New-York tribune., 1922-11-10
United American Lines
to Transfer Resolute
and the Reliance to
Registry With Panama
Passage Cancelled
BY SO Passengers
Finland, KroonIand To Be
TakenOff AntwerpRou
Because of Prohibition

The United American Lines an
nounced yesterday it's intention of
transferring the steam ships Resolute
and Reliance to Panama registry be-
cause OF the application of prohibition
to American ships, while foreign vessels
! are exempt.
1t was learned also that next spring
the International Mercantile Marine
steamships Finland and Kroonland,
which have been under the American
Nag for many years, will be taken off
the New York Antwerp route because
OF their inability to compete with for
eign vessels which sell liquor.
This information, which was expected
among steamship men, confirmed indi-
cations, shipping circles insisted, that
enforcement of the Volstead act beyond
the three-mile limit would cripple pas
senger traffic under the United States
flag. With the exception Of the vessels
owned by the United American Lines
and the International Mercantile Ma
rine there are no privately owned pas
in transatlantic service. The Shipping
Board owns the United States Lines,
but has hoped to dispose of the feet
to private company and withdraw
the government from the business of
owning and operating vessels. Steam
| ship officials said yesterday that sale
of the line is now doubtful, even with
the aid Of subsidy, unless the prohi-
bition law is modified.
Reserved Transfer Rights
In transferring the Resolute and the
Reliance the United American Lines is
exercising a right reserved when the
ships We're purchased and placed under
the United States flag less than year
ago. They were obtained from the
Royal Holland Lloyd and are now, with
the exception of the Leviathan, owned
by the government. the finest liners
| sailing under domestic registry. They
are 5000 ton. triple-screw oil-burning
vessels. built in 1926. They are owned
by the Atlantic Mail Corporation, q
| subsidiary of the American Ship and
Commerce Corporation, and are OPP
Grated by the United, American Lines
between New York and Europe
In announcing the decision of the
company r. M, M. Robinson, president
of the American Ship and Commerce
Corporation and the United American
Lines, said that it was due entirely to
the prohibition law. He said that moro
than fifty passengers had cancelled
high priced reservations on the Reso-
lutte alone, which was chartered last
summer to Raymond & Whitcomb for
cruise around the world this winter.
Believing that prospective passengers
desire the same accommodations as
those trrveling on foreign ships, the
liners are to go to Panama registry be-
fore their cruises.
At tho oH'ces OF the International
Mercantile Marine Company it was said
that President P. A. S. Franklin is now
in Europe. In his absence no official
statement was issued, but it was ad-
mitted that the company would be COM
PEELED soon to remove the Finland and
the Kroonland, both 12,000-ton vessels,
from the New York-Antwerp run. No
change will be made with respect to
other vessels under the British flag on
the same route.
Awaiting CONGRESSES Action
No decision has yet been reached, it
was said, on transferring the registry
of the Finland and Kroonland, but an
effort will be made to find another
service where they will not feel the eff
fects of the prohibition law so severely.
1t is understood that the company is
awaiting the action Of Congress on ths
subsidy bill before determining its
policy in respect to its American
vessels.
transfer Of the United American
Line vessels to foreign registry was
inevitable" said Winthrop L. Marvin,
e-president Of the American Steam
ship Owners Association. "The action
of the Treasury Department in exempt
ing foreign ships from the prohibition
law while maintaining 1t on American
steamers make it impossible for the
latter to operate successfully. The Adj
ministraton seems determined to fol-
low this policy and there is nothing
else for American companies to do.
some of the worst results Of this
situation is that the foundation of q
naval reserve, for use in time of war,
is destroyed at the moment when it
is just beginning. Not only is it made
impossible for shipping under the
United States flag to compete success
fully as an industrial enterprise, bu.
the government loses an important
part of it's naval defense.
"The prohibition ruling comes on top
of economic handicaps such as higher
wages, greater subsistence and capital
tcen.inued on next rase>