New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
u. S. to Use Ships
Being Built on
Foreign Orders
State Department Approves
Communicating Plan of
Bernard II. Baker
From The Tribune Bureau


communicating ships now being built
in this country for foreign orders,
which looks to the operation of the
ships by their foreign would-be pur-
chasers, under the direction of the
United States as to cargoes and desti-
nation, has been laid before the Ship
ping Board by Bernard N. Baker, of
Baltimore, formerly member of the
board, and has been approved by the
State Department.
Mr.. Baker submitted his plan at the
request of several members of the
board. The plan provides for an agree
ment with the present owners of the
ships under construction for their OPP
Grafton by the owners under the di-
rection and control of the United States
Shipping Board as to character Of
cargo, rates of freight and ports Of
sailing. The United States government
would guarantee to the owners 10 per
cent on the capital invested in the
ships. in addition to providing the war
risk insurance, leaving to the owners
the right to secure their ordinary ma
rine insurance. There would also be
depreciation, or wear and tear al
lowance. of per cent a year on the
original cost of the property.
Ships Merely Loaned
The plan looks to restoring absolute
control of the vessels to their foreign
owners at the end of the war, and pro-
vides a carefully worked out but COM
plicated scheme for equalizing condi-
tons so that if the price of ships
should be very low at the end Of the
war the burden will not fall entirely
on the foreign owners. Mr.. Baker
pointed out that tonnage was now SELL
ing for $3.50, which he was confident
would not be worth more than 500
after the close of the war.
This plan will give the Shipping
Board" he said, absolute control Of
rates, and at the same time If it is
necessary to sacrifice the earnings Of
a ship in order to obtain equitable
rates, such a proceeding would be en-
tirely within the control Of the Ship
ping Board. There would be no COM
plications with foreign governments. as
they would receive their tonnage back
Oh a cost basis, less actual wear and
tear, which would be an equitable ar
rangement unless depreciation values
following the termination Of the emer-
gency and war conditions assumed an
Importance not now anticipated.
Friction Avoided
ain this way there could be no pos
sible friction. 1t would not fall upon
the Shipping Board to arrange for the
officers and crews, which would be so
difficult to get, but at the same time
it would give them absolute and COM
plete control of the movement OF the
tonnage necessary to our allies In TINS
most important crisis.
'If, for any reason, an owner, or
the government he represented, OF a
ship now under construction or con-
tracted for, objected to such arrange
ment there would be no difficulty
whatever in agreeing upon valuation
and the purchase Of the ship, but II
gives them the opportunity of securing
tonnage for future use and would not
Law our country open TO the charge
that we were taking advantage OF their
necessities TO secure future tonnage
under our own flag for our own use.
ain addition TO this 1t would place
our country in the accumulation OF
tonnage. which il is so DESTROYS OF Sc
euring. in an excellent position as, at
the Termination Of the present emer-
eency. they would be in position 10
purchase tho tonnage, II desirable ior
their uses, and at the same time our
ing all the crisis they would have ap-
,oiute and complete control OF rates,
movement of ships, and all matters
pertaining thereto.
Would Work With Allies
~Th,s should be done in cooperation
with our allies, who also have similar
bodies TO control transportation, nota-
bly England and France. NO advan.age
could Be taken of our government IN
the way of what Is fair basis TOT
ssniry,- because the Shipping Board
uorH have under its own control many
IN. now owned and 10 be acquired
Nv Them. which would always make q
basis Of earnings for comparison; In
Mi. way such comparison could Do
made on a basis of earnings between
tel and wooden and composite con-
struction. ,,. Nth
aAny one thoroughly familiar wis a,
the shipping business would Know tnss
II Ia not a very serious quesuon 70
d.x-rpnine the actual voyage earnlhes
- anv ship and expenses. rs every
properly equipped merchant mar, a,s
oIwsy. D had. telling within a very short
,iros after the termination OF voy-