New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1919-03-28

the American flag will not satisfy
the American people. [ believe that
a sound policy can be put into the
form Of legislation and that it will
then form a permanent foundation on
which further provements, as the
need for them appears, can be erected.
The United States Government now
owns sos ocean-going steel cargo
ships aggregating 3,3So,41o dead
weight tons. In addition it has under
contract 1886 similar vessels Of
9,275.O06 deadweight tons. If our
present program be carried out, there
will be under the American flag next
year 1s.732.7oo lightweight tons of
ocean-going steel cargo and pas
senger ships This fleet will be the
equivalent Of almost half the mcr-
chant tonnage which plies the seas
today under the flags Of all nations
combined The Governm ent Will
own about 70 per cent. of it.
The economic Importance Of this
great fleet would be difficult to over
estimate Upon it's successful opera
ton under sound financial and ad-
ministrative plan by Niguant, cour-
ageous men who have the interest of
American industry and commerce AT
heart, depends more than upon any
other factor the future development
of our overseas trade and OF the
domestic Industries which feed it.
With this brief review of the situa-
ton, I now submit this proposed
Plan of Operation.
That the ships should be sold to
and operated by American citizens
under no restrictions other than the
terms of the bill of sale and the
fixation OF maximum freight rates,
either AS provided in Section is of the
act approved Septem Der Z, 1915, as;
may be agreed by the government
and the operator in specific instances.
The ships should be sold at price
which fairly reflects the current world
market for similar tonnage.
Twenty-Five per cent. of the pur-
chase price of each ship should be
paid down, the remainder falling due
and payable in graded annual install
ments over period not exceeding 10
wears. The government should take
and hold a mortgage for the unpaid
balance, charging interest thereon at
the customary commercial rate of 5
per cent One-fif of this interest,
representing the difference between
the customary commercial rate,
rine development fund to be describ-
ed herea fter. .f f.
The purchase should me required
to agree to insure and keep insured
with an American marine insurance
company his equity in the vessel, and
because the American marine insur-
ance market has not at present suffl-
cient resources to underwrite all the
vessels the government has to sell, the
government should carry in it's own
fund, as at present, but for purchas
er's account, hull and machinery. in
surance covering that part of the YES
sci for Which payment has not been
made. Our experience in operation
shows that the government can carry
this insurance for at least l per cent.
less than the open market rate. How
ever, it is proposed that the open
ct rate be charged, and that the
difference be paid into the merchant
marine development fund.
1t is understood that no transfer Of
q vessel to foreign registry should be
permitted without express permits
sion of the government:
Each purchaser who wishes to
| operate in the foreign trade should be
| obliged to incorporate under federal
| charter, the necessary legislation for
| which should be passed by congress
| without delay. Such q charter should
! provide that no stock shall be issued
| in excess Of the money value actually
| paid in on vessel property. and that
| no stock can be issued or transferred
! to IN alien.
1t should also provide that one