Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-04-26
ADMIRAL BENSON
PLANS THE SALE Of
SHIPS BUILT BY us.
Also Will Lease Seized Ger
man Vessels Pending Court
Action on Injunction.
BY DAVID LAWRENCE.

Everybody will have an equal
chance to buy the ships built by the
United States. and they will be sold
on a uniform basis of valuation and
on such terms as will permit the op-
orators to distribute payments over q
period Of twelve years. Only those
persons or companies who can satisfy
tho Shipping Board not merely of
their Abaltty to pay the initial cash
tons periose.l1 s S Hfff ss snsir s,v. oslE: sn:
Furthermore. the Shipping Board 10
eoing ahead to lease the German
ships seized in American ports at the
outbreak of the war. These leases
are being made irrespective of the
by William Randolph Hearst, which
is now being appealed to a higher
court. But the persons who obtain
the leases must guarantee to buy the
vessels in the event that the courts
confirm the Shipping Boards judg-
ment that they may be sold just like
other craft built by the Emereency
Fleet Corporation.
Policy Outlined BY Admiral Benson.
The foregoing principles of shipping
policy were given the writer by Admiral
Henson, chairman Of the Shipping Board,
and represent the outline Of policy thus
far Formulated. The sales program is
not yet worked out in detail. A COM
mtttee Of four-Eugene Meyer of the
Legg, vice president of the international
Harvester Company: Owen Young, vice
president Of the General Electric Com
pany, and Charles B. Warren of De-
troit, republican national committee
man and a former aid to Cen Crowder
>
service system during the war-are
mapping. out the sales policy. They
were selected out Of a group of business
men called here by Admiral Benson to
confer with the Senate and House com
mlttees on commerce and merchant ma
ping Board.
The program was left to such a COM
mlttee to draft because 1T was realized
that the strain on the money market
would be dangerous if the ships were
onered Tor sale in the open market with
payments to the government as we'll as
the credit market today. The fear was
expressed that would-be purchasers
would borrow large sums from the banks
70 make the initial payments and then
alarmed about deferred payments #
freight rates dropped or international
trade was disturbed by factors not nn,.,
foreseen. nv"
rate OF Payments Fixed.
So 1t has been virtually decided that
~ per cent cash payment will be
required and per cent ever .j1
months until the end of the second
paid. The remainder will be co1iect.
ed on payments of per cent per wear
for ten years. An interest charpe NJ
5 per cent will be charged on defer
red payments, SO as to provide an
incentive for earlier payment in the
event that the purchasers make money
on their venture.
The prices of the ships have not We,
been determined. but they will he
and will be based upon a cost
per ton attractive to those who Dc.
sire to engage in the steamship bust.
government for Its investment. mas
much as the government will retain
a mortgage on all ships until they are
fully paid for. measure of controJ
will be exercised over the treatment
given the vessels in the way of re-
profitable. limit of Is
per cent on the amount that can be
taken out of the earnings will be
placed so that the government can get
some additional payments toward its
Indebtedness.
Leased Only to Americana.
No ships are being leased nor will |
any be sold to any firms or individuals
other than those Of American citizen
ship. The Shipping Board is about to |
lsk Congress to put such q clause in !
the pending shipping act. Foreigners |
might. for instance. be permitted to |
buy into American shipping concerns !,
70 the amount Of 20 per cent. but fully !
10 per cent Of the money must come |
&yf o,nl
ership of IS per cent of the stock |
must remain in the hands of American
citizens. Congress has already pro
libited the transfer of ,Shippihs
Board vessels to foreign flags, bu.
hat is not enough. Foreigners could |
operate ships under the American
lag and devote them to their own
purposes Just a. readily as Americans
,ave heretofore operated ships under
Europeans AagS. The Shipping Board
,olicy 10 Designed to safeguard the
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