New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-20
Government to Own Ma
jority Stock-Public
Sale of Minority.
WAR RISK BILL A
PART OF NEW PLAN
Quick Results Expected for Ad'
ministration Project to Build
Up Merchant Marine.

Washington. Aug. IA project Tor
the United States government to buy
ships to carry foodstufs abroad was
approved by the President to-day. Inc
plan contemplates the expenditure o.
about S25,OOO.OOO.
The plan has not been completed
but it is proposed that board com
prising the President, the Secretary
Of the Treasury, the Postmaster Cen
eral and the Secretary OF Commerce
prepare it. Tentative plans were dis
cussed at a conference attended by the
President, Secretary McAdoo, Senator
Simmons. chairman Of the Senate FL
nance Committee; Representative
Underwood, chairman Of the House
WAYS and Means Committee, and Rep
resentative Alexander, chairman Of the
House Committee on Merchant Marine
and Fisheries.
Mr.. Tumulty, Secretary to the Presi-
dent. made this statement after the
conference:
"The conference was about the de-
velopment and safeguarding OF the
merchant marine, and every aspect OF
the question was gone over. II was
recognized that the present emergency
called for prompt action to relieve a
situation which can be relieYed If &C
ton is promptly taken. 1t was agreed
that a bill should be introduced in Con-
gress providing for the insurance OF
war risks by the government.
I'm addition to the agreement Of
opinion as to the insurance bill there
was an extensive discussion of the
best means for Immediately providing
ships TO carry the goods now waiting
for the markets. Several plans were
proposed, and it was finally agreed that
a bill should be drawn and introduced
at a very early date which should pro-
vide for the purchase of an adequate
number of ships by the government
and their operation through a corpora
ton controlled by the government, as
in the case of the Panama Railroad
Company, which now operates ships as
well as the railroad itself and which is
controlled by the government
War Risk Insurance Bill.
The war risk insurance bill, which
was introduced simultaneously in the
House and Senate to-day, provides for
the establishment in the Treasury De-
partment of a bureau Of war risk in
surance, with director at a salary Of
$4,000 a year and other employees. II
also provides for the issuance Of war
risk policies on American vessels and
their cargoes at a reasonable rate,
varying according to the conditions
and class of vessel insured, in the dis
erection of the Secretary Of the Treas
ury. The bill calls for the appoint
ment of an advisory board of three
members conversant with the work to
be undertaken by the bureau. II is
proposed TO appropriate a fund of So
100000 for the payment Of losses, with
$4,000 additional for the estab-
lishment and maintenance of the bu-
reau. The President is authorized to
suspend the operation of the act when
ever he deems it justifiable.
The plan agreed upon to-day at the
White House conference calls for the
creation of corporation for the pur-
chase and operation Of ships similar
TO the Panama Railroad Company.
The government is to own 81 per cent
of the stock. and the remainder is TO
be sold TO the public by subscription.
If the remainder is not disposed of the
government will take up the unsold
portion of the stock.
Panama Canal Bonds Issue.
To provide the funds for the pur-
chase OF vessels, according to the opir-
ion at the conference, il would be adj
visable to issue Panama Canal bonds.
The principal section of the admin
istration bill reads:
1.-THE said Bureau of War Risk Insur-
ance. subject to the general direction
of the Secretary of the Treasury, shall,
as soon as practicable, make provisions
for the insurance of American vessels
and cargo shipped or to be shipped
therein against loss or damage by risks
of war, whenever, in the judgment of
the Secretary, it may appear that Ameri-
lean vessels or shippers in American
vessels are unable in any trade to Sc
cure adequate war risk insurance on
terms of substantial equality with the
vessels or shippers of other countries
because of the protection given such
vessels or shippers by their respective
governments through war risk insur-
ance."