New-York tribune., 1917-09-07
To Use Seized Vessels Dur.
ing War and Surrender
Them Later
Controversy Legacy
From Denman
America Can Fight and
Still Build Merchant
Marine
By c. w. Gilbert

WASHINGTON, Sept. 6.-The issue
between this country and Great Britain
over the ships building for Great Brit
ain in American ship yards and COM
mandeered by this country is in fair
way to be compromised. This country
will have tho ships for use during the
war. After the war Great Britain will
have them.
Much has been made of this issue in
the pro-Germsn press as a controversy
of the first magnitude, and England has
been reuresented as interested in pre-
venting America from having mer-
chant marine after the war is over.
The facts are that Great Britain called
American attention to the way in which
she herself had handled the same
problem.
When the war broke out there were
many ships building in English yards
for foreign ship owners. Those tina.
we're being built for her allies Eng
land, on the ground that they would
be used for war purposes, permitted to
be delivered to the persons who had
ordered them. Those that were being
built for neutrals were commandeered
for the period Of the war. The neutrals
were paid for their use and indemui-
fed against their loss, and when peace
skn,. 20 - tAo In
land pointed out this situation and
asked that she be treated in this coun-
try at least as we'll as she had treated
neutrsls.
Denman Strong on Controversy
The idea which underay the appoint
ment OF the Shipping Board was the
creation Of an American merchant ma
rine. Mr.. Denmsn, the late head OF
he board, was imDued with that idea
Mr.. Dcnman also had a gift for con-
troyersy, especially with England. Al
though General Goethals was against
assuming ownership Of the British
ships building here, on account of their
extreme cost, 5000 a ton, Mr.. Denman
became committed to the plan.
Since Mr. Denman's departure the
possibilities of American shipbuilding
have been greatly enlarged IL the war
lasts this country will emerge from it
one of the big maritime nations. The
British tonnage building here has be-
come Of less importance, even in the
eyes of those who have visions of a
government built merchant marine,
than once it was. The issue will ac-
cordingly be compromised.
There are two or three other con-
troversies which the pro-German press
or persons interested in trying to raise
public feeling against furnishing our
allies with goods at the same price at
which we buy them ourselves have been
trying to foment between this country
and Great Britain.
"Thc Iron Age" contained the state
ment the other day that American
steel makers were shipping steel 70
England at government prices and
that England was re-eXporting it at
profit This is untrue Not a pound
Of steel has been sold to England at
any government-named price. In fact,
England has not taken pound Of steel
from this country IN several months.
United States Loans Equitable
A similar question has been raised
about our loans to England. II has
been said that we loan money to Eng
land at low rate and she loans it TO
her allies at an advanced rate. The
situation with respect to loans is not
so clear as that with respect TO steel,
for England has always kept the
amount and rates of her loans to her
allies secret.
One American official, whose position
is such that he should be as we'll in
formed as any one in this country
with regard to British, loans. is au-
thority for the statement that no loans
are now being made by England to
her allies. II is said that she even
declined recently to make loan TO
Belgium. From what is generally
known here it is safe TO say that at
least she is making none 70 France
and Italy.
But even il she were continuing her
loan making policy as IT was before
our entrance into the war, II is fair
to say that the money she borrows
from this country never leaves our
shores, but is used for purchasing
here. And she borrows not because
she needs credit, or even cheap credit,
and cannot get il elsewhere, but in
order to pay for commodities bought
here without disturbing the foreign ex-
change situation ard perhaps as con-
sequence utterly upsetting business
conditions. Then the loans are made
as much in our own interests as in
England's.
As to Diesel Engines
Another issue which Mr.. Denman
pretended existed between this coun-
trv and England vas over Diesel en-
gines. Mr.. Denman made 1t appear
that England was preventing out get
ting these engines.
The fact is England has no Diesel
engines herself. These engines are
still in the experimental stage; most
of those made in England won't work.
Some engines OF q promising character
are being produced by Harlan & Wolf,
on a Danish patent, but even these are
not a demonstrated success, and not
enough are being made for Englsnd's
own use, much less enough to supply
this country.
As matter OF fact, England has
been very ready with the shipping sc-
she has and we want, as a
country threatened with starvation
might be expected to be when the &C
cessories are TO be used in carrying
food to her.
- q a Tk-I.-