New-York tribune., 1919-03-28
Urges Private Ownership
and Measures to Stop
Watering of Stock and
Making Huge Profits
Wants Americans
To Have Free Rein
Shipping Board Chairman
Makes Two Addresses
on Shipping Project

udANo W. AaSdI NSSCS
on Shipping Project
in two addresses in New York City
yesterday Edward n. Hurley, chairman
Of the United States Shipping Board,
outlined plans for establishing the new
American merchant marine and en-
phssized points he considers essential
to the successful operation of 16,OOO,-
. 900 tons of ships on peace time basis.
Mr.. Hurley's first speech was to
guests at luncheon at the Biltmore
Hotel given by Grosvenor B. Clarkson,
director of the United States Council
Of National Defence, to the chairman
Of the United States Shipping Board,
while his second one was to members
Of the National Marine League last
night at the Commodore Hotel.
Chairman Hurley declared for pri-
yate ownership of our merchant ma
rine and such safeguards as would ef-
fectually prevent the watering of stock
and exclude the possibility of it's being
used to develop large private fortunes
The plan of operation outlined bv
the chairman follows:
Against Any Restrictions
| "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 fxa-
tion of maximum freight rates, either
as provided in Section 1S of the act
approved September 7. 1916, or as
may be agreed by the government
and the operator in specific in
stances.
J THE ships should be sold at
price which fairly reflects the
current world market for similar
tonnage. - ~
I 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
instalmeits over period not ex-
I, ,yeedihg ten years. The government
Should take and hold mortgage for
the unpaid balance, charging interest
thereon at the customary commercial
rate of 5 per cent One-ffth of this
interest, representing the difference
between the customary government
interest of 4 per cent and the Gus
tomary commercial rate, should be
paid into Merchant Marine Devel
opment Fund, to be described here
after.
A. "The purchaser should be re-
CURED to agree to insure and keep
insured with an American Marine
insurance company his equity in the
vessel, and because the American
marine insurance market has not at
present sufficient resources to under
write all the vessels the government
mas 10 sell, the government should
carry IN its own fund, as at present,
ouf tor purchasers account, hull and
mseninery insurance covering that
Part of the vessel for which payment
mas not been made. Our experience
IN operation shows that the govern
ment can carry this insurance for at
ieast per cent less than the open
market rate. However, it is proposed
'hat the open market rate be charged
ana that the difference be paid into
me Merchant Marine Development
Fund
transfers To BE Controlled
: 1T ls understood that no trans
Ter Of vessel to foreign registry
'aouid be permitted without express
permission Of the government.
& Each purchaser who wishes to
operate in the foreign trade should
0s oeIiged to incorporate under Fed
s'ai Charter. the necessary legislation
'of which should be passed by Con
s'ess without delay. Such charter
"'aia provide that no stock shall be
issued IN excess Of the money value
s''aai'y paid in on vessel property,
s"a mat no stock can be issued or
transferred to an alien.
Z 1T should also provide that one
member of the board of directors
W eaen company shall be named by
~ government. This director should
T no salary, either from the
aNahship corporation or from the
.yfsfnment. He should receive only
'As customary directors fee for each
meeting he attends.
b ahs same legislation should pro-
Vde for periodical meetings Of
.ssse goysznment-name directors in
-, ~ city Of Washington, where they
., Ia constitute an official body which
- ~ sonier with and advise the Ship
.. ..as Hoard, or other designated gov.
!. As agency, upon problems arising
!, y questions affecting the welfare
sss American rnerchan. marine