New-York tribune., 1919-02-25
Only Handful Present to
Hear Ransdell on $780,
100000 Appropriation
No Solution in Sight
Shipping Board to Have Big
Fleet With No Power, I'm
less Congress Acts, He Says
By Theodore NJ. Knappen
NeaU York Tribune
Washington Bureau

WASHINGTON, Feb. 24.-Ihe Sundry
civil appropriations bill carries $780,
100000 for shipbuilding which is more
than the entire appropriations for all
the purposes of government before the
war Yet when Senator Ransdell, of
Louisiana, rose in the Senate to-day to
discuss the vast and battling problem
of what is to be done with the far
flung fleet that these hundreds of mill
ions, the billions that nave gone before
them and the hundreds of millions that
are to follow them arc giving US, only
handful of Senators were there to
listen to him.
Senator Ransdell pointed out that the
Shipping Board now owns about half
the ean-going shipping under the
American flag, that the proportion
grows daily as new ships go into COM
mission and that in 1920 the govern
ment owned fleet will comprise more
than ID, 500 900 tons. No policy what
ever has been established or even
seriously thought out for either the
permanent operation or disposition of
this great feet, he said.
AS the law now stands, he continued,
it is in the Presidents power to sell
the whole fleet for little or nothing,
but six months after the signing of the
treaty of peace his powers will sum-
marily end He will not have the au-
thority to drive a single rivet after
that date or even to move a single
ship.
Working Under Wrong Act
Contrary to the general impression,
ne said, the emergency fleet Is not
building under the act that established
the Shipping Board and gave it power
to create corporation that should en-
dure until five years after termination
of the war. 1t is building under the
terms of the deficiency appropriation
act of June Is, 1917, which delegates
the building, operating and disposing
power to the President, but terminates
it six months after the termination of
the war
So, in about seven or eight months,
both building and operating must stop,
unless Congress acts in the meantime.
The only action Congress has taken
is to provide the money for the con-
tinued building Of the ships, according
to the emergency fleet programme.
There has been no attempt to alter that
programme, no attempt to inform the
Shipping Board what Congress expects
of it-nothing but blind continuation of
building-a continuation that was large
ly inevitable and of great industrial i'm
portance at this time. By the time the
delegated power expires the Shipping
Board will be the owner of six or seven
million tons of shipping, and with no
power to do anything with it.
Senator Ransdell reviewed the vari-
Gus plans that have been advanced for
the future of the government ships, one
or some of which will have to be adopt
ed in the near future if we are to have
real merchant feet instead of col
| lection of ships rusting at their docks
Summarized, these different plans are as
follows:
First-Complcte government owner
Second-Ownership and operation
through a public corporation con-
trolled by the government, with or
without minority representation of
private interests.
Third-Government ownership to
be retained and the vessels to be
manned and equipped by it, but pri-
vate shipping companies would direct
the business on a commission basis.
Fourth-The government to retain
ownership, but private companies to
man, equip and manage the vessels
as the governments agents.
Ffth-The ships to remain in the
hands Of the government, which
would completely equip and man them
and rent them to private companies,
the latter meeting all the business
expenses and taking all the proceeds.
Sixth-Government ownership and
"bare- boat" charter to private COM
panies.
Ownership by Corporation
Seventh-Ownerships could be
transferred to a large corporation
created for the purpose, the govern
ment guaranteeing minimum return
in order to make the stock attractive
and taking all the proceeds above a
certain point.
Eight-Outright sale of the vessels
on terms and at prices sufficiently
low to attract investors, the vessels
to be distributed among many small
companies. With any such plan
would have to go legislation de-
signed to assist the companies and
equalize competition, including such
subjects as subsidies, preferential
tariffs, preferential railroad rates,
etc.
Ninth-Combination Of the fore
going plans, as, for instance, the
proposal that as many vessels be
sold now as purchasers will buy on
the basis of British cost of construc-
ton, the remaining ships to be al
located to the purchasers to operate
in proportion to their purchases, the
earnings of the purchased ships and
those of the operated to be pooled
and the net proceeds to be dis
tributed pro rata between the gov-
ernment and the companies.
Senator Ransdell did not say so, but
it is understood that this is the plan
proposed and favored by the large ex-
listing American mercantile marine
corporations, and that bill embody-
in the essence of this plan will be
introduced in Congress.
In outlining the proportions Of the
problem that must be settled soon
Senator Ransdcll said:
an the year Immediately preceding
the European war, the fiscal year end
ing June 80, 1914, less than a tenth of
the water-borne foreign trade of the
United States was carried in American
vessels; more than 80 per cent was
carried il. foreign vessels. Soon after
some shipping experts made a calcula-
tion of how large a merchant marine
the United States would require in
order to carry on its own vessels sc
per cent of it's water-bornc foreign
trade. 1t was estimated that from six
to ten million gross tons-8, 100000 to
100000 deadwcight tons-would be
required. The figures seemed far be-
yond the widest range Of possibility
The national foreign trade council in
u, report Published early in 1915, made
TINS not too sanguine forecast:
AT 81 TINA Whnn rradi rfiopa uro