Evening star., 1923-03-10
Contracts Will Call for Con-
tInuanCe of Vessels in Es-
tabIished Services.
GOVERNMENT Is LOSING
MONEY ON VARIOUS LINES
combination of Ship and Route
Believed an Advantage to
Purchaser.

Inc shipping Board is making mans
TO sell ships on routes now estab-
lished-part of the contract of sale
being that the purchasers will main.
tain the routes for specied period.
An outline Of these plans has been
prepared, 1T was learned today on
high authority. and the Shippine
Board will make a careful survey
of the situation before making any
Of the proposed sales.
me merchant marine act of 1920
gives the Shipping Board wide lati-
tuoe IN the matter of establishing
routes Tor vessels and in the matter
~ ~ selllhg the vessels now owned by
the government, it was explained, and
the plans now being developed VIII
oliiorH 10 the powers granted by
that act.
Shipping Board Plan.
The plan Of the Shipping Board NAV
be explained in the following way:
shipping Board vessels are opera,
ing between port on the Pacific
coast and the orient, or between An
American port and South America. but
at loss. II is the purpose of the
shipping Board to sell the vessels
ana the route at reasonable figure
TO purchasers who agree to maintain
the routes.
The price of the vessels, il is said
must De controlled TO some extent By
the fact that the purchasers agree to
MAINTAIN for certain period the
routes ablished-whether the new
owners operate the vessels at loss
or not. For that reason. the prices
may be lower than otherwise-aI-
though if there were no assurance 81
government aid. il was pointed out.
II might be SO difficult to find a mar
ket for the vessels that the prices
would be as low or lower than under
Board
The vessels owned by the govern
ment are lesSening in value year by
year. The life of a vessel is put down
AT twenty years. and the government
II IL continues to operate the vessels
year after year-at loss to the gov
ernment and the country-and builds
no new vessels in the end will have
no vessels. The capital investment
as we'll as the money expended 10
keep the vessels in operation will be
total loss.
Will Sell Vessels.
Under the plan now proposed. il is
said, the government will get rid of
the vessels. obtaining some of the
money invested in them, and at the
same time assure the continuance OF
American vessels on the routes estab-
lished.
The government will get out from
under, and the shipping business Of
the country will be transferred TO
private capital and private initiative
which has been strongly urged.
The Shipping Board and Emergency
Fleet Corporation have $4,000. 900 to
mee1 any losses and expenses that
may occur in the operation of the
goNernmentoWned vessels during the
fiscal year ending June 80. 1924. 1t is
going deliberately, therefore, about
lis plans. and does not intend to sell
the vessels now operating at a great
er sacrifice than is necessary.
announcement has already been
made by the Shipping Board that il
proposes TO maintain for the present
established routes and that there will
be no Scrapping of the ships.
The Shipping Board is to recondition
some of the big passenger vessels
seized from Germany during the war
ana VIII operate lines from the Attain
tic coast to Europe. and part of the
money appropriated by Congress is to
go for that purpose
Under the act of 1920 the Presiden,
Is given authority to abrogate the
treaties now existing between the
United states and many of the other
nations. SO that the United States
may discriminate in the matter Of
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