THE JONES ACT

Dominion, Volume 14, Issue 32, 2 November 1920, Page 8

THE JONES ACT

AMERICAN RESTRICTIONS ON OUTSIDE TRADE

DISCUSSED BY CHAMBER OF

COMMERCE

RETALIATORY MEASURES SUGGESTED

Thf} United States Jtorclmnt Shipping Act, 1920, popularly known as the Jones Shipping' Act, eam« before the Wellington Chamber of Commerce for consideration yesterday afternoon. Thj: measure is so vastly important to the commerce of the world that the executive', through ths secretary (Mr. 11. D. Vickery), Ims issued a summary of the Act in order that the commercial community might be thoroughly cognisant of what it was faced with in respect to trade with Hie United States. The following: excerpts from that summary will bo found of interest:—

Section 5 permits the sale of vessels, the. property of the United States Government, to citizens of the United States on deferred payments, if necessary, spread over fifteen years. , Section G permits the snh> of similar vessels to aliens only after it has been found such vessels cannot b(\ sold to citizens of tlio United States, and only provided fivo members of the 'board agree, the reasons for such sale to bo placed on lvcord. Section 7 authorises the Shipping Board to inquire what shipping trade in the United States should be developed, and, if nccessnvy, lyase vessels for the purposes of such new development; pre_ierpnej) to be given to citizens of tho United Statrs. . ■ . Section $ gives the board power to mquire into and promote transportation facilities of all kinds, investigate! problems of congestion, railway and water transport terminals and methods of handling goods, and for this purpose to work in conjunction with tho Inter-State Commerce Commission.

Section 9 provides for the insurance on vessels sold deferred payments. Section 10 authorises the board to create ont of the net revenue, from operations and sales a a;parate insurance fund. Section 11 authorises the Shipping Hoard to set. aside annually during a period of five years out of the revenue from sales and operations a sum not exceeding 25,000,000 dollars, to be known as its construction loan fund, to be used in aid of the construction of vessels ot the best and most efficient typa for tlio establishment and maintenance of service on steamship lines. The. board may assist in the construction of such vessels to the extent of two-thirds ot tho cost, taking as security a first lien, upon tlio entire interest in the vessel. Section 12 permits the United States Shipping Board Emergency Ileet Corporation to continue in existence and operate vessels until all. its vessels are 20 makes illegal the payment of, or the entering into an agreement to pay, deferred rebates to any shipper; or discrimination among shippers regarding the allotment of space available. Section 21 provides that as from February 1, 1922. the coastwise laws ot tlio United States shall extend to the island territories and possessions of the United States not now covered thereby, and the Shipping Board is directed before that time to have established an adequate steamship service, and to maintain ana operate sucli a sen-ice until it can bo taken over on satisfactory terms by privato enterprise, . « Section 23 provides that the owners of n. vessel registered under the laws of the United 'Stetos and operated in trade shall, for each of tho ten taxable years while so operated, from the enactment of this Act, be allowed as a deduction for t'hc purpose ot ascertaining his net income subject to tlie war piofits and oxcoss profits taxes an ■a'nount equivalent to the net earnings of such vessel during such taxable years, provided that such owner h® B imestcd_oi set aside for investmenb in the building in shipyards of .the United States of new vessels equivalent to t.lie amount of the ,rar profits or excess profits taxes that 'would have been payable l>y su f cll and provided that two-thirds of the cost of any such vessel shall bo paid out "• tho ordinary funds of the person. . Section 24.—A1l mails of the United States shipped or carried in vessels shall, if practicable, be shipped or carriedion American-built veaels f <= d undei tlie laws of the United States. Section 26 permits cargo tered under the laws of tho V nl K a States to carry sixteen passengers .in addition to crew without such vessels being deemed to bo passenger vessels. "The nrivilege bestowed bj tnis sec tion on vessels of the United States shall be extended in- so far as the foreign tindo' is concerned to the cargo vessels of anv nation which allows the like l' l ' l * 1 " tl to cargo vessels of the United States in" trades not restricted to vessels undei '' SecHoif "27.—"Tliat no merchandise shall be transported b s' f or u land and water. 011 penalty of forfeittue thereof, between points in the United State, including districts, territories and nossPsions thereof embraced within, the coastwise laws, either (hrM T^ ° l of'die0f'die foreign port, or tor any palt ot the transportation, in any other vessel than a vessel built in and documented under the laws of the United States and owned by "persons who are citizens of tlio Un cd States, or vessels to wluch the PTlUlege of ongaging in the cO^T H 'f a *° c t! extended bv sections 18 91 22 of this Act. Provided, that this section shall not apply to merchandise transported between nointe within the continental United States, excluding Alaska over through routes heretofore or hereafter recognised Iw the Inter-State Commerce .Commission for which routes rate tariffs been or shall hereafter lie filed with said commission when such routes are part over Canadian rail lines, and their own or other connecting water facilities. Provided 'further, that this B ®tlon bhft} not, bocome eftective upon the \ukon Hiver until the Alaska railroad shall be completed and the Shipping Board shall find that proper facilities will bo furnished for transportation by persons citizens' of the United States for properly handling lihe traffic. . Tho president (Mr. M. Carr); 111 refeirilig to tlio restrictions which are p.aced on American goods for shipment overseas in any but American bottoms, made tlio suggestion that any goods which have been shipped in compliance with tho spirit of tho Act, and so subject to tlio concessions it provides, might be mado subject to a special duty. sny> « 10 per cent, at this end. that was to eav if they were to be given, ft 10 per cent concession by shipping in American vessels they should bo made to pay a 10 per cent, duty the other way about ft, equaliso matters. In his opinion it was only fair to call the attention oi tho Minister to tho extraordinary provisions of the Act, with a view to making an alteration in the tariff, to bring about some such equalisation as suggested. Mr A. I\ Roberts said that the only way to" meet the effect of the Jones Act was bv legislation. He thought that they were British enough to arrange that 1111porters should bind themselves to an agreement to stipulate that their cargo should be carried in British bottoms only. Tho trouble was that only some would keep to such an agreement and others would not, so perhaps a tariff was the better way of meeting tho situation, Surely they wero British enough to say thai; our importations should be carried in British bottoms. The secretory (Mr. H. 1). Aickerj) pointed out that the Americana imposed n, preferential tariff 011 sent to America, unless it-was carried in American bottoms. Tho rate was 10 per cent, additional if our wool was not so carried. Tho president moved thati the matter 1» brought- under the notice of .the Minister of Customs, and that a resolution on the subject he sont out to otlior chambers asking "their to-oporalion. He thought Mr. Roberts's suggestion respecting an agreement to use only British bottoms for tho conveyance of goods was an excellent, one, but he did not see how they wero to combat tho duly charged on wool that, was carried in vessels other than .American. He did believe, howover, that they could bring some pressure to bear if they could get Iho Minister of Customs to act, more especially if ho could get the Commonwealth Cms-

torn* authorities to take similar action. M> T Martin, mentioned that llto American shipping authorities were not mvininioiH in approving the Act, and S i tat certain of lto provisions had not been put into force (the exceptions C O clauses 28 and 34). and )f the remonstrances made were strons cnoucli, ■ the can Government nnpht vp,t Tinve to «• thdraw it in their own interests. He I ,o eht air the colonies should protest " lh the Imperial authorities. Fi a lv it was decided that tho Jones ■Shipping Act should b» discussed more fnl'v at the coming confercnco of tho Associated Chambers of Commerce..