The Washington times., 1920-06-02
j. S.
GRIP ON SHIPS
Measure Before Congress Elimi-
mates 100 Per Cent Ameri-
can Ownership.
MAY SELL TO FOREIGNERS
Proposed Building Budget OF
$5O,000,000 Is Cut
In Two.

Senate and House conferees today
reached an agreement on merchant
marine legislation.
The bill as agreed upon provides
that rs per cent. of the stock of coast
wise shipping companies shall be
owned by Americans, and that the
controlling interest in vessels engag-
ed in foreign trade shall also bd
held by Americans.
The original bill required 100 per
cent American ownership Of vessels
engaged in coastwise trade. and
seventy-five per cent American own
ership of those engaged in foreign
| trade.
Fight Due On Floor
| These provisions for American
| ownership and control have been .
I mittee, and strong opposition to the
clauses which loosen the American
grip on the nations merchant marine
| is certain on the floors of both
houses.
The bill also provides that the
Shipping Board may dispose OF the
American merchant marine to foreign
purchasers If, in the opinion of tho
board, it is impossible to sell them
| to Americans. 1t requires that hve
| of the seven members Of the board
approve of such sale, and incorpor-
ate their reasons for supporting the
sale in the minutes of the board.
| LEGISLATORS concerned with the
| American merchant marine fear the
possibilities that lurk in this pro-
vision. They point out the likeli-
hood that the shipping Board will
be allied this summer with recess ap-
pointees. who will have power to sell
! these ships, and that Congress Will
have no power to pass on their mp
pOintment.
| Cut Construction Fund.
| The bill further provides that
fund of s25,000,000 a year is to be
used in the construction of new ves-
sells. at the discretion of the Shipping
Board. The amount for this item was
placed at s50,000,000 by the Senate,
but the Senate conferees were forced
to compromise by reducing it by one
half.
The bill provides that the board is
| authorized and directed to sell as
soon as practicable, consistant with
good business methods and the OBJ
jects and purposes to be obtained by
this act, at public or private competr
tive sale after appraisement and due
advertising, to persons who are citi-
zens of the United States vessels in
the control of the board.
The bill provides that no sales shall
be made on any terms other than
would prompt or Influence a prudent,
solvent business man in the sale of
similar vessels or business property
which he is not forced to SELL"
Foreigners May buy.
The senate provision that no snlcs
shall he made mt n less price than
the costs Of reproduction after de-
| probation L. deducted, was stricken
from the bill by the conference COM
| mittee.
| The amended bill provides sale to
| foreigners, with the restriction that
mo such sale shall be made unless
the board after diligent effort, has
been unable to sell, and in accord
ance with the terms and conditions
of this act relative to sale to citizens,
and has upon the minutes of the
board the affirmative vote of not
less than five members, determined
to make such sale, and II shall make
as a part of its record a full state
ment of It's reasons. for making such
| sale"
| Have is Years To Pny.
! The sale conditions provide that
citizens may pny In nftcen years, with
m rnte of interest on the ar-t payment
! TO he axed by the board, while for
rigpers must pay In ten yenrs, with
interest not less than per cent on
the Hrst payment.
The Hoboken piers are turned over
to the shipping board January l, next,
while other property in the hands OF
the President and acquired during
the war. may be turned over at the
Presidents discretion.
The bill abrogates treaties with
foreign nations which prevent the
placement Of discriminatory duties on
imports and exports carried In for
| eign bottoms.
| The extension Of the shipping mon
| opoly to American ships in the Phil
lippine trade under the same coudA-
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