FOREIGN TRADE ZONES 79 
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less the increase in traffic be wholly absorbed by foreign lines, the 
merchant marine of the home country should be benefited. In coun- 
tries which are largely dependent upon other countries for the trans- 
portation of their foreign commerce, or which do not have an excess 
of vessel space to take care of increased business, the free port, even 
where instrumental in developing new trade, might not exercise a 
Pronounced influence upon the merchant marine. 
These conditions do not prevail in the United States. The United 
States Shipping Board was created by an act of Congress approved 
September 7, 1916, entitled “An act to establish a United States 
Shipping Board for the purpose of encouraging, developing, and 
creating a naval auxiliary and naval reserve and a merchant marine 
to meet the requirements of the commerce of the United States with 
Us territories and possessions and with foreign countries; to regulate 
carriers by water engaged in the foreign and interstate commerce 
of the United States; and for other purposes.” The act of June 5, 
1920, known as the merchant marine act, sets forth the policies to 
be followed by the board in its administration of the merchant marine, 
nn the following language: 
. That it is necessary for the national defense and for the proper growth of its 
foreign and domestic commerce that the United States shall have a merchant 
Marine of the best equipped and most suitable type of vessels, sufficient to carry 
the greater portion of its commerce and serve as a naval or military auxiliary 
Ih time of national emergency, ultimately to be ‘owned and operated privately 
by citizens of the United States ; and it is hereby declared to be the policy of the 
United States to do whatever may be necessary to develop and encourage the 
maintenance of such a merchant marine. 
The question of the establishment of free ports in this country is 
one directly affecting the maintenance and operation of our mer- 
chant marine. We are seeking to expand our foreign trade and to 
bring about conditions which will permit the successful operation of 
our ships, It has been necessary for us to maintain service on some 
toutes which to-day do not offer enough cargo to return a profit to 
the operator. On other routes the load factor is unfavorable, and 
on still others we have been unable to secure a proper share of the 
trade, Particularly do we need to attract a larger share of the high- 
Pay commodities and the more valuable basic materials, such as 
those which have for many years filled the warehouses of London 
and Hamburg. Free ports properly located and properly designed 
{0 permit the most efficient handling, loading, and unloading of 
vessels should aid in the fulfillment of these basic needs. 
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