The New York herald., 1922-02-08

Washington. ID. o., lob- ..
In order to carry out the mandate OF
the Jones act to keep American vessels
in the hands OF private operators. TO
help keep alive the present operation
of merchant ships under the America n
flag and to place additional tonnage in
the hands of American operators the
Shipping Board announced to-day its
intention of helping the pioneer pur-
chasers of American tonnage.
The board gave out figures showing
that its advertising plans are based on
the desire to show to Americans the
advantage Of travelling on American
ships. 1t also prepared to discuss to-
morrow plans for the formation OF q
giant combination of West coast busi-
ness men for the operation Of American
steamships, both pc ssenser and freight.
ON the Pacific.
In regard 20 the pioneer purchasers
Commissioner Thompson for the board
In formal statement said:
III VIII be recognized that the
operating companies who were the
pioneers I'm the patriotic desire to build
merchant marine under the American
flag should not suffer the unsurmount-
able handicap Of having TO compete with
foreign flag vessels whose tonnage
tracted for by the pioneer American
operator. The difference in the In
terest return and the insurance cost
alone would make it impossible for the
American opera tor at these high ton
mage prices TO compete with the foreign
operator with tonnage ba sed on a so
much lower value.
Therefore 20 preserve the pioneers
from extinction and thus at the outset
cripple or nullify q large portion of
the merchant fleet in the hands OF
private operators under the American
flag. the United States Shipping Board
has evolved a program that the board
feels will ameliorate the situation, and
in addition to preserving the ship ton
mage at present in operation from sus-
pension provides for a further increase
in American flag tonnage in the hands
of these operators.
"The program calls for no financial
sacrifice on the part of the Government,
for the reason that where the pioneer
purchaser has defaulted in his obliga-
tion. with the ship Itself as a security
FOR the obligation. it was n case OF pre-
serving the pioneer and his organization
or take back the ship.
at was preferable. therefore, that the
pioneer keep the ship and acquire addi-
tional ships ct a present market value,
IL in so doing the Government received
in addition to what was paid in cash by
the pioneer an equivalent to the present
market value of the ship that would
otherwise be returned TO the Government
with the cost TO the Government in car
ing for the shin pending new sale on
price no higher than will be realized
under the plan provided"
Representatives Of the business inter
csts of all the Pacific coast cities will
confer with the members of the Ship
ping Board tomorrow on the plan for
forming gigantic American steamship
combine. following the suggestion made
by Chairman Laskcr several weeks ago.
Herbert Fleschacker. q prominent
banker Of San Francisco. one of the
moving spirits in tho venture. will head
the delegation. which, after a visit 70
President Harding, will go into session
with the board members.
Tho plan involves the raising Of he
tween S20,0o0,o0o and S30.00o.000 fo5
| financing the purchase OF Shippinl,
Board vessels end building others, pos
sibly passenger ships OF greater speed
than any the Shipping Board now has