New-York tribune., 1919-01-21

financial conditions are not likely 20
be favorable ~ such ventures
Second The government VIII nave to
retain the feet because at best It
could only sell the choice sh ps. being
left with The inferior ones. which
would admittedly be contrary TO the
public interests.
Third The nation must hold thc
title to the ships because only in that
manner can it be made certain chat
they will not pass into toreign con rol
The ships are necessary to the national
welfare and prosperity and as an outlet
for the commercial energy and amb-
tions of our people, as we'll as being an
element of preparedness against a fut-
ure war; and must therefore, be kept
under the American flag.
Trade Routing Advised
Having decided to retain the owner
ship of the vessels, the Shipping Board
should according to this plan, after
obtaining the necessary data for de-
cision by holding hearings and other
wise investigating the matter deter
mine on the establishment of certain
trade routes for a period, say, of ten
years These routes should not be
chosen solely with respect to profits,
but as outlets for the surplus products
OF American industry
TO The profitable routes the Shipping
board should assign suitable ships and
then sell the privilege of operating
them to the highest bidders. The price
paid for this privilege would be net
income to the governme t.
AS to the improbable routes, which
at first would be the more numerous.
III IS proposed to pay operating COM
panles fixed fee for management
all other expenses to be met by the
government and all earnings to accrue
TO the government. To stimulate the
operating companies TO do their best
TO make the routes ultimately profit
able 1T should be provided that they
would have the option at the end Of the
ten-year period of taking the ships on
Shelr routes and running them on their
own account, but would pay the United
States percentage Of the profits.
Tramp ships should be operated bv
paying fee to the operator plus a
percentage of the profits.
Subsidy Prejudice Evaded
In further presentation of his views
the official whose plan is being pre-
sented says:
l. There can be no objection to this
plan on the ground that it is granting
supSldles. because as to the first class
OF SHIPS the United States is actually
securing return on its investment,
and as to second class of ships it will
be paying only a proper charge for
the operation of the ship in lieu of
operating it itself.
"2. There would be no disturbance
with the existing labor legislation.
which, although admittedly GOOD from
the human side has been found to be a
serious handicap professionally.
5 The insurance on all these ships
VIII be carried by the government. and
mus very large sum of money an
nually saved, which ordinarily is paid
out of operating income.
q. The American bureau should be
recognized as our classification So
society and developed to point of ef-
hclency equal to that of Lloyd's.
4s 20. Under this plan, as under all
Federal Reserve banks to aid national
and other banks that establish branch
offices at ports served by the class B
ships, being those in the losing trades,
by rediscounting the bills of lading
and financing the foreign purchases.
Educational Campaign Needed
"6. In this scheme, as in all others,
the manufacturers, farmers and mer-
chants must be brought to realize the
fact that the ships viii be the property
of the government, that the govern
ment cannot get rid of them, that they
afford a means OF increasing he ex-
port trade and thus the prosperity of
the whole country. This is a slow
process, but it is a constant factor in
all schemes relating to the operation
of our marine.
6. Port facilities should be in
creased and improved as rapidly as
possible and could be done better un-
der this scheme than under any other,
because the government will be taking
care Of its own property. The charges
for the port facilities services of all
kinds should be at cost, but cost should
include proper factors for amortizing
the governments investment in such
facilities.
49, Another advantage of this plan
is that tho money which would have
to be invested in the ships, or some of
them. purchased by private individuals
from the government will be available
for development Of the farms and fac
tories that will benefit by this extra
outlet.
cat the end OF tcn-ycar period, it
is my judgment that American initia-
tive and energy will have overcome in
such a great measure the handicaps
which have heretofore retarded our
commercial development that private
ownership of the ships viii be econom-
ically possible"