New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-11
Fleets Future
Rests on Two
Board Decisions
Shipping Operators Here
Anxiously Await the
Action on Rate Revision
and Bare Boat Plan
Settlement This Week
Green Star Petition Is Be-
lieved Forerunner of a
General Demand for Aid

Two important issues will be decided
during the coming week by the United
States Shipping Board. Both are of
major dimensions and shipping opera
tors throughout the country are anx-
iously awaiting the outcome of the
discussions that will mark the final
disposition Of tonnage rate revision
and the bare boat charter plan.
The future Of the American mer-
chant marine, according to prominent
ship owners and allocated operators
here, will rest largely upon the course
that the board will adopt with regard
to the continuation in service OF its
feet. With the withdrawal of approx
mately LOO steel hulls from the high
seas a corresponding rise in trade is
certain to follow, as it will to great
extent eliminate the cut-throat compe-
tition that has existed in transatlantic
and intercoastal circles.
General Appeal for Aid
The petition of the Green Star Line
for q revision of tonnage rates IS con-
sidered by shrewd owners of govern
ment boats as the fcrerunner OF
general appeal to the board for cancel
lation of Indebtedness on the part OF
this class of operator. More than
board agrees to wipe this amount off
the books and reduce its assets &C
cordingly, the bona fide ship operator
will be placed in a better position. it
is declared, to compete with foreign
bottoms.
]. Mercadante, president of the Green
Star Line, has made proposition to
the bondholders' committee in connec-
tion with the reorganization Of that
company. He has agreed to invest
100000 in new company and permit
the control of the stock to pass into
other hands provided he is retained
as president or chairman of the board
Of directors. This offer Of financial
his successful prosecution Of a suit
against the board for s7,000,000, which
Is based upon the claim that the board
took over contracts he had with the
Italian Government through the Nafra
Corporation, and used these contracts
to the loss of the corporation. This
condition, Mercadante asserts, occurred
during the war and has never been set
tied by the government.
Harding to Have Final Word
The reorganization of the Green Star
Company is entirely in the hands of
MIR. Lasker and his general counsel,
Elmer Schlesinger. Whatever decision
they reach will be submitted to the
board after it has been taken up with
the President, for it is a we'll known
fact that Mr.. Lasker has always con-
suited the Chief Executive before pro-
mitigating en- definite act or policy.
Unless the board agrees to revise
the contract made with the Green Star
corporation and Endorses the proposal
OF that line that it be given, free and
clear, four Of the nine ships upon
which the government holds mort
gage of approximately S14,000,0 900.
there is not the slightest doubt that
the corporation will be forced into the
hands Of receiver, as claimed in the
bondholders' petition. The latter are
using every means to forestall such
action, as bankruptcy proceedings
would entail serious difficulties to the
holders Of SS,oo0,00o worth of bonds,
although the mortgage is fully secured
By nine vessels upon which it is placed.
AT the present rate of tonnage, COM
pared to the S206 per ton at which
ships were bought by the Green Star
Line at the crest Of the trade wave.
the ships have deprecated in value.
but with the resumption of profitable
cargoes and a complete reorganization
the bondholders believe that they will
be protected and their confidence in
the future of the American merchant
marine fully warranted by their in
vestment