South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-08-21
DRAFT Of BILL
To BUY SHIPS
BEFORE SENATE
Measure Proposes to EXpend
twenty-five Million for Yes
SeIS-Three Plans Are Dis
CuSSed by Members.

WASHINGTON. Aug. 21.-The sen
ate committee on commerce Thursday
received a tentative draft Of the ad-
mlnistration bill providing for a fleet
OF government merchant vessels at a
cost Of about $50, 100000 and the SEN
ate and house commerce committees
both reported favorably the admins
tration measure providing for war risk
insurance.
These were the developments of the
day toward the creation OF a merchant
marine.
The senate committee expects 20
meet Friday 10 consider the details Of
the plan for the purchase OF a fleet of
government Vessers 90 carry the pro-
ducts Of American farms and factories
abroad.
The senate is now divided into three
factions on the subject. one favOr.s
the administration plan Of purchase
and operation by the government with
the probability that the fleet shall be
a permanent institution. Another IA
Vors the purchase of the vessels by the
government, but operation by private
corporations 10 which the vessels shall
be leased. The third is in favor OF the
purchase and operation Of the fleet by
private corporations backed by the
government and which viii pay OIL
their debt 70 the government out Of
the earnings Of the vessels
May BE Complications.
Those who urge the adoption of
the plan Of leasing the vessels TO pri-
vate corporations for operation argue
that the danger OF international COM
plicatiOns would thereby be largely
avoided II one of the vessels should
be seized by a warning government on
the ground that il was carrying con-
traband. the incident would be far
more serious IL the ship were operated
directly by the United States than If
II wer~ operated by a private corpo-
ration.
The administration plan provides
for the organization of a corporation
with a capital stock of $40, 900, 600, a
majority of which is to be owned by
the government and the remainder
sold to the public. Provision is made
also for the issuance of Panama canal
bonds TO the extent of $3O,0OO,OOO to
finance the company and its opera
tiOns.
Ii Is understood the length of time
the government viii operate the YES
sells is not definitely stated, the inten-
ton being TO let il be guided by cir
Cumstances. The president believes
the fleet should be permanently main
tanned and operated by the govern
ment So long as there is need or
their use for the purpose Of trade
they should be kept in the freight
service and after that they would be
employed as auxiliaries to the navy.
War Insurance Needed.
At the hearing OF the house com
merce committee on the war insurance
bill Thursday. Majority Leader Under
wood explained that the measure was
urgently necessary as an emergency
step. Word has come TO congress that
there are 800 foreign built vessels
owned by Americans which Will apply
for registry If such a bill is passed.
There is no desire said Mr.. I'm
derwood to perpetuate this war in
surance bill IL is purely an emer-
gency measure / do not believe II
will cost the government a dollar, the
premiums more than meeting the
losses"
Those who appeared before the
senate committee were Seth Low. b.
r. Outerbridge. J. II. kirlin, Ham bin
Chubb. John III. F'ahay and John j..
Arnold OF Chicago.
The department of commerce ex-
poets a great many applications for
registry OF foreign built vessels under
the American flag as provided in the
bill passed by congress several days
ago.