New-York tribune., 1921-01-15
Controversy Is
Waged ON Plan
To Sell Ships
sillen, Former Payne and
5 Benson Assistant, Says
Southern Operators Do
Not Represent the South
IS Boats in Receivership
selling Basis Dangerous to
Development of Routes,
Declares William Allen

Much oppos sition has developed in
Washington to the plan presented to
ne Shipping Board by Commissioner
Suy D. Goff to dispose Of the steel
argo vessesS belonging to the board
t approximately S6750 per dead
eight ton, which is about one-third
+ the construction cost. Mr.. Goff's
Ian was prepared in collaboration
18th others. including Martin J. Gil
en-, formerly assistant to Chairmen
'ayne and Benson of the Shipping
ioard.
Critics of the plan point out that
lr. Gillen is financial adviser to j.
lercadante, president of the Green
tar Steamship Corporation. This
oncern, it is added, has bought steel
argo boats from the Shipping Board
t prices ranging from S1G5 to $210
er deadweight ton and would be
enefciaries if the Golf plan were
dopted because of the stipulation
rat all contracts made with pioneer
urchasers of Shipping Board boats be
ecalled and the purchase rewritten on
he basis of the new prices"
1t is stated by critics of the Gof
Ian that the adoption of the new
lrices would require the government
o refund to the so-called pioneer pur-
hasers many millions of dollars. AS
n example, it is said, the Shipping
'oard might be required to reimburse
II credit the Green Star Steamship
100000 on its purchase of three
rAnI bl,
ieadweight tons.
Gillen Answer Critics
In statement issued yesterday by
ir. Gillen in reply to criticisms OF
he Golf plan he says:
Il am the financial adviser of about
inc companies and persons. One is
'oseph Mercadante, owner of the ma
GRITTY of the stock of the Green Star
corporation. None of the other COM
,an!es or persons is interested in
he shipping business. The question
efore the American people is the es-
abiishment OF & proper price on Ship
ing Board boats and the establishment
L a privately owned merchant marine.
'ersonal attacks only becloud The
ssue."
Mr.. Gillen also points out that the
pan Pto'A0CS tildt Ill pIOItS
made on the boats while in the hands
7 the pioneer purchasers be taken by
re government and that this includes
ne large profits made on the high
evel of freight rates prevailing at
he time Of pioneer purchases.
Golf Plan Objected To
One of the chief critics of the Gof
olan is William Allen, representing
Important commercial organizations in
lew Orleans. Mr. Allen points out that
ne plan proposes that in making sales
t the low prices new trade routes
Mould be protected as far as possible. ;"
mis- he regards a dangerous" and
OF in accord with the spirit of the
Aerchant marine act, which makes it
Mandatory upon the Shipping Board
o develop and maintain new trade
outes until their success is assured
+ their feasibility determined. The
esuis Of the Golf plan, he says, would
e adverse to routes being maintained d
rem Gulf, South Atlantic and Pacific
'orts.
In his statement Mr.. Gillen says
nat the American farmer, miner and
Manufacturer Of the Mississippi Val
" VIII not BUY. manufactured products
pay freights on : wartime basis,
S--tP NGiuts CcunOL De mann
'simed on war level. He adds:
The cotton planters of the South
md the wheat growers of the West
Rlll not sustain Mr.. Allen, who repre-
'ents some Southern operating com
1ahles. There are about ITS Shippin e
ooard operating corporations, opa-at-
ng some 1,400 Shipping Board boats
an approximate value, at to-day
sIices, Of $l,500,O00 apiece, each cor
'oratlon is owned by two or three per-
,ons IN the port towns of the United
sla,es. Little or no money is invested
the majority Of these operating com
'ahies. They are paid profit on their
sorx, the government absorbing the
osaes.
Shipping Board Criticized
The mandate of the American pub
ac Is to sell the government owned
oats and establish trade routes as far
ts possible. The Shipping Board has
,os up 70 to-day made an analysis of
ne boats necessary for trade routes
md those that are available for sale,
-nongn there are $50 Shipping Board
aoass lying idle in New Yor!: Harbor.
ne operating companies Of the South
n ports do not represent the inter
Sss OF the cotton planters, producers
manufacturers Of farm and manu-
aeturtng statesn