New-York tribune., 1921-10-20
Operators Urge
Curb a11a1,1a
Line at Hearing. q.
House Committee Asked to
Place Coyernment~Owned
Firm Under Supervision
of Board by Edmonds Bill
Unexpected Opposition
Elimination OF Army Ships
on Pacific Sought as Aid
to Private Companies

roni The 7rihune's Washington Bttrcou
WASHINGTON, Oct Enactment
OF the FdmOnds bill. to place the serv-
ices Of the Panama Steamship Company
under the supervision Of the Shipping
Board and also % authorize the elm
ination Of army transports on the Pa
ciic, was urged before the House Com
mittee on Merchant Marine and Fish
tries to-day by representatives of the
steamship owners. The arguments of
the ship men met with unexpected op-
position from several on the committee,
who wanted assurance from the owners
that they would purchase or charter
government vessels and guarantee a
continuance Of the services when the
Shipping Board decided to sell its ton
mage.
Representative George w. Edmonds,
author OF the measure, frequently came
10 the defense Of his bill and led the
discussion back to the merits of trans
ferring these government operated
routes to lines established by the Ship
ping Board with private companies.
The trend was toward the losses suf-
fered by the board on its allocated ves-
sells and the fear that the privately
owned lines might later withdraw from
operation. Hugh Gallagher, Eastern
representative of the Pacific Steamship
Company, answered a question from
Representative Rufus Hardy. Of Texas,
by saying that if the Administration
TOW en- the statute books, there is no
fear that American vessels viii aban-
don the Pacific trade Adoption of the
Fdmonds bill, Mr.. Gallagher said.
would provide the companies In the
Oriental service with d nucleus Of
freight and passenger traffic that would
enable them to build UP their business.
Marvin Speaks for Owners
Winthrop /. Marvin. president
and general manager Of the American
Steamship Owners Association, out
lined the position Of the Eastern own
ers lie declared the operation of the
government~owned Panama Steam hip
Company from New York TO the West
Indies and Central America has Sc
riously interfered with the private
lines This competition should be re-
moved he declared. 4 similar position
was taken by c. IT, Pearsall, general
manager of the ydeRapporal Line,
who detailed the activities Of the
Panama Steamship Company.
T. II. Rossbottom, general manager
OF the United States Lines, who was
loaned temporarily To- this purpose by
the Panama Steamship Company, de-
clared the Panama Line has given an
adequate service at satisfactory rates
at time when the private lines were
increasing their rates. FOREIGN YES
sells, by cutting rates and other prac-
tices. insisted MIR. Rossbottom, would
der alien flags if the Panama Steam
ship Company had not been abe to
meet this competition.
Other stea mship owners said that a. 6
time when the private lines are facing
a serious financial situation because of
the depression in shipping the opera
tions OF I g Panama lire should be
controlled By the Shipping Board as
provided in the Edmonds bill, to elimi-
nate rate cutting as a form of gov
ernment competition against private
owners.
Robert H. Patchin, representing W
R. Grace & Co. and the Pacifc
Mail Steamship Company, joined with
Nj. Gallagher II urging that the trans
portation Of army officers. men, anc
freight across the Pacific should be
transferred from the transports te
lines under private operation. lie sale
that with the alocation Of the new
combination cargo and passenger YES
sells these American COMPANIES vii
have regular services 10 Hawaii anc
she Philippine, which will be able /,
csre for the needs Of the army.
Cost Placed at s4,25O,OOO
Mr.. Gallagher estimated The trans
port service maintained by the arm,
across the Pacific cost about s4.25o. .0O(
year, including overhead interest, In
surance. depreciation ard other item.
That would be considered by a CONNER
cial concern, as compared with S2,10O,
900 for which the work could be per
formed by private comranies.
At this point several of the com
nittee, lead b. Representative Hardy
attacked the cost Of operation on tn,
passenger vesee's now operated by tn,
Pacific Steamship Company. In rcpl,
70 questions, Mr. Gallagher said tina
each Of these ships. on a voyage O
approximately seventy DAYS. shows
loss Of about SO 600. This sum rep
resents about the amonnt whicl
Japanese vessels receive from thei
government as subsidy, Mr.. Gallayhe
declared.
~ our government VIII stand be
lind rs and vii enforce this Law, ant
also the Jones law we viii char+e-
sn'ps Or buy them.' said Nh GaNagher
he added that ~ ptioN % tho Edmond
n'H would Greatly encourage tho privat4