The Washington times., 1916-01-31
Chairman Alexander Introduces
Measure for Merchant Ma
rine Controlled by US.
OPERATION IDEA REMOVED
Fund of $50,ooo,ooO Asked to
Provide Ships to Be Leased
for Private Operation.


dent, Secretary McAdoo and secre-
tary Redfield, was introduced in the
House today by Chairman Alexander.
of the committee on Merchant Marine
and Fisheries.
In the new bill there still is provision
for the Government operation of steam
ship lines, but such operation is to
come after efforts to lease Government
vessels acquired under the law have
failed. 1t is provided primarily that
the United States shall construct or
purchase vessels, suitable for use as
naval auxiliaries. which may in time
of peace be leased, chartered or sold
to individuals, firms or corporations en-
gaging in the commerce of the United
States.
If it is impossible to lease the vessels
to private operators, then section eight
of the new law gives the Government
power to operate a steamship line. The
concession that Government operation
shall be of secondary consideration is
expected by the Administration to line
up the forces that defeated the last
bill.
Panama Bond Sale.
A sale of Panama canal bonds to the
amount of $5O,eO0.OOO is authorized for
the purchase or construction of ships.
for naval uses and the merchant ma
rine fleet also will be a naval reserve
fleet in event Of war.
Widest powers over the regulation Of
Joint rail and water rates are given the
new shipping board.
The proposed United States shipping
board not only may regulate the rates
of vessels engaged in interstate and for
eign commerce, but 1t shall license all
such vessels. Powers now vested in the
Interstate Commerce Commission over
the rates charged water-borne freight
and passengers are transferred to the
new board, which will be powerful
body. The same board will have juris-
dictioln over the American registry OF
vessels.
The shipping board will comprise three
commissioners named by the President
and they will get $1O0 900 per year. with
the Secretary OF the Navy and the Sec
retar OF Commerce as members ex-
officio.
The board is to cause the construc-
ton of vessels at American navy or
shipyards. Vessels now belonging to
the naval establishment of the United
states; and which are not now needed,
may be turned over by the President
to the shipping board for commercial
uses. This provision includes vessels
OF the Panama Railroad Company. No
vessel leased by the Government to prl-
vate operatives may be released with
out the express approval Of the board.
Lease, charter, or sale of the Govern
ment constructed vessels may be made
for the coastwise as well as the for
egn trade.
Whenever the United States may re-
quire the vessels 1t has leased, sold, or
chartered, 1t may reclaim them imme-
diately for emergency uses. For the
purposes Of war, the Government re-
serves the right to regain the vessels.
II the Government vessels cannot be
leased, section 8 provides:
THAT tire board hereby created. If
in its judgment such action Is neces-
sary to carry out the purposes Of this
act, may form under the laws OF the
United States or OF the District of CO.
lu1ibia a corporation or corporations,
with capital stock in such amount as
the board may prescribe within The
whose object shall be the purchase.
construction. equipment, maintenance,
merce of the United States with foreign
countries, and the ichartering or leas-
ing OF vessels for such purposes"
U. s. To Hold Control.
II is provided that the United States
shall own a majority of the capital
stock and the shipping board, with the
approval of the President, may at any
time sell the stock Cf such corporation
or corporations owned by the United
States.
Mr.. Alexander says the provisions
of section are designed to meet a
POSSIBLE situation wherein there should
be no response to the offer of the United
states to charter and lease its vessels
and Government operation might he
come necessary in the interest of the
nations commerce.
Another important section of the bill
is that providing that all vessels pur,
chased or leased from the board shall
he registered under the laws of the
United States and that hereafter mo
Vessel registered under the laws of the
United States shall be sold to anv per-
son. firm or corporation other than a
citizen of the United States or tTars-
ferTed to any foreign registry, without
the approval and consent Of the ship
ping board"
Sweeping Powers Conferred.
Sweeping powers over steamship
companies, similar to those exercised
by the Interstate Commerce Commits
sion over railroads are given the pro-
posed shipping board. The bill stipu-
lates that the board shall have power
to regulate the operation of common
carriers in the transportation QG pas
sengers and property between the inter-
state ports of the United States and
countries, "and to determine ana pre-
scribe just and reasonable rates or
charges to he demanded or collected
for the transportation OF passengers or
and reasonable classIfications, reguIa-
tions, or practices to be followed with
regard thereto" 1t is permitted that
the board may allow preferential
rates. II such rates are believed neces-
sary TO carry out effectually the pro-
visions of the proposed law.
Similar jurisdiction is given the ship
ping board over combination rail ana
water rates on shipments destined
from the interior of this country for
shipment to foreign countries by a YES
sci under American registry and enroll
ment. The effect of these provisions
is 10 transfer to the new board powers
now exercised by the Interstate Com
merce Commission, under the law or
thereto, over waterborne Interstate ana
foreign commerce.
The board Is given exclusive authori-
on and after January l. 1917, ~ license
all syaaeaIa pngagad -,