Evening star., 1914-08-20
Bill for s10,0 ,000,0 900 Company,
Favored by Wilson, Sent
to the Senate.
MINORITY STOCK TO BE
SOLD TO THE PUBLIC
$50, ,OOO, 900 Panama Canal Bonds tt
Finance Company-Ships to
Garry American Exports.

are tied up by war in Europe is proposed
in bill received by the Senate commerce
committee today from the Treasury De-
partment.
| This project has the approval of the
President. 1t provides for a corporation
| with capital stock Of $10.OO0O0O. ma
| jority Of which is to be owned by the
government, and the remainder sold to
| the public. and also for the issue of
| $30,OO0.OO0 Of Panama canal bonds to
finance the corporation and its operations.
While emergency legislation for bring
ing foreign built ships under American
registry has been enacted, and while a
bill providing a hve-million-dollar war
risk insurance fund by the United States
government for ships of American reg
| istry during the European was was
reported favorably today in both the
Senate and House, after brief hearings.
vet the necessity for moving crops is 80
pressing that the extraordinary step OF
purchasing q fleet Of merchant vessels
| was determined upon by the admins
| tration.
Senator Weeks Of Massachusetts, call
| ing upon the Secretary OF Commerce
for information as to the cost ana
feasibility of sending six vessels OF
the united 6tates navy Win SehpASS -
American products to South American
ports for the purpose OF encouraging
trade between the United States and
the South American republics
The bill for purchase of the gov
ernment-owned merchant line was
drafted by Treasury officials and q
committee Of the business men called
here by Secretary Of the Treasury Nc
Adoo.
The bill provides for corporation
| xy{f
majority Of which Is to be owned by
the government and the remainder sold
to the public, and also for the issue
Of $3o,00o.ooo Of Panama canal bonds
to finance the corporation and Its
Senator Clarke Of Arkansas, chair
man of the Senate committee. believes
that the bill needs amendment. and
day. though he probably will COM
plete the charges he believes neces-
sary and consule his committee re-
garding the measure and Introduce 1t
tomorrow.
The length Of time that the govern
ment would operate the proposed mer-
chant feet. after the passing of the Eu-
ropean crisis. has not been considered.
| but 1t has been suggested that some OF
the ships might be retained as naval
auxiliaries or as transports. The govern
ment would make money out OF the
project, It was predicted. but that phase
did not influence the administrations pro-
gram.
The ships, II is planned, win sail wher-
ever there is demand for Transports
ton. One outstanding benefit to be real
lied, however. administration leaders
hope, will be the establishment Of closer
and South America, whose shipping IA
cilities have been seriously affected by
the withdrawal Of many Of the freight
steamers Of the nations at war.
Idea Of Administration.
The present idea of the administra-
tion is to have controlling interest in
the company. which Is to hold the pur-
chased ships. remain in the hands of
the government. and to have the mi
nority Of the stock offered for sale
among the people of the United States.
| There is no expectation at present,
however, that much of the stock will
be bought by individuals. because of
the uncertainty of the venture proving
a profitable one in the beginning.
Senator Clarke, Senator Simmons.
Representative Underwood and Repre-
sentative Alexander, who discussed the
question with the President yesterday,
ence at the White House within the
next few days to map out the final de-
tails Of the plan.
| Word received from many members Of
the Senate and House by the President
today was to the effect that there will be
little serious opposition in Congress to
| the purchase Of the ships. 1t was ex-
pected that the bills carrying out the
plans Of the President will be introduced
within the next few days by Senator
Clarke and Representative Alexander.
Efforts will be made to have the bills
passed within the next week.
Vessels Will be Sold.
Assurances that vessels will be sold to
the government under the plan decided
on by the President and congressional
leaders have been received at the White
House. Omcials in the confidence Of the
President you'd not say what companies
have offered to sell their ships and de-
clared that there was nothing definite
| ton has been passed by Congress. It
was reported that the Hamburg-Amert-
| can line ts ready to sell some OF its ships
| to the government.
| The present plan is to rent the docks of
the companies selling vessels to the gov
| ernment
Whether American naval officers will
be placed in charge Of the ships after
they have been purchased has not been
determined. but the inclination OF the ad-
| ministration at present is to adopt this
idea
Questions of the right Of the United
States under international Law to buy
vessels belonging to nationals Of the war
ring nations of Europe are not worrying
| the administration. This subject has
| been thoroughly gone into and the Pres
ident believes that the government has q
perfect right to carry out the proposed
plan. The administration takes the view
that the welfare Of the people Of the
United States demands this STEP
| Tnsuranca Bf1l Tavsred
The bill to provide 100000 war risk
insurance by the government for ships
Of American registry during the Euro
pean war was ordered favorably reported
today by the Senate commerce committee
after a brief hearing. Hearings on the
bill were begun today in House and
Senate committees.
Before the House commerce commit
tee, Majority Leader Underwood was
the first speaker. He declared that
while the government ought not to
ness as q permanent venture, the pres
ent bill was urgently necessary as an
emergency measure.
There IL no DESIRE" he said, 'to
perpetuate this war risk insurance bill
It is purely an emergency measure. ]
do not believe it will cost the govern.
ment dollar. the premiums more than
meeting the losses"
before the Senate committee. bankers
ference with Secretary McAdoo, gave
expert opinion on business conditions
resulting from the European wal. The
committee was headed by Seth Low of