Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-08
Washington Ticker
BY CHARLES P. SHAEFFER,
Associated Press Financial Writer.

It is expected the Senate will take up
shortly the White bill, which would
authorize the Postmaster General to
give preference In the award of mail
contracts to lines purchased from the
Shipping Board-in fact, and permit
the award of contracts to such COM
panies without competitive bidding.
within the maximum rates of compen-
sation allowed under the Jones-White
act of 1926.
Little senatorial opposition Is expect
ed, although the measure departs from
the fundamental principles of con-
tractural relations between the Govern
ment and private businesses. Whether
objections will be raised to the measure
on this account remains to be seen,
but there are some VINO feel dan
gerous precedent would be established
by the Government entering into con-
tracts with steamship lines without
competitive bidding. and refusing the
same sort of treatment to other cor
porations which do business regularly
with the Government.
It is said that one of the points
involved in this legislation is the ap-
parent desire of the Mississippi Ship
ping Co., purchaser of the line which
had been operated from New Orleans
to ports on the east coast Of South
America from the Government, to not
only obtain for themselves this mail
contract, but to surround themselves
with such legislative protection as
would prevent. the Postmaster General
from awarding another mail contract
to any operator of American ships from
the Gulf to similar ports.
Claim is made in certain steamship
circles that such procedure would be
creating little short of a monopoly for
the Mississippi Shipping Co. and legts-
latively limiting the development OF
shipping out of the Gulf to South
America that would flow down the Mis-
sissippi Valley from the great industrial
cities and sections Of the country ex-
tending for many miles inland.
Also, it is claimed, the proposed legis-
lation would automatically prevent the
carriage in American ships of sub
stantial portion of the exports of this
country as enunciated in the merchant
marine act of 1920 and reaffirmed by
the act of 1928
Steamship interests which oppose the
measure point out that If the MlsSls-
sippi Shipping Co. is given the only mall
contract to be awarded on this route 1t
will cost the Government approximately
$4,000 900, and will produce in the way
of new construction just half as much
tonnage as would be produced If two
contracts were awarded which could
be accomplished through an additional
expenditure by the Government of about
100000.
Canada maintained its distinction OF
being the United States best customer
of vegetable oils during March last.
Figures just issued by the foodstuffs
division of the Department of Com
merce indicate that proximity to the
source of supply was a valuable consid-
Grafton in inducing the trade.
The bulk of the Dominion's purchases
of this class of commodity was crude
cottonseed oil amounting to $3,796,680
pounds, valued at 1921 ,434. Canada,
possessing adequate reflneries, imports
the crude product to save duty, after
which it is converted. in large measure,
to lard compound, although part of
the crude product is manufactured into
soap. This country, incidentally, was
the only purchaser of crude cottonseed
oil during the month.
Coconut oil was another factor in the
Dominion'S supremacy during the
month, purchases totaling 950.763
pounds and valued at $l59,958 being
made. In addition, it purchased 49,
AS pounds of linseed OIL a. 84 pounds
of soy bean oil and 32,923 pounds of
coco butter oil.
Total exports to all countries during
the month under discussion, with their
values, follow: