South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-08-20
COVE RNMENT TO
OPERATE SHIPS
DURING TROUBLE
Present Plan is to Have United
States Purchase Vessels to
be Used in Carrying Goods
to European Ports.

WASHINGTON. Aug %. - Plans
for the purchase and operation by
the government of q number of mer-
chant ships to relieve the situation
created by the European war were
worked out Tuesday night at
lengthy conference between Secy.
McAdoo. Sen. Simmons and Rep. Tn
derwoOd and approved today by Pres.
Wilson
The conference was held at Rep.
TnderWoOd's residence and lasted UNI
til after midnight Two New York
business men whose names are with
held attended the conference. They
are understood TO have been repre-
sentatives of the Hamburg American
and North German Lloyd Steamship
lines
Administration officials were reti-
cent Wednesday on the question Of
the naturalization of the ships 10 be
purchased by the government. but IL
is believed that with the direct own
ership and power Of the United
States back Of the ships they will not
he molested by any of the warning
powers.
There Is apprehension. however,
that il "A wholesale purchase is made
OF German vessels. France and Eng
land may regard them as being sold
Ito avoid consequences of war and
that they may be seized and held in
prize courts despite their ownership
by the United States This may lead
to serious complications. 1t is feared
that the ships are certain TO be seized
If they are used To carry supplies 70
Germany. but IL is thought they may
not be mOlested if their traffic is con-
fined 10 the ports Of the allies and
The plan 20 be followed viii he
copied after the method employed In
the ACQUISITION OF the ships of the
Panama Railroad company. A cor
pOration will be organized for the
purchase of the ships and this cor
pOration viii be backed by the United
States government The details have
not been worked out; but inasmuch as
there are many objections 10 the out
and out purchase Of the ships there is
some possibility that the corporation
will be organized only to charter the
vessels
The whole subject was discussed
Wednesday at the white house by the
president and Secy of the Treasury
Clarke and Lewis, and Representa-
tives Underwood and Alexander
After the conference Secy Tumulty
made the following statement
There was an extensive discussio ion
of the best means for Immediately
providing ships TO carry the goods
now waiting for the markets Several
plans were proposed and it was fin
ally agreed that a bill should be
drawn and introduced at a very early
date which should provide for the
purchase OF an adequate number of
ships by the government and their
operation through a corporation con-
trolled by the government as in the
case OF the Panama Railroad company
which operates ships as the railroad
itself and which is controlled by the
government"
Later IN the day Rep. Alexander.
chairman OF the committee on mer-
chant marine and fisheries and Sen.
Clarke. chairman OF the committee on
commerce. introduced the administra-
ton bill TO provide war insurance Of
vessels registered under the American
flag The senate commerce commit
tee Will meet Thursday To consider the
hill
For the establishment and main
tenance OF the bureau the bill APP
propriates 500, 600.
Authority Is given the president TO
suspend the operation OF the act
whenever the necessity for further
war risk insurance by the govern
u1ent ceases To exist