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Hold Final Public Hearing on General Shipping Code PPROVAL of the master ship- A code has again been de- layed because of the desire of the recovery administation to give the fullest consideration to the views of all groups concerned. A final public hearing on the proposed master shipping code will be held in Washington on April 26. J. B. Wea- ver, deputy administrator for the shipping section, will conduct the hearing. All complaints and criti- cisms will be heard at that time. Despite the great care with which the code has been prepared, includ- ing numerous conferences with rep- presentatives of all groups, result- ing in repeated revisions of the orig- inal draft, there is still evident a considerable body of opinion op- posed to one or another, or several of its provisions. For instance, vessel officers rep- resented by the United Licensed Officers association object to _ its minimum wage clause, holding that it calls for a seale below the mini- mum wages now paid by some opera- tors. Shippers are vehement in their opposition to the clause on freight rates, especially the stabilizing fea- ture, claiming that it will have the tendency to destroy all flexibility in rates and that consequently it will work a hardship on shippers and manufacturers. Objection to Regulation Another group, represented by the National Industrial Traffic league, objects particularly to section seven on the ground that there is no public demand for further regulation of water lines than now exists, that it cannot possibly help but increase transportation charges and that it will divert traffic away from water lines, Also, that it places the man who pays the freight bill at the com- plete mercy of the vessel owner, However, it is the hope of the re- covery administration that all con- fiicting views can be reconciled at the public hearing or shortly there- after, so that the code may be signed. The proposed general code of fair competition for the shipping industry on which the final public hearing is to be held has been proposed by members of the shipping industry who are truly representative of the industry, It covers the operations of all elements of waterborne commerce of the United States under all flags, including service vessels, such as towboats, lighters, barges, ferries, and all similar vessels, and contract- ing stevedores and such other mari- 8 time operations as may be deter- mined by the administrator, irre- spective of ownership. The proposed code is, therefore, applicable to com- mon carriers, contract carriers and private carriers. It is in the nature of a master code, which sets up the organization structure for divisional and subdivi- sional codes which will be developed The proposed code, when finally approved, will make operative im- mediately the labor and untair trade practice provisions, Provisions re- ferring to the establishment of mini- mum charges are only outlined in the proposed code and minimum tariff rates will not be determined until such time as the divisional and sub- divisional codes are approved and signed. Methods of code government, code authority election, assessments on the industry, and so forth, are provided for the divisions and sub- divisions, The general unfair prac- tice provisions which are applicable to the industry as a whole will be further amplified in divisional and subdivisional codes. It specifically provides the method of voting which will obtain in the divisional or subdivisonal codes covering trades in which there are foreign members of the industry. The proposed method does not give control to predominant American or foreign interests, but provides for an equality of representation. In case of failure to agree, the final decision is vested in the administrator. It proves that the divisional and subdivisional codes may set up mini- mum tariff rates for the services rendered by the members of the in- dustry in the divisions and subdivi- sions, which rates will be reviewed by the shipping board bureau or by the interstate commerce commission, or both, In the foreign trade habitual and drastic rate cutting below rates established by conferences, duly ap- proved by the shipping board bureau, causes both American and foreign flag lines operating under conference agreements severe losses in revenue. Only a control of the minimum tariff rates, together with stabiliza- tion of labor costs, will cure these destructive conditions. In transportation, the public in- terest requires that common carrier service be regularly maintained and open to all shippers on equal terms. The establishment of minimum charges for service will not eliminate the contract or private carriers, but will control this class of transporta- MARINE REVIEW—May, 1934 tion insofar as it enroaches upon the legitimate sphere of the common earrier, There is much bulk traffic, such as coal, iron ore, phosphate rock, crude oil and so forth, which should not be seriously disturbed, but it is definitely in the public’s in- terest to prevent the contract or private carriers reducing charges to levels which threaten the common carrier service. The proposed code outlines a workable, feasible method of making exceptions to minimum rates in cases of emergency. The shipper will have all the protection offered under existing laws for the review by the shipping board bureau and or inter- state commerce commission if rates seem unreasonable by following the procedure now in operation, The proposed code contemplates the appointment of one administra- tive representative in the ports of New York, New Orleans, Chicago and San Francisco, and such other ports as may later become necessary. These administrative representatives will sit on all code authorities which focus at the port in question, and will develop uniformity of policy, expedite action and assist in the settlement of questions which will arise. Divisional labor boards and a na- tional labor board will be established with equal representation of em- ployers and employees for the con- ciliation of labor disputes. Harmoni- ous and effective cooperation be- tween them should result, What the Code Provides The proposed code is designed to provide the following: 1. Stability of minimum wages, maximum hours and other working conditions, 2. Establishment of minimum charges for services rendered at rea- sonable levels. 3. Flexibility in the reduction of minimum tariff rates in cases of emergency. 4. Sufficient local autonomy in the divisions and subdivisions to en- able the industry to efficiently and effectvely provide for self-regula- tion. 5. Cooperation between the ad- ministration and the shipping board bureau of the department of com- merce, and the interstate commerce commission, 6. Machinery for the adjustment of complaints arising under the oper- ations of the proposed general code and the divisional and subdivisional codes supplemental thereto. 7. Machinery within the industry for the “conciliation of labor dis- putes, first by divisional boards and then by a national board. 8. Protection against monopolies or monopolistic practices or the elimination or oppression of small enterprises,