Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-03-28
SELL THE SHIPS"
IS HURLEY'S IDEA
Opposes Federal Owner
ship of Shipping Boards
Merchant Fleet
NEW PARTY PROPOSED
Marine League President Sug-
gests That Commerce Sit
uation Demands 1t

New York, March 2s. - Edward n.
Hurley, chairman of the United States
shipping board. in an address before
the National Marine League here last
night announced his opposition to gov
ernment ownership CT the vessels built
by the shipping board and outlined his
( plan for their sale to private owners.
Creation OF new political party, to
be known as "the Maritime party of the
United States was urged by P. II. w.
Ross, president of the National Marine
League. Asserting that the Democratic
party was kept in power for nearly 100
years when the need of the country was
"agriculture' and that the Republicans
had held sway when "manufacture" was
the cry of the times. Mr.. Ross asked,
.who is there shall deny that 'distribu-
ton shall be the guiding star of Ameri-
can politics for years to Gomez
other points made BY Mr.. Ross
were that training Of officers for the
mercantile marine should be conducted
BY both state and federal governments
and that, to impress on the youth of the
country that shipping was the key in
dustry," an Intercollegiate branch Of the
league should be established.
Mr.. Hurley said, in part:
'+The operation of n fleet represent
{ ing $4,000, 900 tons of ships, 70 per cent
of which Is owned by the government.
is a problem that should be carefully
considered from every angle.
Opposes Federal Ownership
"I am personally opposed TO govern
rnent ownership, except as last re-
sort.
"Government ownership of this largo
feet resulted autOmatiCally II VIC arc
4. 10 return TO private ownership. tho
transition must be made under such
conditions as will completely safeguard
the interest of the public. If this fleet,
built at government expense, were to
be used now merely for the advantage
of groups of ship operators, with suf-
.ficient capital to purchase the ships from
the government, ] would uuhesitatingly
advocate the retention Of the whole
feet by the government. ! would submit
this proposed plan OF operation:
'"That the ships should be sold to and
operated by American citizens under no
i restrictions other than the terms OF
tho bill of sale and the fiXation of maxi
mum freight rates
"The ships should be sold at price
which fairly reflects the current world
market for similar tonnage.
twenty-five per cent of the purchase
price of each ship should be paid down
the remainder falling due and payable
In graded annual installnents over n
period not exceeding ten years. The
government should take and hold mort
gage for the unpaid balance, charging
interest thereon at the customary COM
mercial ratio of per cent. One-ffth
OF this interest, representing the differ
ence between the customary government
interest of four per cent and the Gus
tomary commercial rate. should be paid
into a merchant marine development
,und to be described hereafter.
Tho Insurance Problem
The purchaser should be required 10
agree to insure and keep insured with
q an American marine insurance company
his equity in the vessel and, because the
american marine insurance market has
not at present sufficient resources to
underwrite all the vessels the govern
ment has TO sell, the government should
carry in It's own fund, as at present, but
for purchasers account, hull and ma
chtnery insurance covering that part of
the vessel for which payment has not
been made Our experience in opera
ton shows that the government can
carry this insurance for at least ! per
cent less than the open market rate.
However, it is proposed that the open
market rate be charged, and that the
difference be paid into the merchant ma
rine development fund.
ss 1T Is understood that no transfer
of a vessel to foreign registry should be
permitted without express permission of
the government.
This fund, drawn from the sources
previously indicated, should be used to
relieve such financial difficulties as may
be encountered in the development of
an adequate and well-balanced American
merchant marine"
Washington. March 2S.-The recon-
mendation of Chairman Hurley. of the
shipping board. made in a speech in
New York last night, for private owner
ship of the new American merchant
marine with government regulation,
has been submitted to President Wilson
S White House officials said today the
& President had not had time to go over
: the plan fully, but that 1t was expected
he would make the merchant marine the
& subject of a message to Congress when
II convened.