Arizona republican., 1914-08-20
The Administration Decides
to Meet Emergency by
Establishing at Once a
Government Owned Mer-
chant Marine
IT'S IN MARKET
TO BUY VESSELS
After Crisis Has Passed
Ships Will Probably Be
Used as AuXiliaries Which
the Navy Now So Much
Needs
ASSOCIATED PRESS p1sPArcH1

WASHINGTON, Aug. 19.-Compre-
hensive plans have been mapped out by
the administration for building up a
merchant marine with government
money for the immediate purpose of
transporting United States products to
the warning nations of Europe and TO
Central and South America. The pres
ident in consultation with the demo-
cratic leaders, approved project con-
templating the expenditure of approx
imately $4,000 900 for the purchase of
ocean going vessels to be operated un-
der the direction Of government ship
ping board in carrying on the foreign
trade of the United States. The plans
agreed upon for the purchase of ships
include the creation of a shipping board
composed of the president, the secre-
tary of the treasury, the secretary Of
commerce and the postmaster general,
to have charge of securing the needed
ships and their Outfitting. 1t is pro-
posed to use ships principally in for
eign trade and it is the hope of the
administration that through this medi-
um a great impetus will be given the
trade between the United States and
South and Central America. The pres
ent plan to secure the needed money is
by sale of Panama canal bonds. 1t is
expected that the venture will prove
profitable although that plays no part
in the matter.
Secretary McAdOo. gave figures on
the grain in port along the Gulf coast
and the Atlantic seaboard, showing
nearly 50.000,000 bushels in transit or
in terminal elevators. Before tne house
naval affairs committee. Rsar Admiral
R. NJ. Watt, chief of the bureau of
construction of the navy department.
discussed the type and size of vessels
which would be useful as trading ships
and at the same time available after
wards as auxiliaries to the navy He
said they should be from ten to twelve
thousand tons displacement and have
speed of from fourteen to sixteen
knots. He said the navy needed
twenty or thirty such ships.
1t was decided that it might take
some time for sufficient ships to take
amendment to the Panama canal act
allowing foreign-built ships to regis
ter under the American flag and the
necessity for moving the crops of the
United States was so pressing that ex-
traordinary steps were decided on
1t is planned to organize company
similar to the Panama Railway COM
pany, controlled by the government,
for the actual operation of the ships
after they have been purchased.
The president was in conference for
several hours with Secretary McAdoo,
Senators Clarke and Simmons and
Representatives Underwood and Alex
ander, discussing the entire shipping
question. The war risk insurance bill
was approved at the meeting The
president was told that it would be
almost impossible to move the exports
of the United States unless the govern
ment stepped in and he finally gave his
consent to the scheme.
The question, how long the govern
ment will keep the purchased vessels
after the present crisis passes has not
been taken up. 1t has been suggested,
however. that some of them may be
retained for use as transports.
Up to the present no offers to sell
ships TO the government have been re-
ceived. but it was the general under
standing in administration circles that
the owners of many vessels now tied
up in American ports would be glad to
dispose Of them.