The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-28

This schedule provides for the pay
ment OF so per cent of the purchase
price In the first five years and 40
per cent. during the last five years.
Such payments would establish the pur-
chasing companies on a firm basis, and
would serve to discourage any pur-
| chaser who might contemplate reapng
large Profits during the first two or
three years. with mental reservation
TO retire as soon as present high freight
rates decline and profits cease to be
abnormal. At the same time these terms
are not so severe as to call for any
financial assistance beyond that which
usually Is accorded reasonably we'll
managed commercial enterprises in this
country
ut is important that all ships be
sold on these terms and on no others.
| II we were to deviate from this principle
we would place the big, powerful and
experienced operator In a position of
such great advantage that new blood
and. brains hardly would dare venture
into the business The American Mer-
chant Marine needs enterprising new
| companies, financially able to begin op-
erations only upon a small scale, but
determined to grow TO great size and
prosperity by dlnt OF perseverance and
| grit.
shows conclusively that 1t is essential for
American shipowners to insure their
| ships with American marine insurance
companies An American marine insur-
ance market is as vital a necessity to
an American merchant marine as is
| American capital to the steamship COM
| panies which constitute II.
1T has been indicated that the plan
! for the Merchant Marine Development
I L NN...w aaI -
certain moneys representing the differ
ence between the customary commercial
charges for interest and insurance and
the rates at which the Government. in
virtue of its peculiar position, is enabled
| TO charge. In the matter OF interest, ii
has been shown that this difference
/ would be l per cent. which represents
| the advantage over the customary COM
mercial rate of per cent, which the
Government can concede without loss in
view OF the fact that 4 per cent. is the
rates which approxmates the interest
the Government is accustomed to pay for
money it borrows In the matter of in
surance, the experience of the war pc
riod indicates that the Government can
safely carry vessel insurance at more
than l per cent, below the commercial
market rate.
! las heretofore stated. the money de-
rived from these two sources will amount
; to S14,000.000 the first year. Expert.
shipping men have carefully computed
| that this sum will be double the amount
neeoed to meet any contingency likely to
arise. This money should be paid into
/ the hands OF the Shipping Board, or 9TH
er designated Government agency. as
trustee. to be used as may be necessary
for the development of the American
Merchant Marine.
"A good idea OF the resources which
this plan provides for financing the de-
ve!opment of the American Merchant
Marine can be gathered from the follow
| ing table. 1t IS assumed that the money
will be placed in an approved depository
where 1t will draw interest at per
cent. compounded semi-annually Re-
membering that any disbursements
which may be made during the first few
years will be returned during the last
few years, 1t will be seen that the size
! OF the fund for the ten year period will
be ss3,533l70,7O.
! Total accruals 10 Merchant Marine
Development Fund during ten year Pc