The New York herald., 1921-02-06
Collapse of American Ship
ping Predicted Unless Con-
gress Extends Help.
THREE REMEDIES CITED
Direct or Indirect Subsidy
and Repeal of Restrictive
Antiquated Laws.

Club yesterday, predicted the collapse
of American shipping unless one OF
three remedies is applied by Congress.
These, he said, are direct Government
subsidy. indirect subsidy or the lifting
OF restrictions imposed by our anti
auated laws" Our merchant marine
is dying, Mr.. Hartman declared, and
although the Government and the Re-
publican party have pledged them
selves to do something, not one single
thing has been done.
He attacked the United States Ship
ping Board and said the annual bill
OF $20,o00,oo0 which it cost the coun-
try to operate boards ships if voted
annually as a subsidy to privately
owned shipping interests would solve
the problem. This statement was APP
plauded.
Mr.. Hartman said the American Ha-
waiian Steamship Company, of which
he is a diMctor, would notify the Ship
ping Board at q conference Tomorrow
that the board must withdraw its war
tonnage from the Hawaiian trade or
the company would withdraw from the
freight rate conference.
Operates Twenty-sfx Vessels.
'aThe An1er!ean-IIawaiian Steamship
Company operates twenty-siX vessels,
the largest privately owned fleet under
the American flag in the deep sea
trade" Mr.. Hartman. said. 1T did. its
share during the war and transported
thousands OF men and thousand OF tons
OF freight to France.
Nov the Shipping Board has put
its wer tonnage in the trade and as
result our ships are half full and theirs
are half full and we are all losing
money. Personally, I think it would be
an outrage for the Government TO put
our company out of business on top OF
its war record"
Mr.. Hartman, after declaring Gov
eminent ownership was an impossibility
said priyate concerns were totterlng un-
der present conditions. Unless Congress
did something-unless the Government
kept out of the trade. readjusted the
laws and provided an adequate SUBSIDY,
we soon would not have any prlVateiy
owned shipping. he said J..
An American merchant marine Is
necessary to develop our markets. Mr.
Hartman explained. taking, for eX-
annie. our trade with the Dutch island
Of lava. II we cannot sell direct 10
Java by shipping our goods In our own
bottoms, we cannot compete with other
countries that have ships. he asserted.
1--WE are asked 70 compete WIN lol
sisn shipping" Mr.. Hartman con-
tinued. ..but our laws are afitiauated
r.bev tell us the American seaman Is
the hest seaman in the world, and then
obliye us to employ more men on our
etips than any other country. we must
undergo more inspections and are iefoeu
10 provide better living conditions.
do not say that may not be right pu. W ~
ts ,he difference between profit ana loss.
is.aarai,, our ships are losing money
ON world trade. Foreign ships at lniS
t,nne are breaking even.
labor Problem Involved.
set cannot see why Il is not to the ad-
..,taoa ~ union labor to have these re-
strictions lifted. They are protectins .
ss,v ynen and hindering the employment
Of a gpeat many. As matter Oh 1 lacI
only s5 per cent. of the seamen einployeu
on American ships are Amerieah . ei..
zens, and the majority OF these are HUI
tiralized citizens
Referring to indirect subsidies MI
Hartman said that the James bill, regu-
iating freight rates on export irelsht'
was s'inequitable to various parts OF the
country" Pacific coast ports being
favored He said that one indirect way
the Government might subsidize shipping
yras TO lift the Panama Canal tolls on
coast to coast shipping. This. he stated,
would amount to a saving OF S2,OOoVuo
for the steamship companies and go one
third of the way toward paying sub
aidy to maintain ships in foreign trade
Mr.. Hartman explained he was dis
cussing cargo carriers. not PASSENGER
ships. In reply to a question as TO the
effect prohibition would have on Ameri-
can passenger service in competition
with foreign vessels he said that If pro-
hIbition is enforced dn American ships
we will not have any passenger trade at
all.
Admiral William S. Benson, chairman
Of the Shipping Board, and Frank a.
vanderlip, chairman of the board Of the
American International Company were
the other speakers.
BIindness in one Eye.
Mr.. vanderllp said he would risk be-
ing called unpatriotic for charactersing
American business as blind IN one eye"
Prosperity cannot come In full measure
20 us, he declared, until we learn to look
beyond our own borders. We cannot
sell TO unprosperous customers; and II Is
as important that other nations become
prosperous as II Is that we be prosperous
ourselves.
I'VE don't want Chinese wall here"
he said. THAT would be sad prosperity
and poor citizenship
What We need is broader vision cit-
zenship--intelligen selflshness. The Re-
publican Club is an admirable place 10
say this. and want 20 see the party
rise above partisanship. AS the worlds
leading nation we should take this world
Vision and act 90 AZ to give others
measure OF our prosperity. There IL our
salvation"
Mr.. vsnderlip was asked if he we're
in favor of 500 600 credit to for
eign buyers.
II am not sure of that scheme he
replied. I'VE have already granted all
the credit ! think We ought 10 grant.
The resumption OF European industry
will be long and painful process, and
some parts of Europe are In danger OF
be oming permanent paupers --perma-
nently looking for help. Until they cease
the printing OF paper money over there
] am not sure but that We are going
Gar enough with our credit"
Admiral Benson, whose address pre-
ceded Mr.. Harriman's, said he felt sure
the money spent for the 1900 vessels
controlled by the Shipping Board would
repay the people in the end. Even "
laaf la uot orarafad he oeeartSd