REPLIES TO CARD AND SCHEDULE INQUIRIES. 429

Hes of the association to the furnishing of unbiased and truthful information
to Congress, with a view of enacting laws which would make it possible for
such associations to operate successfully a merchant marine under the American
 flag. An association as outlined could control the cable lines to the principal
 foreign countries and could thereby assure itself and its members the
only prompt and accurate form of transmission of information, ete.
An officer of an organization working for the general welfare
of American foreign trade suggests another method by which an
American merchant marine may be adequately developed through
private enterprise. He says:
The Council finds this is possible only by first removing all unnecessary legisative
 burdens and restrictions, and, secondly, by the businesslike and accurate
determination of the policy necessary to place American vessels on an equal
footing with their competitors in the conditions which may be expected to
prevail after the war. As an agency to this end, the Council has recommended
the establishment of a permanent Government shipping board composed of men
experienced in shipping in foreign trade. It is believed that such a board could
recommend a policy which would command general approval and support.
A prominent consulting engineer thinks it should be left to—

¢ * the Government to do the necessary things to immediately start and
to develop as quickly as possible an American merchant marine on economical
ines. If necessary, the first vessels ought to be owned by the Government, subject
to withdrawal for naval purposes in case of war, but to be operated by private
shipping companies under a lease that will insure low shipping rates to all
American products and a guaranteed minimum operating return to the operating
company, or under some basis equivalent to the large subsidies and the advantages
 of cheap labor and operation now enjoyed by all foreign steamship
lines.

A shipping combination.—An officer of a cement company cites
the European shipping combination and its methods:
Is there any better type for our purpose than the North Atlantic steamship
ombination participated in by England, Germany, France, Sweden, etc., which
makes overmastering rates against our trans-Atlantic shipping in times of
peace; or than the European shipping combination that overmasters us in rates
to South America? Availing of those overmastering rates, any agreement, any
“ oartel ”, is open to any trade interests seeking to worst our similar trade.
The cement trade to South America was virtually closed to us despite the differential
 taxation passed by Brazil, for example, when the European shipping
combination vessels steaming from the United States to Brazil raised their
rates to overcome that differential tax. In this way, Germany, England, France,
ete., in times of peace, retained their cement trade to South America.
American ship registry important.—A firm of 66 years’ experience
in exporting answers through one of its partners that—
American steamship lines or steamers running under the flag of the country
for which the merchandise is intended are very important.
Foreign steamship lines between this and other but European countries, but
ander a European flag, are apt to be run in the interest of European lines.
Even steamship lines running under the American flag, but in which the controlling
 capital interests are European, are not desirable for the same reason.
The sales manager of a coal company also replies that American
ship registry is a matter of importance. He says:

The principal difficulty coal producers have in entering the foreign trade
from the Gulf ports is vessel tonnage. It is very difficult to get foreign vessels
to come to Gulf ports for coal cargoes. If the companies owned their own
vessels, it would be necessary to begin with, at least, to operate under the
American flag, so they could take care of coastwise and foreign trade both.
Under our present marine laws we can not operate under the American flag
and compete with foreign vessels.