The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-27
PwAN-AMERICAN SHIP
LINE NOW PROPOSED
But Financiers at Conference
Refuse to Invest Until y. s.
Changes Seamen's Laws.
DISCUSS NEW BANK PLAN

wAsHrNdToN, May 26-The session
of the Pan-American financial confer
ence to-day was given over to meetings
OF the group committees which Secre-
tary of the Treasury McAdoo has aid
are relied on to do the real work OF the
conference. Few concrete suggestions
from either the Latin American dele
gates or those from the United States
resulted.
Another session OF speechmakng to-
morrow will be followed by the round
OF conferences on Friday, after which
reports OF committees will be submitted
AT the end OF the day the opinion was
freely expressed In authoritative quar-
ters that the benefits from the confer
ence will consist largely In the senti-
mental effect upon relations between
the business men of the participating
countries and the value OF information
given as to the opportunities held out
to American investors.
Emphasis was laid on the discus
sions of the need for better transporta-
ton facilities between the United States
and South America. There have been
suggestions submitted for the formula
tion Of a plan for the joint participa-
ton OF the American Governments. In
Guiding the United States, In support
OF a merchant marine system.
Here In a memorandum issued from
the press bureau OF the conference:
'One OF the plans for an interna-
ttonal steamship line between South
America and Central America under tho
control of the Pan-American Govern
ments. which Is being considered and
discussed In the Brazilian delegation. is
for the Government OF Brazil to form a
combination with steamship companies
of the United States which send their
ships to Brazilian ports in such n man.
ner as TO subsidize the United States
steamship lines with Brazilian Money"
Cannot Commit Governments.
II was pointed out. however. that
neither the Brazilian delegates nor
those from the United States have au-
,hority to commit their Governments
to any such proposal. AS far as Amer
lean capital IL concerned 1t was en-
phatically asserted by a number Of the
leading Democratic financicrs partiCi-
pating in the conference that they Will
rot entertain proposals for taking part
in shipping concerns until the naviga-
ton and seamen's laws Of the United
. .
The committee appointed by Sc rotary
McAdoo on Monday to consider plans To
develop the merchant marine OF this
hemisphere met to-day without formu-
.ating its ideas for submission to the
conference. II was said that a definite
recommendation would be presented to-
morrow.
one subject discussed was the estab-
lishment OF a United States bank by ma
tional banks in this country which
should act as the parent corporation for
A number Of branch banks In South
America. This idea was advanced some
time ago by Vice-President John J
Arnold Of the First National Bank of
Chicago. and II has been represented IN
some quarters as a plan for contestiug
the South American field with the Ma
;oual city Bank Of New York, which
already has established three branch
banks on that continent.
There was a disposition IN many guar
tiers to discount the Importance OF this
suggestion. and for various reasons.
Doubt was expressed ms to It's practi-
ability. and II was pointed out In add
ton that the Federal reserve act would
nave to he amended in several important
provisions to l~eealize such a plan.
1t was learned authoritatively that the
Federal Reserve BOARD has not given rs
approval to Mr.. Arnold's suggestion II
may he said. however. that tho National
city BANK will not contest such a move
nent should II find real support nom
the bankers Of this country, The idea Is
supposed 10 have resulted from the reali-
that the operation OF branch
banks is a very improbable and risky