The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-13
HURLEY URGES U.S..
!: TO SELL ITS SHIPS
a 81
Outlines to Congress Plan for
Adequate Merchant Marine
! Under American Flag.
OPPOSITION BY STEVENS
Disagrees With Fellow Mem
bers of Shipping Board on
- Vital Features.
Special Dsspatch to THE Sun.

iVn Special Dtspafch to The Sun.
WARRINGTON, June 12.-Bdward N.
Hurley. chairman Of the Shipping
Board. laid before Congress to-day the
policy which the Board believes should
be adopted to insure an adequate mer-
chant marine under the American nag,
with an outline Of the legislation and
procedure believed to be needed to carry
Il out. Only Raymond B. Stevens,
member of the Board, disagreed with
any of the vital features of tho Board
plan.
While this plan was being laid before
Congress through the Senate Commerce
Committee, the House Merchant Marine
Ccmmittee ordered a comprehensive in
vestigation into special phases of the
merchant marine situation. Hearings
In this industry will begin in about two
weeks Chairman Greene (Mass) an
M unced that all existing laws and pow
ers found to be helpful would be
strengthened and those harmful to
proper development OF the merchant ma
fine otherwise dealt with.
The resolution adopted by the COM
fnittee provides for investigating opera
ton of vessels by the Shipping Board,
,nevigation laws war time merchant ma
ifine legislation, marine insurance. postal
convention subsidies. Government oper-
alton and ownership, Government SUI
tpcfNtslOH oI ITelbHI ana cndftet rates,
relations Of railways with shipping. port
end harbor facilities and manning of
vessels.
"PoIicy" of Skipping BOARD.
\ The Shipping Board. under the head
OF policy" wrote:
THE Shipping Board recommends
private ownership and operation as a
fundamental policy for commercial ship
DinR The GnVaFnnaenf ahnulA fhara-
lore, contemplate retirement from COM
mercial shipbuilding, ship-owning and
ship-operating activities at the earliest
Gate which may be convenient and
practical, in order:
ITO give our overseas trade the full
peneft of competitive service:
ITO leave steamship operators free to
render this competitive service and
TO impart to present and prospective
steamship operators that confidence
which they must feel before they can
be expected to invest their money in ex-
listing ships, and to place the orders for
new ships without which the outlook for
the American shipbuilding industry will
not be encouraging"
n No other ships should be built by the
Government than those now partly COM
pleted. the letter declared, and those in
GUIDED in the new programme except
such vessels as may be needed to bal
ance the fleet" The Government should
adopt and rigidly follow a plan for dis
posing of its merchant ships to private
'owners. 1t declared, and during the
i.period when ships are being sold the
ftGovernment should handle the unsold
ships in manner which will not per-
init their operation to react unfavorably
ltupon the operation of the ships which
have been sold and will definitely tend
to stimulate the purchase of more ships
by private operators" ,.
IS This double purpose could be accom-.
plished through assigning unsold ships
TO operators for limited periods on terms
switch Will not tend to discourage pur.
chase of the vessels. This would enable
the United States to take care OF its shir
investment while any remain on Its
hands. II was pointed out.
Following this plan would place In
the hands of the Government a mobile
tonnage reserve with which to open ant
develop new avenues for American com
merce. This would not involve any ex
penditure of Government funds, It is be
heved, outside of the regular fund.-
sought for the Shipping Board.
Legislation Ia recommends.
To carry out this plan the foilowin,
Legislation was recommended in the let
ter:
l. Power to sell to American citizen
~ current world market prices such stee
vessels as may be designated by tn
President from time to time, rs per cent
of the price to be paid on delivery, tn
balance to be paid in graded annual in
stalments for period not exceeding tel
years The President would hold mort
cages for the unpaid balances on ships
:. Power to sell Government owne,
vessels to foreigners at prices not lowe
than those charged American citizen.
This power would extend only to Goa
burning steel ships under 6. 900 tons n
may be undesirable in the America
merchant marine. Power should be give
ffo use the money received from sue
sales to construct such ships as ar
needed to balance the American mer
chant marine.
To Keep Them All American.
Under the head of Federal Charter
the letter says:
Each purchaser. manager and opera
TOR Tor Government account or operate
for private account who acquired title I
or otherwise operates in the oversee
trade any vessel sold, owned or char
tered under the legislation now in que.
lion, should be required by law to be ir
iicorporated under Federal charter. Cor
gress Is requested to authorize such ir
corporation and to include In the law tn
requirements that:
"All stockholders shall be citizens {
the United States.
capitalization shall be limited
property value, plus working funds
mo additional security shall be 1.
sued without permission from the ShiI
ping Board or such other Governmer
agency as may be designated by law
perform its present duties.
During the period in which the Go,
eminent owns equity in the property {
the corporation the board OF director
shall include one director appointed b
the Government. This director sha
draw no salary either from the corpora
ton or from the Government. He sha
be entitled TO receive only the customar
directors fee for each meeting he a.
tends"
r. Under Merchant Marine Developmer
Fund" the letter states:
cit has been Indicated that this MIA