The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1914-08-27
LEGISLATION,
1T Is SAID, WON'T
HURT SHIP TRUST

Washington. Aug. 25.-The Uni
ted States Steel corporation, the
Standard Oil company and the
United Fruit company have noti-
fled the government of their lnten-
tions to put their fleets under the
American flag, under the new law
extending home registry to foreign
built craft.
Washington, Aug. 25.-The ink of the
presidential signature was barely dry
on the new shipping registry bill when
it became plain that it would not ac-
complish the results expected of it.
Unless the situation changes radically,
there will be few foreign built yes
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 fly
foreign flags. The expectation is that
a considerable number of them will
apply for American registry. At the
time this is written, he United Fruit
whose vessels are American
owned but which fly the British flag,
is considering applying for American
registry. Some other companies are
doing likewise.
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 Hous that
American capital would not go 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 it did lot SO pass because, though
there has been a lot of talk about the
coastwise shiDping monopoly for
months and years, neither ongres
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 it when q
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 it was decided
to put a 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
istry.
The new shipping bill, as indicated,
| promises to bring few foreign built ves-
sells into the American registry, unless
owned by Americans but flying flags
of other nations.
The shipping registry bill as passed
permits the registry under the Amer
lean flag of foreign built vessels who'll
ly owned by citizens of the United
chartered under the laws of the United
States or of any state thereof, the pres
ident and managing directors of Which
shall be citizens of the United States"
Loop Hole Provided.
Under this language, IS has been re-
peatecly pointed out, a paper corpora
ton might be organized and chartered
In this country. with an American pres
ldent and managing directors, but with
stock held in England or Germany or
anywhere else abroad and his corpora
ton might buy up the vessels Of the
neutrality-suspicious. line or the North
German Lloyd line, which are now in
American ports, n 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 thai a change
of registry to escape the ~equen
Of wal would be disregarded by the bel
hgerents is entirely probable. In fact,
some of The ablest lawyers in congress
pointed this out repeatedly in the de-
bates.
Senator Cummins, in order to prevent
such a 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 If this was the case. the
charge of fraud in the transaction could