Evening star., 1926-12-01
BIDS ON i. S. SHIPS
MAY Be REJECTED
Policy of Board Somewhat
Uncertain on Issue of Wind
ing Up Affairs.
BY DAVID LAWRENCE.

Will the Government really get out
of the shipping business or linger in
it indefinitely? 1t begins to look as
if the bids recently submitted for the
purchase of the United States Lines
and the American Merchant Lines,
including such vessels as the Levia-
than and the George Washington,
will not be accepted.
All sorts of reasons are being ad
vanced for the rejection of the bids,
particularly because of cumbersome
provisions relating to mall contracts
and the alleged insuff1ciency Of price,
but basically it is question Of wheth-
er the Shipping Board is prepared to
liquidate itself. For its main activity
would be taken away if the ships were
sold and there is q school of thought
which believes that as ocean tonnage
grows more precious the American
Government ought to be in q position
to step in and protect the American
shipper against excessive ocean
freight rates.
There is another school which in
sists that SO long as the Government
control of shipping is retained and
no program for replacement Is adopt
ed the manipulation of rates will con-
tinue in the hands Of foreign ship
owners.
Limitations on Board.
The Shipping Board has control of
approximately $S0,000,000 Of funds.
but cannot buy or build ships with
this appropriation. It can only lend
to other companies or individuals
who buy or build vessels. II much
of this money is used in carrying
out the program provided in the pres
ent oids, the influence of the board
on the shipping business would be
correspondingly diminished, in the
opinion of some of the independent
shipping interests.
Since the British coal strike there
has been a shortage Of Atlantic ship
ping, because SO many vessels have
been used in direct transportation OF
fuel to England, and freight rates
have gone up sharply. This scarcity
of ships has held back the handling
of exports of American wheat and
cotton. and, in turn, has meant that
American producers have been COM
PEELED to accept lower prices for their
crops. since in effect they pay the
freight.
The farming interests of the coun-
try are therefore more vitality con-
cerned in the settlement of the matter
-
Heretofore there has been scant in
terest manifested in the Middle West
and West in the preservation of an
American merchant marine-at least
much less interest than has been ex
hibited on the seaboard and in the
larger cities. President Coolidge has
let it be known that he Is not going
to interfere with the activities of the
Shipping Board. leaving 1t to the COM
missioners to evolve a policy based on
the facts as presented to them by the
parties in controversy.
Will Study Bids Further.
The board meanwhile has announced
that it will continue for two weeks
longer to study the present bids, TAX
ing definite action at the end Of that
period. The purpose Of the delay is
to give the bidders another opportu-
nifty to conform to the wishes Of the
Government. as it is hoped that some
proposition that can be accepted may
yet be presented.
Mr. Coolidge is under considerable
pressure to take hand and persuade
the board to sell the ships, but he
has not indicated that he would go
that far. In his speeches and mes
sages ne has declared himself as OPP
posed to the Government staying IN
the shipping business. In fact, this is
the policy set forth by Congress in the
laws governing the present operation
Of the Shipping Board, but the latter
is to be the judge Of whether the pro-
spective owners can maintain trade
routes in the interest of the American
shipper and also satisfy other require
ments of an American merchant ma
rine policy.
Great Britain recently has strength
ened her position in Atlantic trade by
purchasing the White Star Line feet
from the International Mercantile Ma
rine. an American concern, and Brit
ish interests are bidding also for the
Leyland Line and the Atlantic Trans
port Line, which are owned by the In
ternational Mercantile Marine. This
might make possible an arrangement
between the International Mercantile
Marine and the Shipping Board, be.
cause up to now the international
Mercantile Marine has been operatin:
ships under the British flag, but now
is in a position to replace their ton
mage with ships under the American
flag.
tCopyright. 1o26.l