The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-12-09
TO FINANCE SHIPPING.

r
II the shipping board sells its ships. Southern
interests fear that the South will not be able to buy
SUFFICIENT tonnage to accommodate its future de-
velopment. The big shipping companies are in the
EAST they alone have sufficient finances for such
Iarge-scale purchases. Southern companies are
poorer-and many new ones must be organized
Under the ALLEGATION and rental system the South
mas been able to get along very well.
This summarizes the sentiment as developed by
the Mississippi Valley association 1t is deemed
certain. however that the shipping board will sen
the ships so far sighted business men are looking
Tor other means Of meeting the situation
the plan that has excited the most comment is
that proposed by Jules Wolbrette a business man
OF New Orleans. 1t has been put up to the Mssis-
sppi Valley association. and will in the next few
weeks be threshed out in all its possibilities
Briefly, it is for the people of the South to sub
scribe to stock in shipping lines paying therefor
with Liberty bonds and receiving guarantee from
the government of at least four per cent If the
returns greater than four per cent they would
OF course get this added benefit. But the govern
ment could guarantee at least four per cent becaus,
1t is paying AZ per cent interest on the bonds The
great mass of Liberty bond owners, thinks Mr.
Wolbrette, would not think this half cent worth
bothering about and would be glad of the oppor-
tunity to invest in enterprise Of this character
They would be willing to make this investment with
whereas
might hesitate to put out money to the principal
holders OF these securities. The bonds are now
quoted at below par but could be exchanged for
stock at par. Here is the Wolbrette plan as he
worked it out:
THE shipping board to sell to various regional
corporations, owned and controlled by private in
dividuals such ships those regions would feel
necessary for their foreign trade development These
regions. say, to be- for instance for the western
coast, another for the Gulf ports another for the
South Atlantic ports and another association for the
North Atlantic ports.
The government through the shipping board. to
be paid for such ships in cash any of the various
issues OF Liberty bonds accepted at par The gov
eminent to guarantee say for IS years interest al
per cent on the stock of such corporations unless
the indebtedness to the has been liqui-
dated prior to such time. Earnings above the guar
aee OF the to be available to the Credit
OF the stock such corporations and to be paid
not at the discretion Of the management such
porations.
The government could be paid half cash or in
Liberty bonds stated and the balance in IS years
Funds for operation to be provided in addition to
cash subscription by the sale pledging of said
Liberty bonds. This detail could be worked out later
in satisfactory financial manner.
by the foregoing operations the government gets
dollar for dollar the difference between az per
cent paid on Liberty bonds and the guarantee of
per cent could be used to pay the fleet
during the time of Indebtedness to the government
or else to pay cost of supervision of shipping
board
While this is swap. the government must some
day redeem the Liberty bonds, and in this manner
is effected quicker and this relieves the govern
ment Of the boats and enables each section pur-
chase with cash the equivalent of cash, the nee
essary bottoms to provide for the future
commerce.
In the OF the Gulf ports. subscriptions
would be received from all the Mississippi Valley
states, and estimating that slOO0ooooO0 of Liberty
bonds have been subscribed for in this section to
obtain fleet and working capital of s200o0ooo0
would call for but per cent Of the bonds issued
In the section stated