Evening star., 1920-06-02
MERCHANT Marine
BILL LD|SC0URAGES
SHIP SALE ABROAD
Measure Settled in Confer
ence Fails to Prohibit
Transaction, However.

Sale Of American ships to foreign
interests if after diligent effort the
| Shipping Board has been unable te
/ dispose of them to American is pro-
ivided for in the merchant marine bill
las finally agreed upon by Senate and
4 House conferees after virtually ar
lalI-night session.
The conferees eliminated Senate
proposals to limit the sale to foreign
interests Of ships more than ten years
old and not exceeding 5000 dead
weight tons. Both the House and
Senate provisions were amended so
as to place additional limitations
| around the board in the sale of ships
to foreigners. Under the bill IS ap-
proved not less than five members OF
the board must vote for such sales
and the board must state as part Of
it's records the reasons for sale.
| No Time Limit Set.
The bill provides no time limit in
| hich the board would be compelled
| to dispose of the government-own
merchant ships. 1t provides. however.
that the board is authorized and di-
| rected to sell, as soon as practicable.
| consistent with good business meth
| DDS and the objects and purposes to be
attained by this bill"
Americans would be given fifteen
years in which to pay for ships, but
foreigners would be allowed only ten
years, and they would be required to
pay not less than per cent interest.
! The interest to be paid by American
purchasers would be fixed by the
board.
A permanent Shipping Board Of
seven members is provided for, it's
members to be selected geographical
ly, two each from the Pacific and At
lantic coasts, and one each from the
gulf. great lakes and central west re-
gions. Not more than four members
of the board could be members of the
same political party.
Senate provisions that no sale could
be made at price below the cost of
construction at the time of making
the sale, with proper reduction for
depreciation. were eliminated
House managers receded from their
opposition to Senate amendments de-
fining the policy of the board as one
chant marine capable of carrying the
greater portion of the nations COM
merce and of serving as naval and
military auxiliaries in time of war
Authorize ship Line Plans.
Other provisions authorizing the
] board to investigate and determine
as soon as possible what steamship
! IiuSo ououlu Ot eStdDllSneQ ana
| in operation between ports in the
United States and insular possess
Sions. as well as abroad. also were
| retained. Pending the sale of the
American merchant ships the board un-
der the bill would have authority to
charter vessels to Americans for the
purposes of establishing such routes
The Senate amendment authorizing
the board to set aside annually for
the next five years $50,000 900 from
proceeds of charters and sales for
construction of new ships was chang
ed so as to provide for reserve fund
of only $25,000,000 annually
The bill also would require that IS
per cent of the stock of companies
engaged in coastwise trade be Amer
lean owned. as we'll as the majority
interest in organizations engaged in
foreign trade.
The Senate bill would have required
coastwise ships to be 100 per cent
American owned and stock in shipping
companies engaged in foreign trade
| IS per cent American owned.