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Hokitika Guardian, 29 September 1932, Page 4

Retails of further aggression against ship-owner-; of other countries by the United States, which have been mace available through the International Chamber of Commerce, 'show that a. Bill introduced into the United States House of Riopresentatives and Senate in February will,-, if passed, enable the Ul’ifed States Shipping Board to prevent any foreign lipe from operating oiri of any United States port to any pant of tire, world, merely by certtlying’ that ships- -of the line are engaged in “unwarranted and excessive- competition” with United States ships. Anotheir. Bill, introduced at tile s.iime time,-, aims at- preventing foreign ships from .engaging in cruises out of American ports to West Indian and Cana dian waters, and will probably become law. The first -Bill has met with opposition, but United States ship-own-I efs “now threaten to seek legislation to impose a tax on foreign shipping engaged in the so-mlled “indirect trades” out of United States ports to ports not belonging to countries whose flags the ships fly; to subject all foreign steamship conference agwe?rnpnts 'to the full ’ application cf the Sherman Anti-Trust Act (an Act to prevent combines); and to abrogate the treaties with foreign countries under Which ships are allowed to take liquor into United States ports under seal. The International Chamber regards the proposed tax Bill as the most important. United States shipowners have suggested either an income or a head tax sufficiently liej.vy as to make the “indirect trades” (as, for example, a British service between New York and Buenos Aires) unorofitable for foreign Powers. It- is claimed that such a- Bill could he passed under present conditions. In November, 1921, a United States law was passed 1 preventing the imposition of income tax on any non-resident alien or foreign corporation, in regard to revenue derived from the operation, of foreign (ships, provided the country whose flag the ships flew granted the same, exetnution to United States shipowners. Under this Act, United States owners have worked 'out reciprocal tax agreements with all' the imnortant commercial nations of the world. Similar agreements have been effected between other countries. If the threatened tax Bill is passed, the International Chamber of Com mere© points out, it would run counter to all thewe agreements, and might result in 'their destruction. The Chamber feels that nothing could he more unfortunate than a reversion to conditions prevailing-in 1920-21, when an international tax war of the most objectionable kind was seriously threatened. It has, therefore, been suggested that appropriate steps should be taken by the Chamber’s Slea Transport Committee to exert influence against the passage of such an Act by any country.