The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-08-27

/ .. washington. Aug. Zo.-Ine Dul-
ted States Steel corporation, the
Standard Oil company and the
United Fruit company have noti-
fled the government Of their inten-
lions to put their fleets under the
American flag, under the new law
extending home registry to foreign
built craft. .'" c..
Washington, Aug. 25.-The ink of the
presidential signature was barely dry
on the new shipping registry bill when
II became plain that IL would not ac-
complish the results expected of 1t.
Unless the situation changes radically,
there will be few foreign built ves-
sells which are now foreign-owned to
be taken in under American registry.
This statement does not apply to
foreign built vessels which are already
owned by Americans, but which ny
foreign flags. The expectation Is that
considerable number of them Will
apply for American registry. AT the
time this Is written. the United Fruit
company. whose vessels are American
owned but which fly the British flag,
is considering applying for American
registry. Some other companies are
doing likewise. a
The White House came to the con-
clusion this week that under the new
shipping registry measure foreign
built vessels in large numbers would
not seek American registry. In fact.
word reached the White House that
American capital would not so into the
project. Had the bill passed in a form
that would have admitted foreign
built vessels to the coast trade, the
situation would have been different.
But II did not so pass because, though
there has been a lot of talk about the
coastwise shipping monopoly for
months and years, neither congress
nor the administration, when 1t came
to the scratch. had the nerve to make
such a monopoly impossible by admit
ting foreign built vessels to the coast
trade. 1t is a strange fact that, al
though congress and the White House
were assailing the coastwise monopoly
when the measure was up for the re-
peal of free tolls. neither one wanted
foreign built vessels to enter the coast
trade and would not permit 1t when
real chance was presented.
New Law Fails.
This, however, is a story in itself.
What about the results to accrue from
the shipping registry bill? The other
day, a conference was held at the
White House at which 1t was decided
to put bill through congress for the
government purchase OF vessels for the
merchant trade in the present war time
emergency. This decision was reached
because of the fact the information
had come that American capital was
unwilling to buy foreign built vessels
and transfer them to American reg
lstry. ~
The new shipping bill, as indicated, |
promises to bring few foreign built YES
sells into the American registry, unless
exception be made Of vessels already
owned by Americans but flying flags
Of other nations. a. H.,
The shipping registry bill as passed |
permits the registry under the Amer |
lean flag of foreign built vessels who'll |
iy owned by citizens of the United |
States or corporations organized and |
chartered under the laws of the United |
States or of any state thereof, the pres |
ldent and managing directors of which |
shall be citizens of the United States" |
Loop Hole Provided.
Under this language, as has been re- |
peatecly pointed out, paper corpora
ton might be organized and chartered |
In this country, with an American pres
ident and managing directors, hut with |
stock held in England or Germany or |
anywhere else abroad and this corpora |
ton might buy up the vessels of the |
Hamburg-American line or the North |
German LLOYD line, which are now in |
American ports, and transfer them to |
American registry. .....,
Under the new law, such a transac-
ton through a dummy corporation Is /
perfectly possible. That such a trans.
action would be regarded as a violation
of the London convention of 1909 /
which took the ground that change /
of registry to escape the consequences
Of war would be disregarded by the bel
ligerents Is entirely probable. In fact,
some of the ablest lawyers in congress
pointed this out repeatedly In the de-
bates. 5...
Senator Cumming, in order to prevent
such state of things as far as possible
got an amendment adopted by the Sem
ate that at least 81 per cent of the stock
or interest must be American owned.
He held that IL this was the case the
charge OF fraud in the transaction could |