The Washington times., 1914-08-23
WILSON FACES FIGHT
UPON SHIP PROGRAM
Sharp Debate Due in Congress
on War Risk and Vessel Pur-
chase Measures.
By JOHN SNURE.

The Administration and Congress are
getting into deep water in their efforts
TO establish an American merchant ma
rine in short order. Sharp debate On
several phases of the shipping situation
Is expected to mark this week in Con-
gress, both in the House and Senate.
The strongest kind of pressure is be-
ing brought on the Administration and
on Congress to have the bill for the
Government purchase of ships halted.
Thus far, 1t has not succeeded. Ship
ping interests are getting lobbies busy
lere and conservatives and reactionarieS
in Congress, who fear any form of Gov
crnment ownership, are denouncing the
plan and opposing it on one ground and
another. Among other things, the ar
:ument is made that the declining state
VI the revenues will not warrant it.
Not only this, but opposition has CROP
ped out to the war risk insurance bill in
the House. This bill has passed the
Senate. 1t will be forctd through the
House this week under a rule, according
10 predictions Of Leader Underwood.
The situation with respect to the war
risk insurance bill and the Government
purchase bill is much the same. The
war risk insurance bill contemplates
that the Government shall go into the
business of insuring vessels and their
cargoes only in case adequate insurance
at reasonable rates cannot be had or
private concerns.
Following the outbreak Of the Eu-
ropean war. insurance companies
raised their rates on war risks to
what are declared to be unreasonable
heights The war risks insurance bill
is intended to force the private COM
panies to hold their rates down to
reasonable figures or lose the busi-
ness by having the Government do
the insuring.
lust as the insurance interests are
alleged to have sought to hold up ship
ping owners on insurance, the ship
lwners are said to be trying to hold
up the Government AS an inducement
O invest in foreign-built ships and
put them into American registry,
American capital is insisting on the
Government guaranteeing the bonds
of corporations formed to take over
shipping. The Administration balks at
this and Congress will have none OF it.
The President and leaders in Con-
gress evolved the plan of Govern
ment purchase when it was seen that
he ship owners and shipping inter
4sts and capital intending, to go into
shipping were bent on holding up
Uncle Sam in an emergency.
At a conference Saturday afternoon
at the White House. attended by Sem
ator Clarke, Congressman Alexander,
senator Simmons and others, opposi-
ton to Government purchase crop
ped out. Mr.. Alexander is AGAINST
Government purchase The White
House and Congress are deluged with
protests against Government pur-
chase.
But the President, though willing to
drop Government purchase IL private
capital is willing to go ahead on rea-
sonable terms and purchase ships for
entry into American registry, is not
ready to drop it yet Senator simmons
view is that the Government should be
armed with the legislation, in order to
act If need be. and not be left helpless.
Senator Clarke is expected to press the
bill to passage in the Senate.
In other words, the Government ap-
parently will have a club in its hands in
the form of the war risk insurance bill
and another in the form of the Govern
ment purchase bill Developments may
~ause the Government purchase bill to
be dropped, but il is the present inten-
ton of the Administration to go ahead
with il unless the merchant marine
problem is otherwise solved
That considerable number of Ameri-
can owned vessels which fly foreign
flags will enter American registry un-
der the new law is shown by the fact
that the United Fruit Company already
has practically 0Anpleted arrangements
to put a large part of its feet. amoult- |
ing TO about twenty vessels, under the
American flag.