The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-30
An Ingenious Plan for the Creation
of . Mercantile Marine.


OF . Mercantile Marine.
Il In his speech Thursday night be-
fore the National Marine League, at
the Hotel Commodore, Mr.. EDWARD N.
HURLEY, chairman OF the United
States Shipping Board, made it clear
that he does not believe in a Govern
ment owned mercantile marine or a
mercantile marine sustained by Gov
eminent subsidies. In the place Of
direct Government ownership Mr..
HURLEY has worked out an ingenious
plan for giving America q privately
owned and privately operated mer-
camille marine. Briefly 1t is this:
With the 555 steel cargo ships now
owned by the Government, with the
1885 additional ships now under con-
struction and with our privately
owned cargo ships, America will have
early next year mercantile marine
Of 1872, 700 dead weight tons of steel
cargo and passenger ships. Mr.. HUR-
lET's plan calls for the snle of these
ships to private owners, on a cash
payment of % per cent. at the time of
the purchase, the remaining rs per
cent. to be met by deferred payments,
these deferred payments covering a
period Of ten years and to carry IN
terest at 5 per cent. per annum.
BY this process the Government
would become the hacker of the ship
owners and would exercise a salutary
influence in the operation Of the ships,
reserving to itself a general control
\ as to what ship owners may and may
not do In the common interest Of
America and Americas shippers. Mr..
HURLEY proposes first to write the
! cost Of these ships down to n peace
time value, charging the difference
between that value and their war
time cost to the expenses of the war.
Mr.. HURLEY figures that the money
invested in these ships, less the write
down, will cost the Government per
cent; so that in getting 3 per cent.
interest on the deferred payments 1t
/ would have 1 per cent. profit, which
should go into n special fund for the
purpose of helping ship owners-those
that need help-in establishing their
shipping routes, until such time as
they find themselves comfortably on q
profit and dividend basis.
With the loss of cargo and passen-
+: ger ships from submarine depreda-
1 tions, and with the natural deprecia-
tlon and annual death rate of ships
during the war-losses that were not
made good by new construction-Mr
HURLEY argues that for the next five
/ or six years there will be such short
age Of cargo and passenger ships that
Z all the Governments fleet of ships in
private hands should be operated at a
! handsome profit, provided we so
! amend our shipping laws that they be
advantageous to an American mercan-
/ tile marine, and further that seafar-
! ing life be made attractive to the
young men of America.
Mr.. HURLEY's optimism leads him
TO believe that after these half dozen
fat years American ship owners, by
the Introduction of broad gagged
American methods, will be able IL
Tmeet successfully the competition of
the shipping world.
Clearly every one who thinks at all
would wish TO see an American mer-
camille marine, II convinced that 1t
could be maintained on a business
basis and without recourse to indirect
taxation of the people Of America. 1t
is on this point that opinions differ.
With our higher cost Of producing
ships, our higher wage cost Of operat-
ing them and our unfavorable ship
ping laws, 1t Is the belief of most
sound men in shipping circles that
American ships cannot compete with
foreign ships except by heavy Govern.
ment subsidies; and 1t has been the
declared purpose Of America for many
years to keep out of world shipping
competition built up on a subsidy
FOUNDATION.
/ But now 1t happens that the Gov
eminent finds itself with ships enough
on Its hands. because Of the war, to
constitute a worth while American
mercantile marine, and 1t Is strongly
tempted to turn from the reasoning
Of the past and put itself to the test
Of world competition in international
shipping-not on a Government owned
and Government operated basis but
through privately owned and privately
operated vessels financially backed by
the Government. With all these ships
on its hands the undertaking may b
worthstrying. Mr.. HuHLrr Il CON