New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-04-16
Business Men
Urge Private
Ship Control
Legg Says Merchant Marine
Must Be Maintained or
U. S. Shippers Will
Have to Pay British Debt
Tentative Price Fixed
Figures ON Profits of YES
sells Operated by Board
Are Announced at Parley
By Theodore Nj. Knappen


WASHINGTON, April 15-Warned
by Alexander Legg of the international
harvester Company. of Chicago, that
=. United States must either keep up
its present great merchant marine or
pay the war debt of the United King
dom. a score of representative business
men OF the country to-day advised the
Shipping Board to sell its ships to
private owners at prices and on condi-
tons that would insure the successful
operation of them under the American
flag.
On suggestion of Edward ~ Hurley,
former chairman OF the Shipping
Board, Eugene Meyer, of the War
Finance Corporation, was requested to
appoint a finance committee, repre-
sentative of the conference and Treas
ury Department, to work out scheme
for financing the purchase of the ships
by the weaker purchasers.
Mr.. Legg explained that before the
war the American shipper was able to
play off" the British mercantile
marine against the German and vice
versa; but now the only consequential
foreign merchant marine in the world
is the British, and that unless the
United States keeps up the fleet created
by the war il will have to depend
solely on British ships in its foreign
commerce and will be charged enough
IN the end to pay Off the British war
debt
Represent Shippers Interests
The business men who attended the
conference were invited by Chairman
Benson of the Shipping Board, in order
that he might have the benefit OF IT,.
ADVICE of business interests which ar.
not themselves financially interested
IN shipping, but represent rather the
Shippers and public interest of the
country.
After day of informal talk it was
evident that the conference was unani-
nous in the belief that the main con-
sIderation in disposing of the fleet is
that its maintenance and successful
operation hereafter must be insured
and that the price and terms of sale of
the ships should be subordinate to that
end The sentiment of the meeting also
was unanimous that after the sale of
the ships the permanency of the Amer
1can merchant marine must be protect
ed by suitable legislation, even if sub
sldles were necessary.
Gny doubt the business men may
nave had as to private owership of tn
ships was dispelled by the tinaDcia
statement submitted by the board, gi1
ing for the first time comprehensive
idea of the results of operation. Thi.
statement showed a total net profit O.
Sl33, 100000 on owned ships since tn,
board began to function as a ship oper
ator, without charging off depreciation
put the subtraction of per cent annua
depreciation would leave no profit.
Total Net Revenue
The total net revenues Of the boat,
from operations was given as $500.
100000 and the total net profit from,
owned and reuuisitioned vessels as
1892, 1873, 900, of which about $50 600 OOC
was contributed by the latter. Othe,
statistics showed that the emergency
fleet now comprises .49S vessels afoat
with 399 building AS of June, 1919
the lightweight tonnage Of the Ameri-
car steam feet was 1899 900. against
the United Kingdoms 24518oO0 The
United. States launched 6,32l 900 tons
of ships in 1919. which was almost as
much as the entire American steam
tonnage in 1914.
Three plans of selling the ships were
laid before the conference, as follows ::
First. all cash with discount of pa
per cent from list prize: second, %
per cent cash, 1914 per cent in six
months and again in twelve months and
then 61s per cent semi-annually for
-FOUR years, with interest on deferred
payments at five per cent; third. char
ter purchase plan, 2h per cent down
and SO a lightweight ton a month in
advance, beginning with delivery. until
such apyment shall aggregate 40 per
cent Of the purchase price, plus five
per cent interest, title then to pass
and balance to be paid in semi-annual
instruments OF five per cent, with in
terest at five per CENT
Tentative Price list
The board also submitted a tentative
price list ranging from $500 to 1855 a
ton for steel vessels, subject to de-
duction of depreciation since time of
completion, at 10 per cent foy the first
year. 8 per cent for the second, 8
per cent for the third and so on Up
TO date 266 ships have actually been
sold for 100000
1t was calculated that by July. 1921
the world supply of ships would be
equal TO the demand and tina: ship
ping rates would decline. Admiral Ben
son pointed out, however. that at pres
tnt shipping companies were asking
for more ships for agency operation
than che board can supply.
Senator Warren, chairman of the
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