New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-15

The Trouble with the Government
Ownership Shipping Bill.

The renort Of the Chamber Of Commences
Special Committee on the American Merchant
Marine in the Foreign Trade, presented yesterday
met with opposition and was referred back TO the
committee for further consideration. This is not
surprising since the report contained some recon-
n,endations which on account of their noVelN
need 10 be more generally discussed fuohc
oninion is still much confused on the question OF
recreatng an adequate American merchant
marine. We are cropping along, just as we CROPPED
aIonc for many years on the subject Of currency
reform. There is no powerful popular sentiment
concentrated behind any of the relief plans now
under debate. Congress would undoubtedly nave
done something more at the last session than
mass bill admitting foreign built ships to Ameri-
can registry if it had had any clear idea Of what
the country expected it to do.
The snecial committees report offers some
suggestions for government aid in rebuilding
satisfactory merchant marine. To clear the way
for these it announces its absolute opposition TO
President Wilson'S government purchase ana
operation measure. In that, we believe 1t re-
fleets the nearly unanimous sentiment OF the COM
mercial bodies of the country. These pouieS
realize that a restored merchant marine must
rest ~, a broader economic basis than govern
mont ownership 1t must be rowth In which
the business world itself has vital interest. The
ortrv Of the government into this field as an
owner and operator would practically limit the
development Of the merchant marine to the eX-
tent of the governments participation. Private
enterprise would be frozen out, instead Of being
encouraged to take hand in the restoration.
What the United States hopes to get is real
deep sea service Of its own, such as 1t used 10
have. But the government would be reluctant to
90 bevond a minimum limit of investment There
development would stop, private competition hav-
ing been killed off That is the great fault Of the
Wilson scheme 1t would not spend dollar out
Of the Treasury to encourage the private IN
weston TO spend four or five dollars. 1t would
simply use the governments credit to drive all
private capital out of the ocean carrying trade
The special committee naturally prefers some
plan which will bring the government and the
private investor into helpful cooperation. 1t sug
gests that the government create fund to guar
antee the bonds Of American shipping companies
which put new vessels into commission. That IS
a form Of Treasury aid similar in character to sub
ventions. subsidies and the other devices through
which other countries have stimulated the
growth of their merchant marines. But any
form of aid involves financial assistance, and there
is no difference in results between taking money
out of the Treasury to aid private shipping vent
ures and running government vessels at loss and
then charging the deficit to the taxpayers.
The South American trade would be helped, the
special committee says, by amending the ocean
mail law so as to allow 81 mile to vessels Of
sixteen knots as well as to those Of twenty knots
and So a mile to all vessels making twelve knots.
These changes have been several times advocated
in The Tribune, but Congress would never sane
ton them.
If we are to get anywhere in recreating an
American merchant marine we must build on
what we have and stick to the -neral theory of
government aid, not government monopoly. Ma
tonal ownership might be tolerabe as a means
Of starting one or two new lines to South America
for use after trade conditions in South America
become more normal. But national ownership on
big scale would cost more than it is worth
and would leave us eventually worse off as
a maritime nation than we now are.