I also enclose, in case it should be of interest to you, a copy of a letter
addressed by the Agent for the Trans-Atlantic Passenger Conference to Mr.
Mooney, summing up what
transpired at the abortive Conference between the Lines, which sought to
reach a compromise.
Mr. Joseph Mayper of
the Trans-Atlantic Passenger Conference to Mr. Franklin D. Mooney,
Chairman of the Committee of American Steamship Lines
Dear Sir: The foreign flag Lines interested in
cruises and services from United States Atlantic ports to the West
Indies and other nearby ports, regret exceedingly to learn that the
meetings which their committee has been holding with your committee of
the American flag Lines interested in similar services, and which have
been continuing since March 15, have been terminated without having
reached a cooperative working agreement—due, primarily, to the
insistence of the American flag Lines that no cruise of less than a
certain number of days’ duration shall be operated by any foreign
[Page 936]
flag Line, even though the
cruise vessel calls at a foreign port, and even though such port, as is
frequently the case, is a port of the country whose flag the cruise
vessel flies. So that there should be no misunderstanding regarding the
position taken by these foreign flag Lines, they have requested me to
confirm the statement already informally presented to your committee at
our last joint meeting.
Reports of the hearings held before Committees of the Senate and House of
Representatives on certain pending bills as well as statements appearing
in the public press, had indicated that certain of the American flag
Lines felt that they had a grievance against the foreign flag Lines in
that, while none of the activities of the foreign flag Lines were
claimed to be illegal, it was alleged that they were in some respects
unfair.
Particular reference had been made to so-called “cruises to nowhere,”
calls by cruise ships at Port Everglades, Florida, and winter services
to Havana by trans-Atlantic ships in competition with the regular
services of the Ward Line.
The purpose of the joint meetings was to determine exactly what were the
points at issue and whether or not some understanding or agreement could
be arrived at between all the Lines concerned which would be mutually
acceptable.
As a result of the numerous meetings held, it was developed that there
were, as a matter of fact, six main items which the American Lines felt
must be dealt with:—First, cruises to nowhere; Second, calls at Florida
or other United States Atlantic Coast ports by cruise ships; Third,
Havana winter direct services; Fourth, short cruises; Fifth, calls at
Porto Rico by foreign flag cruise ships, and Sixth, that in the case of
port to port passengers between the United States Atlantic and West
Indies port or between two West Indies ports carried by cruise ships,
where there was an established American flag service, the foreign flag
Lines to agree in principle to charge a differential rate over the rate
charged by such American flag services.
All of these points called for a concession by the foreign flag Lines and
no consideration was offered in exchange by the American flag Lines.
While the discussions were necessarily tentative and subject to approval
and ratification by the Principals of the representatives of the foreign
flag Lines in New York, it was agreed by those representatives to
recommend to their Principals the acceptance forthwith of five of the
six demands made by the American Lines. These were:—
[Page 937]
- 1.
- Discontinuance of cruises to nowhere.
- 2.
- Discontinuance of calls by cruise ships at Florida or other
United States Atlantic Coast ports.
- 3.
- Elimination of calls by cruise ships at Porto Rico.
- 4.
- Discontinuance of direct one-way business between New York and
Havana.
- 5.
- Agreement in principle to charge a higher rate, the exact
amount to be mutually agreed upon, in the case of port to port
passengers on cruise ships.
The only question remaining was the demand for a restriction on cruises
by foreign flag Lines, even though they touch at a foreign port. The
American flag Lines proposed that no cruises shall be permitted, even
though a foreign port is touched, of less than a certain number of days’
duration. It was also proposed by the American flag Lines that no
foreign flag ships shall make a cruise on which the first port of call
is Havana, irrespective of what other ports may be touched subsequently
and notwithstanding the latter’s agreement not to carry passengers one
way, that is, that all passengers will make the full cruise and be
returned to New York in the same ship. It was further demanded that when
Havana is the last port of call for a West Indies cruise ship, a number
of other ports must be touched first, and the cruise is to be of two
weeks’ or more duration.
As noted above, the foreign flag Lines were and are still prepared to
recommend acquiescing in the demands of the American flag Lines in five
of the six points at issue but, after full consideration, they feel it
is unreasonable and impracticable to attempt to arbitrarily place
restrictions on legitimate cruises touching at foreign ports
irrespective of their length or the number of ports of call.
With regard to week-end cruises (to foreign ports) it is the very
definite opinion of the foreign flag Lines that these do not compete
with or draw” business from any regular American service. An entirely
new class of passenger is attracted—the two important factors being the
short time involved and the cheap rate. The majority of these cruises
are from four to five days’ duration including a weekend, so that people
are away from business one and a half or possibly two business days
only, and investigation has developed that this time factor is a
governing one in the great majority of cases. These people would not
take a trip to Halifax, Bermuda or Nassau, for example, by a regular
service with a stay between ships. It is further felt that these short
cruises encourage many people who never before have taken a sea trip, to
do so, and will awaken a desire in them for sea voyages and that
subsequently they will take longer trips by regular services.
As regards calls at Havana by cruise ships, it must be borne in
[Page 938]
mind that while other “West
Indies ports have attraction, the main attraction in the West Indies is
undoubtedly Havana. Very few, if any, West Indies cruises could be
successful if a call at Havana were not included.
The complaint was that the putting on of a direct service for one-way
passengers between New York and Havana during the winter months only, by
trans-Atlantic steamers, when the season was at its height, was unfair
to the Ward Line, as the volume and the quality of the business
throughout the year, including the summer months, was not such as to
justify the maintenance of ships of a similar type, regularly in that
service. Without touching on the right of any ship to trade between two
ports of different nations, which right has not, we believe, been
questioned, this complaint has been met, so far as these discussions are
concerned, by the undertaking of the foreign flag Lines to recommend
that any foreign flag New York-Havana service during the winter, and
even one-way business by cruise ships between New York and Havana, be
discontinued.
In a spirit of friendly business cooperation the foreign flag Lines were
and still are quite willing to enter into an agreement with the American
flag Lines on cruises and services to the West Indies as to fares and
their maintenance, differentials, agency commissions, rules and
practices to govern the trade, responsibilities of charterers,
arbitration of disputes, etc., so that vessels in these trades can be
operated on an equitable business basis for all Lines concerned.
The foreign flag Lines have endeavoured to deal with the situation with
the utmost fairness and consideration but beyond the foregoing they do
not feel that they can go, or that they could fairly be asked to go.
As suggested by us just before our joint conference terminated this
afternoon, we are writing to the principals abroad setting forth the
present situation in detail, and if they have any further suggestions we
shall be glad to communicate with you again.
Very truly yours,
