The Birmingham age-herald., 1924-04-03
MILLERS NOT HIT,
 THOMPSON SAYS
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 flour movement, it may be enlightening to -udyise of facts developed at the hear ing held at St. Louis, Mo. A protest on behalf of the Southwestern Millers' league was filed with the committee. The stenographic record evidences that the protestant admitted that the ex- port agent of the Southwestern Millers' league was the export agent of foreign lines, prompting me, as chairman of the committee, to say that the committee, in ascertaining that fact, desired to de termine:
 f'Whether or not those who may pro- test against the application of prefer ential feature of our marine laws, speak free from selfish or direct financial in- terest and that if the protestant, the Southwestern Millers League, maintains as its agent man who is the represen- tative of foreign shippin.: lines and concerned in the continuance of such relation, the committee could not construe a protest from then. as re- flecting an unselfish interest.
 Section Is Mandatory
 For your information, it may be MCAl LO CupnacA1C tuaS tAAt cCCNkODs OH it is interpreted by the United States shipping board, is q mandatory section of the statute, the only discretionary power lodged in the shipping board be- ing that of determination of shipping facilities under the American flag. Keeping particularly in view that fact that in addition to the established serv- ices at present in active operation, there were in reserve ample ships to meet any required addition to existing services, the shipping board, in possess sion of opinion that American flag facilities existed, in propriety, could not nullify law of Congress when upon the commissioners of the shipping board was imposed the duty to enforce the law. Clearly, enforcement of the law is not matter of discretion with those upon whom the duty of enforce ment rests. sz-s
 ''At the hearings so held, opposition to theg application of section 2S de- veloped from: AsIr
 Railroads having preferential inter change of freight agreements or under standing ship operators and certain organizations closely identified with the operation of vessels under foreign registry exporters whose buyers in foreign countries sought to designate the transport of the commodities pur- chased by them in the ships of their own nation.
 Would Hamper Competition
 sf the principle of preferential con- tracts between American railroads and foreign shipping interests was accept ed as a national policy, the ultimate end would be the, control of ocean transportation by the rail carriers in conjunction with ships either of domes- tic or foreign registry; it would operate against free competition on the ocean and would be unjust to those ports not located at the ocean terminus of. the rail carriers, occasioning congested' move ment through certain base ports, which the merchant marine act of 1920 clearly seeks to avoid as a matter of national policy. Except through the actual operation of ships at sea, there can be no control of ocean transportation rates. Regulation of rail charges is clearly domestic, and the interstate commerce commission enforces the policies estab- lished by the Congress. No such con- trol is possible on the ocean, the only regulatory influence being the opera tion, under the national flag, of those nations desiring to participate in the regulation of freight charges for the protection of their nationals. e,ls .s
 "It is believed that the application of section 28, as one of the preferen- tial features of the merchant marine act, will augment greatly the tonnage moving in American flag ships; will lessen the losses now ,entailed in Ameri- can flag operation by the government; :; will tend to stabilize financially the operation of strategic trade routes and be helpful toward the ultimate acquisi- fion by private operators of the ships at present engaged in the overseas trade. At present (exclusive of the Caribbean and West Indies services) there are approximately 20 ships en- gagged in overseas commerce under pfi- vate ownership and in operation in overseas trade by the United States shipping board 35 vessels of approxi- mately 2,216, TAP gross tons, and 3,32a113 deadweight tons.
 Would Mean Foreign Control
 ''If the operation by the government, under that provision of the merchant marine act requiring the establishment and maintenance of essential trade routes not covered by private American flag operation, should be withdrawn it would permit the export and i'm port movement of the UniteL States to be controlled by foreign shipping in terests, whose nationals in conjunction with their government, could name, without interference, the ocean freight charges to be imposed upon both the export and import commerce of the United States. Ns
 ''Aside altogether from the economic protection referred to-, the necessity for a merchant marine fleet in active oper- ating condition for the national pro lection in emergency is the highest essential, and on that point the testi- mony of naval officers is impeiiingly enlightening. The operation by the government of the ships in it's possess sion is but peace-timeS utilization of unit, of national defense, carrying with such utilization, however, a very primary purpose of economic protection
 and benefit tO American commerce