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Practical yo Ship Problems-III How the Jones Act Both Benefits and Retards Development of American Merchant Marine HE act entitled "the merchant marine act of 1920" commonly known as the Jones law. is the most recent and comprehensive legisla- tien enacted by congress for the avowed purpose of establishing and fostering a permanent merchant ma- the United States. This law may be assumed to com- prise the matured ideas of the sixty- sixth congress as to the proper meth- rine for ods for accomplishing the purpose desired. Such purpose, as broadly de- fined is to provide for the national defense; for the proper growth of our foreign and domestic commerce, by furnishing commercial ships to carry the major portion of our overseas trafic; and to serve as an auxiliary to the naval or military arms of the government in time of war. The law declares the ultimate aim of the govern- ment is, and of the shipping board shall "be, to establish an ~Aiméetican merchant marine upon the basis of private ownership. Analysis of the law itself discloses three main divisions: Firsts Amendments to previous acts. Generally speaking these are intended: To annul war legislation; to transfer from. the executive to the shipping board certain powers granted to the former during the war period; and to provide for current contracts, and for the proper liquidation of claims and. penalties. Second: Constitution of the Board. Sec- tion 3 increases the membership of the board; prescribes the method of appointment, the geographical distri- bution of commissioners and the poli- tical affiliations of the commissioners; and specifically excludes all parties hav- ing private interests in shipping or allied trades. : Of these five provisions, two may be classed under the head of "poli- tical," "namely, those prescribing the sections from which the commissioners Shall be appointed, and-that not more than a bare majority of the board shall belong to one political party. Appointment of the commissioners is to be made by the executive, subject to confirmation by the senate. As to the geographical distribution, it rarely has been possible under our System to consider fitness apart from the claims of locality. To ignore this BY ROBERT EDWARDS ANNIN factor tion, would produce jealousy, fric- and- complaint, and not im- probably result in the impairment of popular support. The ideal way to ap- point commissioners would be to make experience and ability the sole consid- eration. Section 3 contains only the most general provision on this point, merely prescribing that the commissioners shall be appointed with "due regard for fitness." As under any conceivable provision, individual qualifications must be judged by the appointing power and by the senate, it is difficult to see how any change of phraseology would be of real importance. If the executive be a judge of men and disposed _ to look first and _ chiefly at the question of fitness, he may do so, subject of course to the limita- tions stated. If he be not a judge of men, no phrase will make him so, and the only corrective must. be the judgment of a majority of the senate. The clause providing that each com- missioner shall devote his whole time to the duties of his office and _ shall not be employed, or hold any official relation, nor acquire securities of com- mon carriers, etc., during his term of office, is eminently proper and _ nec- essary. Authority Is Extensive The duties and powers imposed and conferred upon the board by this act 'are most impressive in their number and range. First of all, the broad purpose to be served is the establishment and main- tenance of a fleet of merchant ships which shall remain under the Ameri- can flag, and under American jurisdic- tion, while competing for traffic in world markets. This, like the general welfare clause of the constitution, is almost all embracing, and is capable of a wide interpretation. In addition to this, the law indicates in some de- tail, the routine duties imposed on the board; the sale, charter or opera- tion of the ships; what ships shall be operated by the board, or under their supervision; what ships shall be chart- ered, and what ships shall be laid up or scrapped. The decision of these - questions is necessarily vested in the board as representing the taxpayers' interests. 335 All owners reserve to themselves final decision on these points. The sale, or disposition of other property acquired or created by the Emergency Fleet corporation during the period of the war, or subsequent should be done by another agency. This idea is reinforced as a practi- cal suggestion, when we come to con- sider the exacting duties imposed upon the shipping board by the third class of provisions which may be described ag: Third: Provisions intended to pro- mote our ocean commerce by conferring special: rights upon our own ships, and by hampering the competition of our rivals. Among other things, the board is expected to establish or aid in the establishment of trade routes; to regu- late, or assist in the regulation, of ocean rates, directly and_ indirectly; to watch the natural flow of commerce, and adjust the policy of the board to conditions as they develop; to ac- quire and maintain an accurate knowl- edge of harbor facilities; to direct the construction of wharves, warehouses and terminals; to confer with the sec- retary of war as to the improvement of rivers and harbors; to' investigate harbor congestion, and suggest reme- dies therefor. Also to supervise in- surance, and create an insurance fund out of earnings. It may build up a "construction loan fund." It is further charged with the pre- vention of rebates or discrimination in contracts; control of charter and registry of vessels, domestic or for eign; and conditions of sale, transfer or mortgage' of ships. It is to in- vestigate whether acts have been vi- olated as to compensations, deferred rebates, or unfair practices. In the carrying of all United States mails, American vessels are to receive prefer- ence and this is implicitly put under the direction of the shipping board. It is responsible also for the enforce- ment of coastwise laws and for the exclusion therefrom of vessels either built in foreign countries or documente under foreign flags. It is apparent the exercise of all these powers will be a sufficiently heavy burden for any board of seven men. They constitute in themselves