The Birmingham age-herald., 1914-08-20
MAP OUT PLANS FOR TIE REBUILDING OF
 MERCHANT MARINE
Expenditure of $25,0OO,0O0 to Purchase Oceangoing Vessels Approved By
 President

Washington. August 1e.--The adminis- tration today mapped out comprehensive plans for building up the American mer- chant marine with government money. for the immediate purpose of transporting products of the United States to warning European nations and to South and Gen. tral America.
 President Wilson, In consultation with democratic congressional leaders. ap- proved project contemplating expend- iture of approximately $25.ooo.0oo to pur- chase ocean going vessels to be operated under the direction of government ship ping board.
 Government insurance of American ships and cargoes against war risks would be provided for in bill subntted to Con- gress after 1t had been approved by the President The bill was introduced in the Senate by Senator Clark of Arkan- sas and in the House by Representa- tive Alexander. It would create tenn porary bureau of war risk insurance in the treasury department. and would appropriate $5.eo0,oo0 for the payment of losses and Siooooo to operate the bureau.
 Plans agreed for the purpose of pur- chase of ships by the government in- clude n shipping board to comprise the President. the Secretary of the Treas ury, the Secretary of Commerce. and the Postmaster General It is proposed to use the ships principally in the foreign trade, and the administration hopes that great impetus win be given to trade be- tween South and Central America.
 Plan to Obtain Money
 The present plan is to obtain money to carry out the project by the sale of Panama canal bonds. It was decided that 1t might take sometime for sufficient ships to take advantage of the recently signed amendment to the Panama canal act allowing foreign built ships to reg ister under the American flag, and the necessity for moving the crops of the United States is so pressing that extra ordinary steps were decided on.
 It 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 conferred with Secretary McAdoo Senators Clark and Simmons and Representatives Underwood and Alexan- der on the entire shipping question. The
 
 the meeting. The President was told that it would be almost impossible to move exports unless the government stepped in and he finally consented to the scheme.
 No offers to sell ships to the gov ernment have been received. but it was the general understanding that owners of many vessels now tied up in Ameri- can ports will be glad to dispose of them.
 Immediately after the conference today work was begun on the proposed legisla- ton. and SSnate and House leaders plan to bring about the completion of the move- ment as quickly as possible. There al- ready is pending before the House naval affairs committee a biIl to~ appropriate S25, 100000 for the purchase or construction of a fleet of 20 vessels. Another bill or this character is pending in the Senate naval affairs committee.
 Watt Before Committee
 Before the House naval affairs commit- tee today, Rear Admiral w. M. Watt. chief of the bureau of construction of the navy department. discussed the type and size of vessel which would be useful as trading ships, and at the same time would be available as auxiliaries to the navy. He said the ships should be from 1oooo to l2.000 tons displacement. He added that the navy needed 20 or 30 such ships for use In emergencies.
 Fred Woods, president of the Maryland oleei cotlpaDy, Salu that lZ or 10 auxlii~ arles of the type described could be con- structed in eight or nine months.
 Secretary McAdoo tonight made public figures on grain In ports along the gulf coast and the Atlantic seaboard. showing that nearly 5000O.000 bushels either are in terminal elevators or in transit and that few ships are loading. In New Orr leans he said there are 15.700.o00 bushels: in Galveston. 25,263oOO; in Baltimore, 3,60o,- 900; in New York. 293,ooo. and in Boston. 641, ,O00
 Railroads have refused to accept further grain shipments to New Orleans and Gal- weston, and while at New Orleans six ships are loading grain, virtually none of the grain at Galveston is being touched. Even if all these millions of bushels of grain are disposed of the secretary thinks the situation will become acute again when the cotton crop Is offered for ship ment.
 D. A. s. Franklin. director of the Inter- national Mercantile marine, came to Washington today to consult with the President and other government officials. MT. Franklin proposed that the gov- ernment provide for the purchase of available foreign built ships. declaring the step imperatively necessary. owing to the difficulty of raising capital necessary from private sources.