New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-03
New York Chamber of Com
merce Passes Resolutions
in Favor of the Plan
Quarter of Price in Cash
Basis of Purchase To Be
Cost of Reproducing the
Ships i'm Foreign Yards

the transfer of the big emergency
shipping fleet to private ownership,
were adopted yesterday at a meeting
of the New York Chamber Of Com
merce.
The programme outlined would pro
vide for the sale of the feet at cost
not to exceed that which would be
necessary to reproduce it, at the time
of sale, in foreign shipyards The
transfer would be made on a basis of
20 per cent cash, the government hold
ing a mortgage for the remainder.
which would be paid in fifteen years,
with an interest rate Of Az per cent
The plan, as passed by the chamber,
was part of a report submitted by the
Foreign Trade and Shipping Committee
of which (. H. Outerbridge is chair
man. It read in part:
your committee offers for consider
alton the following definite proposals :
The Emergency Fleet Corporation
shall offer for sale to American owners,
personal or corporate. ships based upon
per ton price corresponding to the
price at which ships OF similar size,
class and description can be purchas ed
or built in standard foreign yards at
the time of sale.
IS Per Cent To BE Cash
The government shall receive % per
cent of the purchase price in cash and
Shall take mortgage on the ship for
20 per cent of the sale price at A.,
per cent interest, the mortgage to run
for period of fifteen years, the pur-
chaser to make payments into sink
ing fund IN such nstaments as NAV be
agreed upon so as to eXtinguish the
mortgage by the completion of its term
AT the expiration of five years from
me date OF purchase. but in no case
ia'er than January /, 1928, the pur-
chaser shall have the privilege of call
ing Tor reappraisal of the principal
OF the mortgage, the remaining unpaid
amount to be based upon the ascer-
tanned cost at that time of building >
similar ship in standard foreign wards
less proper deduction for depreciation
IN the expired time.
Any purchaser shall have the priv
iege OF anticipating the maturity dates
ana Oh paying off the mortgage in full
on any annual interest date. and shsll
nave the right at time Of purchase ia
nave the reappraisai clause omitted
from the contract.
Ihe law of mortgages on sh;ns
should pc amended to make the mort
gage proper lien so as to furnish
sound security.
VIII Attract Private Capital
our committee believes that q plan
substantially on the lines herein in
dlcated viii be helpful in encouraging
Ohe investment of American capital in
shlpplng and in giving confidence of
reasonable prospect of fair return
ana consequently of the establishment
OF permanently successful industry,
Aour committee, therefore. offers
me following preambles and resolu-
tons: ''" 'es0'o
hereas, The interests of the ma
Olon clearly require the Service OF IN
adequate merchant marine under the
American fac; and
hereas, 1T is desirable that the
ownership and operation Of mer-
chant marine should become one of our
great industries, attracting the CAPITAL.
initiative and enterprise OF ON, c;,i-
zens; therefore, be it
Resolved That as rapidly as nos
Slble, consistent with military needs
the vessels OF American citizens com
mandeered by the government should
De restored to their owners. and that
merchant vessels owned by the United
States should be sold to private citi-
zons or otherwise brought into com
n.ercial service; and
w hereas, The emergency Of war has
passed under which the programme for
the number. size and description Of
ships TO be built by the Emergency
leet corporation was determined uD-
on; be it
Resolved, That the United States
Shipping Board be urged to confc..
"ithout delay with practical shipping
men. with the view of determining
whether the ships proposed to be built
Ey the Emergency Fleet Corporation
are Of the type, size and construction
best suited TO enable this country to
compete in the foreign trade with the
merchant marine Of other nations, and
"hat changes, If any, should be made
to effect that purposes and
hereas. The interesting of private
c&pital and enterprise in the overseas
carrying trade at this time is most
desirable, but Che costs Of construction
and operation are still abnormal; and
IVY hereas, For the permanent success
OF the industry it is desirable that it
should be started under reasonably
safe auspices; be it further
Resolved, That the Chamber Of
Commerce of the State of New York
recommends TO the President, to the
Congress and TO the United States
Shipping Board careful consideration
OF the general features of the pur-
chase plsn suggested in this renort.
ard urges prompt action by the govern
ment in determining It's future policy.
III order that tho merchants Of the
country may know how to adjust them
selves as rapidly as possible TO the
changing conditions Of world business.
and upon what plans they may proceed
10 provide for the future needs Of
commerce.
Ships Called Unseaworthy
A novel sideight on the feet situa
ton WAS thrown by William H. Doug
las, an exporter, when, in discussing
the resolutions. he stated that about
half Of the feet which has been built
during the war would have to 20 into
drydocks for repairs before it could be
considered genuinely seaworthy.
ut is generally KNOWN said Mr..
Douglas, that many ships produced in
the period Of emergency have devel-
cpcd serious defects during their first
trip or two. Some have sprung plates:
others have Sustained equally vital ac
cidcnts This was TO be expected. and
hardly could have been avoided in