The sun., 1919-03-28
HURLEY PLANS
TO SELL FLEET
; TO AMERICANS
Shipping Board Chairman
Announces Scheme for
Merchant Marine.
OFFER NOT RESTRICTED
Price to Be Fixed by Cur
rent World Market for
Similar Tonnage.
L. s. TO ACCEPT A LOSS
% Per Cent. Of Purchase
Money to Be Paid Down,
Rest in Instalments.
L. s. TO ACCEPT A LOSS

Edward y. Hurley, chairman OF the
Shipping Board, presented yesterday
for public consideration his long
awaited plan for the disposition and
operation of the tremendous merchant
marine acquired by the Government
as a result of the war. He read his
Nproposal at a Biltmore luncheon given
by Grosvenor B. Clarkson, director of
the Council of National Defence, and
at dinner of the National Marine
League in the Hotel Commodore.
He said his one thought had been
ito work out a plan which would be
American in conception and adapted to
the ideals, genius, temperament and
business methods of the American
people-a plan sufficiently elastic to
serve the enormous extension of over
seas trade We have in prospect with
out having to undergo dlsorganizing
changes"
When Mr.. Hurley in the course of his
speech at the dinner. remarked that he
was opposed to Government ownership
and operation OF the merchant marine,
the statement was greeted with con-
siderable applause This attitude was
unexpected to the majority of the ship
ping men present at the dinner, as IL
had been generally believed that Mr..
Hurley was in favor OF Government
Ownership. The. remainder of Mr..
Hurieys speech was listened to in
silence for the most part, although he
was literally applauded when he con-
cluded. and the diners showed much in
terest throughout the address.
Mr. Huriey's tions.
These are his principal recommen-
dations:
That the ships be sold to and operated
by American citizens under no restric-
tions except the terms OF the bill OF sale
and the fixing of maximum freight
rates
That they be sold at a price fairly re-
fle citing the current world market for
similar tonnage" This. means that the
difference between the inflated war cost
and the price at which the same ship
can be bought in the open market would
DO automatically written of by the Gov
ernment as loss due to the war
That 25 per cent. of the purchase
sraded instalments over period OF not
moro than ten years.
That the Government charge } per
cent. interest on the unpaid balance and
should deposit one-fifth OF the income
30 derived in a merchant marine devel-
opment fund.
That the purchaser keep his equity in
the vessel insured with an American ma
rine insurance company and that the
Government insure the rest of the vessel
for the purchasers account. charging the
open market rate. Mr.. Hurley says ex-
perience shows the Government can
carry this insurance for at least l per
cent less than the open market rate
The difference would so into the mer-
chant marine development fund.
That each purchaser wishing to enter
foreign trade be incorporated under a
Federal charter providing that the Gov
ernment should name one director with
out salary for each company and that
the several Government named directors
should meet periodically in Washington
and advise the Government on merchant
marine matters.
That the merchant marine develop
ment fund, estimated by Mr.. Hurley as
amounting to $4,000 900 the first year
on a basis OF $1,000, 100000 worth of
ships, should be used to relieve such
financial difficulties as may be encoun-
tered in the development of an adequate
and well balanced merchant marine"
That no transfer OF a vessel to for
eign registry be permitted without ex-
press permission of the United States
Government
That until sold under the stated terms
all vessels should remain the property OF
.apd should be operated by the Govern
ment
| At the speakers table were H. F.
! Alexander, August Belmont United
States Senator William NJ. Calder Hol-
den A. Evans, James A. Farrell, Vice
Admiral Albert Gleaves OF the United
States Navy, John Maynard Harlan.
Henry Howard, Edward n. Hurley, Myer
! Hurley. William Fellowes Morgan,
/ Frank A. Munsey, =. II. w. Ross, Sidney
Story, F, w. Wheeler. l.. NJ. Wourgaft.
Arthur Davenport Stanley A. Sweet and
Brig. Gen. William J. Nicholson OF the
United States Army.
Fund in Place of n Subsidy.
Nowhere in his address did Mr.. Hurley
shipowners that even II the purchase
price was satisfactory they could not
because of the higher operating cost
! forced upon them by the La Toilette
law run the ships in competition with
those OF other nations unless a subsidy
| in some form was granted. Apparently
the proposed merchant marine develop
ment fund. which Is likely to be the
most discussed feature of his programme,
Is designed to take the place of a sub
sidy In cases of necessity proved by ex-
perience. Stating generally the purpose
of this fund Mr. Hurley said 1t should be
used ito relieve such financial difficulties
as may be encountered in the develop
American merchant marine"
| Mr.. Hurley was fatty against Govern.
ment ownership and operation except as
a last resort. but decidedly fN protection
by tho Government of the public's in
terest.
I'VE want the initiative and skin OF
American ship operators. but We want nc
/ Coufiuufd ON Finn pnoe