Evening star., 1924-04-27
ADVOCATES OF i. S. MARINE
SEEK TO APPLY AID ACT
Deferring of Preferential Rail Rate ON
Cargoes for American Ships for
Long Period Opposed.

right to say when it should become
effective The practice of granting
preferential railroad freight rates on
goods intended for export and import,
as compared with the rates on goods
for domestic consumption, had devel-
oped during long period, and the Su-
preme Court had sustained the prac-
tice.
Ever since the enactment of the
merchant marine act of 1920 there
have been loud protests from British.
italian and other shipping interests
against those clauses intended to give
preference to American shipping.
They dubbed it flag discrimination"
and Illuminated against it on many
occasions. And now, when the first
real effort to make effective one OF
these clauses is made, members OF the
Senate and House have been swamped
with pleas not to permit the very
thing which Congress declared should
be done to help build up the American
merchant marine. First the ship
subsidy plan of direct aid to mer-
chant vessels was opposed by the for
eign interests, and because sentiment
in this country was against sub
sides" to private interests the ship
subsidy failed to be acted upon and
has apparently been dropped, at least
for the time. And now the same kind
of a fight is being made against the
indirect aid contained in section IS.
Senators Cor Application.
Sentiment in favor of the applica
ton of section % with as little delay
as possible exists strongly among many
of the senators. There will be no at
tempt to bring forward legislation 10
postpone it in that body now, it is said.
If the House should pass a bill for
this purpose the Senate committee on
commerce will then consider the mat
ter but there ia no assurance that
it will consider it favorably.
The proof Of the pudding is in the
eating, and, according to senators
who favor the application of section
IS, it will be impossible to determine
what will be results of that legiSia-
ton unless it is put into effect The
very outcry which is raised against
it by foreign shipping interests Is
indicative to these senators that 1T
may be expected to benefit American
shipping. AS for the American eI-
porters and importers, 1t is believed
that once the section has been in op-
GRAFTON conditions will soon adjust
| themselves So that they will not suf-
| fer, 50 that their goods will be han
| died adequately in American-f1ag YES
| sells.
Cause of Objections
The protestants, who include. for
example. the National Industrial Traf-
| fic League. the Millers' National Fed
eratiou the Maritime Association of
the Boston Chamber of Commerce and
! the Western Petroleum Refiners' AS
sociation. maintain. on the other hand,
| that the traffic would be required to
pay the higher domestic rates in
place of the lower export and import
| rates, because there would not be
American ships TO carry all this traf-
| fic. They contend, too, that many
for tonnage in foreign vessels to
move within the next few months,
| and that their commitments were
| made in the belief that section IS
| would not become effective on such
| short notice, and that to apply it
| now would work a hardship on them.
1t has been argued also that the ap-
! yD1s Tor, of
in discrimination in favor of one
American port over another and in
| one American exporter or importer
| over another.
The Shipping Board, through a
committee consisting of Commission
ers Plummer and Thompson, held
hearings on the question of applying
section % at Boston, New York, New
| Orleans, Portland, Greg; San Fran
| cisco, Los Angeles, Chicago and St
Louis before determining that the
American shipping facilities were ad-
equate to handle the traffic in the
meaning of section IS.
The opponents of the present applica-
tion of section % point out, however.
that the investigation of conditions was
made two years ago. They insist that
what is needed is most thorough study
OF conditions as they exist today Many
OF the supporters of section % concur
in the belief that it should not be made
| effective until all the facts are
in hand as to the service that can
| be rendered. Such studies, it is
learned. are now under way. On April 1,
! 1924, the services maintained by the
| United States Shipping Board Emer-
| gency Fleet Corporation numbered 7s
divided as follows: European trades.
Al; Mediterranean trades, Z: South
american trades, 9, and far eastern
| trades, 19- The number of vessels
employed in these services was 35s.
The total number of vessels in the
European services was 1853; in the
Mediterranean services, 3S: in the
South American services, SO, and in
the far east and long voyage sery-
ices, ia. There are certain American n
privately owned ships engaged in
overseas trade, but the great bulk of
this traffic is handled in the govern
ment-owned ships, workde at present
through private operators under con-
tracts with the government
Other Vessels Available.
If the traffic desiring to go in
American bottoms increases greatly
under the operation of section 2s-as
its proponents hope it will-the Ship
ping Board Emergency Fleet Corpo-
4 hn ~
put into the services. 1t must be
borne in mind, however, that Ameri-
can merchant vessels are costing