The Birmingham age-herald., 1915-10-17
Beaten in Last Congress It is Now Revived Minus
 Purchase Plan
TO BUILD MERCHANT
 AUXILIARY SHIPS
Proposes Shipping Board to Handle Situation Similar to Manner in Which Panama Railway is
 Handled

Indianapolis Ind, October 16-tSpecial) William G. McAdoo. Secretary of the Treasury, speaking at meeting in his honor in the Chamber of Commerce building. foreshadowed a plan of the na- tional administration to revive in a new form the shipping bill, defeated at the late session of Congress after bitter fight which. at times. came near caus- ing a serious division in the democratic party.
 MT. McAdoo spoke earnestly in behalf of a project like the old one in many respects, but new in a number of par ticulars. He was followed intently by the audience. which realized that was being presented.
 Need of a Merchant Marine
 Secretary McAdoo said that last June he put this inquiry to the navy depart ment: Considering our navy as it is today, and having reference to it's max mum usefulness and efficiency in time of war, what number of merchant ves- StiS anu Ol NDdt tOtdl tOlfidS6 WOuiu Dt required?'
 Admiral Benson, as Acting Secretary of the Navy, replied: "There would be required 400 merchant vessels for aux ilaries with a total of 1,172,000 gross ton mage. In addition to the above should our own coast be invested or even occa- sionally visited there would be required large number of small vessels fitted for mine-sweeping, say at least 324 of such vessels, of about 15o gross tons each
 There is no doubt of our ability" said MT McAdoo, ito supply from our coastwise vessels the 324 small vessel for mine sweeping, but we are not so for tunately situated with respect to the 400 merchant vessels for auxiliaries. I am informed by the navy department that we could draw from our present mer- chant marine approximately 100000 gross tonnage of vessels that could be convert ed into naval auxilaries. This leaves us with a deficiency of about 500,000 gross tonnage to meet the needs of our navy as it stands today and without allowing for growth.
 Two Classes of Ships
 We are paying to foreign steamship lines more than $3oo,000,000 per year, when by having our own ships we could pay them for this service, build up a mer- CIdut uidI1He WHICH Will ploit Oui pco- pie in time of peace, and serve our coun- try in time of war. A really useful navy auxiliary should consist of fast passen- ger and cargo ships, as well as ordinary cargo ships. The combined passenger and cargo ships would be suitable for operation on specific routes. We should not. however, establish regular steamship lines where sufficient and satisfactory service has been established by Ameri- can companies operating ships under American registry The ordinary cargo ships could be used in any and all parts of the world.
 '"ro bring about these results ship ping board should be created consisting of the Secretary of the Navy and the Secretary of Commerce members eX- officio, and three members to be select ed by the President and confirmed by the Senate Congress should put into the hands of this board fund of $50. 000, ,00C to create a naval auxiliary of suitable merchant ships of from 100000 to 50o.00t gross tons. This board should have au- thofity to establish as quickly as possi- ble steamship lines to the east and west coasts of South America and to the Ori- ent.
 The shipping board should have au. thority to organize a corporation, or cor porations, and to subscribe to the capita stock thereof, in whole or in part, as the board may determine. The board should have authority to vote the stocl belonging to the United States for the election of directors These directors will in turn, choose the officers and em ployes of the corporation. By this means they will be removed from political in- fuences just as the Panama Railroad company and Steamship line, in whcf the government is the sole stockholder
 is unaffected by political influences. 'The shipping board should have tho power to lease the distinctively cargo ships to responsible individuals, firms, oi corpora tions. under such conditions a. the board may deem best, but in nc event at less than per cent on the cos of construction, and per cent for de preciation The board should also hav' authority to operate them in commerc' | whenever suitable lessees cannot b' 1 found or whenever in it's judgment thu i subserved by such direct operation through the medium of corporation O | corporations.
 i Case of the Pacific Mail
 The orders for these vessels need no be limited to the Atlantic and Pacif 1 coz sts. There is no reason why our ship yards along the great lakes cannot b utilized for the same purpose; why the. 1 cannot be employed during the dull win | ter months in turning out the parts fo | these vessels, which could be transporte l in sections through the Great Lakes an 1 the canals to the Atlantic ocean, and as l sombled there.
 1 The shipping board should have powe to reform our navigation rules and regu I la tions. to study shipping problems an | recommend to the Congress the neces 1 sary legislation to encourage and develo a great American marine under tn l American flag.
 ..The time has come when the Congres l should consider the creation of some ir l str umentality for the regulation of mer 1 chant marine companies What coul | argue more strongly in favor of govern l mental regulation of ocean carriers tha the recent action, of the Pacific Ma 1 Steamship company? Here Is compan which has operated service betwee San Francisco and the Orient for man years Our business mon, manufactui ers, and producers. have built up gres trade interests with the Orient upon tn faith of this service.
 "All of a sudden, and without adequat notice. and with utter indifference to tn injuries that might be done to shipper and the interests of this country, tn Pacific Mail Steamship company sells ii ships and announces that it will discor Nc ,f<