Evening star., 1929-11-17
Selected Group of Executives
to Receive Summons for
Thursday Conference.
HUGE SHIP PROGRAM
STUDIED BY COMMITTEE
Construction of 80 Vessels to Cost
5000, 100000 Proposed With
Mail Contracts.

Immediate expansion Of the American
merchant marine by about 80 new yes
sells to cost upward OF 5000, 100000 was
contemplated Yesterday in the Govern
ment's plan to unite public and private
initiative to avert any serious lnouS-
trial sag as a result of the stock mar
ket crisis and Its effect on pubic con-
fidence.
such a plan, involving the granting
OF a mail contract to the United States
Lines. Inc, and similar SubventionS to
nearly score of other lines, was oe-
fore President Hoovers interoeparC-
mental committee as American INDUS
try promptly responded to President
Hoover's call for combined action 10
resume delayed construction ana ex,
pansion projects and encourage al
other business activity.
At the same time the President urged
every Government department to re.
lease whatever pending projects mao
been for any reason postponed, so tnaC
the Government might take the leao IN
stimulating the flow Of money from the
speculative market back to industrial
activity. Meanwhile President hoover
went forward with his plans for the
conference Thursday.
Business Pledges Support.
Business leaders all over the country
we're ouick to applaud the Presidents
business leadership Of the Nation ana
to pledge their wholehearted support
it was said at the White House. Inis
attitude of the commercial World is
relied upon TO encourage the prenm-
mary conference OF Government, ON onS
labor leaders which the PresloehC haS
oaI1ad for ChIIrSday.
THE President was said to be receiving
hundreds of messages offering co-opeTa-
tion and suggestions. many proposing
narticnlar business leaders Tor MEM
bership in his conference.
In none of the plans by responsiDis
administration officials Is there any
talk of emergency constructor WoIA;
The Presidents idea, to quote one ~
his aides. is merely to brush the COD
rehs off of construction and builoing
plans" both public end private, wnlcn
have beerl pigeonholed for various rea-
sons. such as the tnzhtlity to fioat nee
essary bond issues in the face OF the re-
cent speculative frenzy.
Speed Up Ship Construction.
The ship construction plan, for IN.
Of the Presidents interdepartmental
committee has been working on lor
some time. It does not contemplate any
emergency construction for the sake
of increasing industrial activity. IL
docs however, recommend action on
some cases which, if decided, will mean
. prompt start on work that might
otherwise be long delayed.
Thus, the subcommittee mas recon-
n1ended a prompt decision on the apph-
cation of the United States Lines, me,
V@ANdfn0 hAf0TR
Post once Department since last
Spring.
The subcommittee has now recon-
r1ended. to the parent committee that
substantial mail contract for the route
tn he served by two projected super
liners of the United States Lines. SIS
ter ships of the Leviathan. be adVer.
tised. The plan applies to the proposed
new ships. it is learned. Whether II
covers the particular application OF tne
United States Lines. which ran aIoui
Of strong administration resistance last
Summer, cannot be ascertained.
Mail Contract Refused.
The application in that controversy
would have provided mail subsidy money
for several Of the slower ships OF the
United States Lines as well. Walter r.
Brown, the Postmaster General, wrote
to the United States Lines that It's
financial condition, as represented In
a stock prospectus of p. w. Chapman
& Co. did not warrant or justify mail
contract, since 1t indicated that the
lines could earn their own way without
Government assistance under the Jones'
White merchant marine act.
The United States Lines replied that
its advertised financial condition was
predicated on the receipt Of mail
contract which. altogether, would
amount TO about $23o0,000 a year for
10 years: The corporation MADE u
known at the time that 1t could not
proceed with its projected two super
liners unless assured OF the mail con-
tract. It has lately advertised for bids
on them. They are estimated to cost
between $25,000,000 and $30,000,oOO
each.
The parent interdepartm@tal COM
rnittee Is to act on the subcommittee
recommendations at meeting at II
O'Clock tomorrow morning. 1t Will have
before it proposals of the Subcommit-
tee for award of mail contracts on per-
haps l8 other routes, provided approx
mately 80 new and modern ships are
put into service on those routes within
the next three years.
Cost Would Exceed 100000, 600.
The cost of these required vessels, Il
the subcommittee recommendation be.
came the Governments recruitment
would exceed 100000. 900. In return
the Government would award mail con
tract subsidies amounting to about $25,'
600 1000 a year, or $250, 100000 for th'
1O-year period.
The subcommittee, after consultat tioi
with the parent committee, decided Il
proceed with its recommendations a
TO these lines without awaiting clarifi
cation of the merchant marine act b,
Congress. as suggested in a report o
the irterdepartmental committee L
president Hoover. 1t is, however, leav
ing unsettled the status Of several ap
plications involving the contention tina
buyers of Shipping Board liners ar
entitled to preference over other Ameri
can shippers IN the award OF mail con
tracts. That point remains to be clari
fed to the satisfaction of the interde
nartmental committee, but in inter
ureting the merchant marine act other
wise TO mean that mail contracts ar
to be used not merely TO maintain
fine American marine in status quo; S
to speak. but actually to extend an
expand 1t with modern new shippin
TO keep abreast Of foreign competitiV
shipping.
II is on this basis that the sub
committee has recommended to tn
rarent committee the advertising c
mail contracts on the several lines mer
S;a,ed fakinr the r,osition that IL