New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-31
Government to Operate
Only if Private Cap
ital Lays.
S5O.OOO.OO0 ASKED
TO BUY OR BUILD
Shipping Board Would Have
Powers Like Commerce
Commission.

Washington. Jan. 30.-Providing for
the expenditure Of S5O,O0o,00O for the
buying or building of ships by the gov
eminent. through shipping board
which will have also the power 10 resu-
late water-borne commerce IN much
The same fashion rs the Interstate
Commerce Commission now has the
right 20 regulate interstate land-borne
commerce. the administration ship pur-
chase bill has been completed. Its text
was made public tonight by Chairman
Alexander. Of the House Merchant Ma
rine and Fisheries Committee.
The shipping board. under the terms
Of the bill, will consist Of five mem
bers. of whom two shall be the Secre-
tary Of the Navy and the Secretary OF
Commerce. The other three Will be
appointed by the President. and one
Of the appointed members will he
chairman The board may spend UP 20
S5O,OOO.OOO for the purchase or build
ing Of ships. selling Panama Canal
bonds 70 provide the money. The
bonds may run FOR a shorter period
than the fifty years now prescribed by
law. An initial appropriation Of $780,
100000 for the purchase or lease OF
vessels and 20 be obtained by the sale
Of canal bonds Is authorized.
II necessary, corporation may be
organized for the operation of the
ships. but provision is made for the
leasing Of the ships 10 corporations or
individuals for operation.
Boards Scope Widencd
The striking differences between the
new bill and the one which failed M
the Senate last year are notifications
Of the government operation feature
and broadening Of the powers OF the
Shipping Board. Government opera
ton. under the now bin. would be en-
tered on only as 4 last resort lt pri-
waite capital fails 10 respond 10 the en-
torprise.
One OF the most interesting features
Of the bill Is that 1t not only provides
for the regulation Of freight rates for
waterbornc commerce. but specifies that
the board may authorize preferential
rates" in certain instances. The OBJ
sect Of this. Chairman Alexander
pointed out in his formal statement, Is
10 give the American producers on
equal opportunity with producers ln
other parts Of the world in competing
foi foreign trade.
No. only is the board given the right
10 regulate water freight rates and TO
fix preferential rates on than traffic n
its discretion. but II is also empowered
a. -. arra No a. ~4f
instance. a rate from ST. Louis 20 New
York BY rail. and then from New York
70 Rio by water. This is tho particu-
lar kind of a rate which the bin wishes.
when the board deems II necessary, TO
make preferential.
Crews Would Be Reservists.
In his statement Mr. Alexander
dwclls Al length on the value of the
ships for naval auAIlarics .n the event
of war and Of the value OF having the
trained sailors on the ships. The crews
would form part of the naval reserves
At all times. The plans for the ships
would be specified with a view TO their
use by the navy. The President is en-
powered 10 call the ships TO the navy
without notice in the event o. al emer-
gcncy.
"The bill" says a statement by
Chairman Alexander, "makes the Secre-
tares Of the Navy and Commerce mem
bcrs Of the shipping board tho Sccre-
tary Of the Navy for the reason that
tho vessels purchased or constructed
under the act viii become part OF the
naval establishment in emergencies OF
i'm time Of war. such vessels 70 be Of a
type. so FAR az our marine trade will
permit, suitable for naval auXiiiaries
and army frauSpOrtc
"The Secretary or tho Navy is given