The Birmingham age-herald., 1924-04-03
MILLERS NOT HIT BY SECTION 2S,
 THOMPSON SAYS
Shipping Board Commis. sioner Takes Issue With
 Hall Contention

WASHINGTON, April 2.-Commis- sioner Thompson, of the Shipping Board, in a letter to Chairman Smith of the Senate Interstate Commerce Committee, made public tonight, took issue with statements by Chairman Hall of the Interstate Commerce Com- mission, that enforcement of the prefer ential rail-water clause of the Merchant marine act will handicap American millers in competition with foreign pur- chasers of American grain. In certifying to the Interstate Conn merce Commission that ndequate ship. I ping facilities existed to warrant oper- ation of the preferential provisions in section 2S of the act, the board ex- cluded grian on the ground that there is no fixed rate for it's transportation and because, being a seasOnable prod uct, it's movement is not uniform.
 Replying to Chairman Halls conten- tion that to except grain and not grain products from preferential treatment will discriminate against domestic mill CTS in favor of foreign millers buying American grain, Mir. Thompson asserted the fear apparently was based upon ''the presumption that there will be lacking sufficient American flag facili- ties to transport that portion of the export flour movement now being car ried in foreign flag vessels"
 If sufficient American flag ships are provided" he said, "of course, the pres ent status with respect to the transport of this commodity in no manner will be altered"
 Surprised at Opposition.
 Commissioner Thompson expressed surprise at the commerce commission chairman's opposing section 2S, when 1t IS noted that no request was made of the Shipping Board by Chairman Hall for specific information as to whether or not there is or will be in operation sufficient American lag ships to provide for the commerce moving under export rates in foreign ships, and when off, ticiaily before him was the certification of the board that adequate American flag facilities did exist.'
 The letter explained section 2S at length and emphasized the boards in depreciation of it as a mandatory sec- tion of the statute" the only "discre- tionary power lodged with the board be- ing that of determining when adequate tonnage was available"
 MT 1HompsOH letter In 10lLoWB In full:
 Honorable Ellison D. Smith, Chair
 man Interstate Commerce Committee, United States Senate, Washington, D. C."
 My dear Senator Smith As a pre- liminary. first it should be defined that the enforcement of this preferential DOT tion of our marine laws will not alter fa ck- application of Section 2S merely per- mits the present export and import rates to apply when the commerce moves in American flag ships, as contrary to the present policy of permitting these rates to apply upon the movement in either American flag or foreign flag ships.
 'For clarification, allow me to draw your attention to the letter addressed to you by, Hon. Henry c. Hall, chair man of the interstate commerce com mission. in which opposition to the en- forcement of this section of the mer- chant marine act is reflected.
 Fears Adverse Effect
 "The adverse effect is feared by Chairman Hall, it will be noted from his language. based upon the presump- ton that there will be lacking sufficient American flag facilities to transport that portion of the export flour move ment now being carried in foreign flag vessels.
 If sufficient American flag ships are provided, of course, the present status with respect to the transport of this commodity in no manner will be altered.
 That the chairman of the interstate commerce commission should oppose the application of one of the preferential features designed to build an American merchant marine upon presumption that there is absence of Amerigan flag ships, particularly is not understand able, when it is noted that no request was made of the United States shipping board by Chairman Hall for specific in- formation as to whether or not there is or will be in operation sufficient Ameri- can flag ships to provide for the com morce moving under export rates in foreign ships, and when officially be- fore him was the certification of tn. shipping board that adequate American flag facilities did exist.
 With respect to the question of ] teSntIaU'd ." Pass I've. cslu@n Fsurl ,1