Evening star., 1927-11-10
HURLEY'S SHIPPING
PLAN ST|RS PUBLIC
Extraordinary Interest L
Aroused in Upbui|ding of
Merchant Marine.
BY DAVID LAWRENCE.

Details of the plan submitted by
Edward NJ Hurley for haif-biiion-
dollar loan fund for the upbuilding
Of an American merchant marine
have provoked extraordinary interest.
The plan, which to large extent Is
compromise between Government
control and Government ownership OF
shipping, is not merely a casual pro-
posal.
Coming from a former chairman Of
the Shipping Board under @ Demo
cratic administration. the scheme is
regarded as hardly likely to be side
tracked as part of the partisan poll
tics of the hour. Hurley talked over
the whole thing with President Cool
idge several weeks ago and the Presi-
dent encouraged him to develop his
plan and submit it to the Shipping
Board. AS a Democratic member of
the World War Debt Funding Com
mission, Hurley came into frequent
contact with the President and 1t was
natural for him to take up informally
at the White House the general prin-
ciples of Government aid to shipping.
so that when the matter was laid be-
fore the Shipping Board and u!ti-
mately before Congress it would have
the benefit of non-partisan considera
ton.
Hope for Action Seen.
Publication of the details now is ex-
pectcd to crystalline public opinion on
the subject, with the hope that the
merchant marine problem will really
re- acted upon at the coming session
of Congress.
Fundamentally the feature of the
plan. which differs from any other
which has been suggested. iS the idea
of lending money to private ship on.
orators at ~, per cent for the con
struction Of new vessels. The prir'
cipal difficulty in building up an
American merchant marine has beep
the high cost of tonnage, which Amer
ican companies have been unable 70
meet in view OF the high ope1 atlDg
expense under American, law. III
other words. if American ship own
ers were to buy the present fleet
owned by the Government me lntIr, ,,o
est on the money invested to buy ihe
ships at the Governments piices
would constitute such heavy charge
that the financial interests have mol
been willing to advance the funds
Also the cost OF replacing old SHIPS
would require huge sums OF money.
which again would have to he Dor
rowei at high interest charges De-
cause of the general impression that
American ship companies cannot COM
pete in operating expenses with ior'
eign lines.
The Hurley plan is designed to
equalize these disadvantages OF opera.
ton by cutting down the cost OF
borrowing the money Also If the
Government is willing 10 make inans
at 2h per CENT the impression vii.
be that the Government is standing
back of the transac ctions with the
shipping companies and this mora
support will tend to give the ship
owners confidence In developing lines
of trade,
Would Oppose Rails Entering.
The theory that the railroads should
be permitted to engage in coastwise
shipping and In transoceanlc business
will be opposed by various interests
but the plan for lending $500. 900. 600
to responsible institutions which
would build up the American mer
chant marine. may ultimately be
accepted by Congress, with certain
restrictions such as now. are placed
on the railroads. Indeed the amount
Of money tina, the ship companies
may earn. SO that all sums above
C6Itdtu pGICCiltdSC HOuW UC tCtt'p
tured, as is now the case with the
railroads, may be restricted. as such
a proposal is likely to come from the
radical members Of Congress. Coy.
ernment control of expenditures OF
the ocean carriers may he developed
in somewhat the same way as the
Interstate Commerce Commission now
supervises the expenses of railroads
The Shipping Board may thus he,
come analogous to the Interstate Com,
merce Commission both in functions
and powers with the possibility that
coastwise shipping may he placed
under the complete jurisdiction of the
Shipping Board, whose duty 1t might
be to fix rates as between American
ports.
The whole plan undoubtedly will
undergo much revision before Con.
gress gives II approval, but 1t is ap.
parent already from the way the pro.
posals were launched that there is a
serious belief on the part of a mum.
ber Of important business interests,
as well as administration officials.
that the Hurley plan may offer a
basis for compromise between those
who wish to encourage private opera.
ton of an American merchant marine
without Government ownership and
those who believe in certain measue e
OF Government regulation and control.
such as now Is exercised over the
railroads.
fCopvrieht. 1927