The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-10-14
'M'AOO0 HAS NEW
SHIPPING PROPOSAL
Would Have Government Build Aux
fiiarfes Now Needed BY Navy To
Be Used in Commercial lanes.
SECRETARY ExCORIATES
PACIFIC NAIL COMPANY
Declares Atlantic Seaboard Profits
Rather Than Seaman's Law Were
Responsible for Sale of Company's
Ships.

Indianapolis. Ind, Oct. 13.--In a
speech here tonight before the bust
ness men sof this city. Secretary of
the Treasury McAdoo disclosed his
new plan for shipping legislation. Mr..
McAdoo's speech was regarded as re-
hecting the stand President Wilson
will take on this question
Mr.. McAdoo presented in a new
dress the old government ownership
plan which was defeated in the last
session of Congress after a long fight.
He proposes that Congress shall ap-
propriate 100000 instead Of the
$40, 100000 provided In the original
bill. Instead of buying ships already
plying the seas. he now advocates the
building of new vessels designed as
auxiliaries to the United States Navy.
operate some of these vessels be-
tween this country and South and
Central American ports. and also be-
tween this country and the Orient.
Others OF the vessels he would lease
to private individuals or corporations
under certain restrictions. The sec
rotary also suggests the creation of
a Federal shipping board to manage
the government ownership plan. He
proposes, too, that power be lodged
with some agency of the Federal gov
eminent to regulate the merchant
marine companies and suggests that
the shipping board be empowered to
act in conjunction with thes Interstate
Commerce Commission In arranging
for through bills OF lading and spe-
cial rates between the railroads ana
the steamship lines,
Mr. McAdoo emphasized the naval
auxiliary feature Of the proposed gov
eminent ownership plan, and many
here gained the impression that the
Wilson administration was about to
seize upon the preparedness issue as
means of promoting the govern
ment ownership legislation in the
Attacks Pacific Mail Company.
The most remarkable feature of
Mr.. McAdoo's speech. however. was
an attack by him upon the officials
OF the Pacific Mail Steamship Com
pany. This company recently sold Its
vessels plying between the Pacific
coast and the Orient and went out of
business because. according 10 the
statements of the officers. they could
not afford to operate under the bur-
densome provisions of the recently
enacted seaman's law.
Secretary McAdoo charges that II
was not the seaman's law which
forced the Pacific Mail people to dis
continue business, but the opportunity
20 reap a big profit through the sale
Of their ships on the Atlantic sea-
board. where abnormal cargo rates
were being charged.
This charge by Secretary McAdoo
will probably mark the beginning of
"A bitter controversy between the
Washington administration and the
Pacific Steamship Mail people over this
In Otn nf1ctala haVa heen
conducting an investigation into the
conduct of the Pacific Mall Company.
Would Require 900 ships-
Secretary McAdoo said that he had
written TO Secretary OF the Navy Dan
ieis. asking hfrn what number of mef-
chant vessels would be required TO
have the American navy as II Is to-
day at Its maximum usefulness and
efficiency in time of war. Admiral
Benson replied for Secretary Daniels
that II would require 400 merchant
vessels for auxiliaries. with a total of
l.l72 900 gross tonnage. Admiral Ben
son added
I'm addition TO the above, should
our own coast be invested. or even &C.
casionally visited. there would be re-
Quircd n large number OF small vessels
fitted for mine sweeping, say at least
324 OF such vessels OF about $50 gross
tons each.
Secretary McAdoo said these 234
small vessels for mine sweeping could
be supplied from our coastwise ship
ping, but that of the 1,172,0oo gross
tonnage needed for other auxiliary
purposes vessels OF not more than
700, 900 gross tonnage, could be con-
verified into naval auxiliaries from our
present merchant marine. This. the
secretary contended. leaves us with a
deficiency of about 100000 gross ton
mage to meet the needs of our navy
as 1t stands today.
Would Build Auxiliaries.
To meet this need. Mr.. McAdoo pro-
posed that Congress appropriate $50, 000-
600 for the building of auxiliary craft.
He declared that the government
should proceed Immediately with the
construction OF the auxiliaries as q
part OF the program of preparedness
The designs for the vessels should be
passed upon and approved by the Navy
Department.
Mr.. McAdoo then went on to de-
scribe his plan for the government
operation Of these auxiliaries in for
eign trade an follows:
"A really useful naval auxiliary
should consist of fast passenger and
cargo ships as we'll as ordinary cargo