The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1919-03-28
HURLEY DEMANDS PRIVATE ownership
f57THE AMERICAN MERCHANT MARINE.


engaged in the shipping business in
the United States are Of that character
But there is not enough OF them. We
need many more And 1t is clear that
the number of such men can be greatly
increased only under conditions Of pri-
yate initiative"
The impossibility of providing rules
for the operation Of tramp steamers,
which must carry return cargoes to be
profitable and which may have 10
make triangular or polygon voyages
in order TO Keep under load, was said
70 be another argument for private
ownership.
NO rule can be laid down which
a government employee could follow,
for the conditions are constantly chang
ing" Mr. Hurley said. "a careful
consideration Of these arguments has
led me to the conclusion that the ships
should be sold to and operated by the
American citizens under no restriction
other than the terms of the bill Of
sale and the fixation OF maximum
freight rates.
The ships should be sold at a price
which fairly reflects the current world
market for similar tonnage.
Twenty five per cent of the pur-
chase prize Of each ship should be
paid down the remainder falling due
and payable in graded annual install
nents over period not exceeding ten
years. The government should take
and hold mortgage for the unpaid
oa'arce, charging interest at the rate
Of !i'e per cent. One fifth of this in.
terAs', representing the diff erence be.
tween the customary Govrnment inter-
est Of four per cent and the customary
commercial rate should be paid into a
Merchant Marine Development Fund
THE purchaser should be required
to agree to insure and keep insured in
an American Marine insurance com
pary, his equity in the vessel, and be-
cause the american MARIE insurance
market las not at preiert sufficient
resources TO underwnt: all Tia. vessels
the government has - col. the Gov
trnment shculd carry e is own fund,
rs at lretent, bu. .or pl!cfa> eI's &C.
count, hall and m2cp,e:y in:urance
covering that part Of the vessel for
which payment has not been made.
Our experience in operation shows that
the government can carry this insur-
ance for al least one per cent less than
the open market rate. However, it is
proposed that the open market rate be
charged End that the difference be
paid into the Merchant Marine DeVel-
opment Fund
ut is understood that no transfer of
a vessel to foreign registry should be
permitted without expires permission
o. the government.
Each uIchaser who wishes to oper
ate i'll tie foreign trade should be
Obliged to incorporate under Federal
charter, tho necessary legislation for
which Should be passed by Congress
without delay. Such charter should
provide that no stock shall be issued
in excess OF the money value actually
paid in on vessel property, and that
no stock can be issued or transferred
to an alien.
ut should also provide that one mem
be 70 fthe Board Of Directors for each
company shall be named by the Gov
eminent. This director shoul draw
no salary, either from the steamship
corporation or from the government.
He should receive only the customary
directors fee for each meeting he at
tends.
"The same legislation should pro.
vide for periodical meetings Of these