Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-02-15
A Great Experiment.

A great experiment which merits sue
cess is the sale by the Shipping Board
Of the United States Lines and the
American Merchant Lines; to be oper-
ated by private American capital under
the American flag in the overseas COM
merce OF. this country. These lines have
been operated since the World War
with the backing of the United States
Government, the United States Lines
directly by the Government. The sale
Of these ships, eleven in number, to
private American interests marks an
other step in the effort to bring about
a permanent overseas American mer-
chant marine. The fate of the new
venture will be watched with the keen
est interest. These ships, some of them
passenger ships primarily, like the great
Leviathan, and others cargo vessels. will
be operated in the North Atlantic
trade, the most competitive of all
merchant shipping. If they can be
made to earn money, it will no longer
be possible to say, as has been said so
often in recent years, that America
cannot compete with Britain, Germany,
France. Italy and the Scandinavian
countries in the shipping business of
the world.
The Shipping Board voted unani-
mously to sell these ships to P. w.
Chapman, Inc, of New York and Chi
cago for $16.300,o0o. The Senate COM
nerce committee, which had investi-
gated the bid, gave its assent, although
Senator Fletcher of Florida, ranking
Democratic member, and two other
Democrats voiced their disapproval.
Senator Fletcher's opposition was based
on the belief that the Government it
self should continue r operate these
shipping lines permanently, and that
the price paid for them was too low
when the real value of the vessels was
taken into consideration.
Under the contract with the Chap
man company, the Government receives
q guarantee to operate these ships for
a period of ten years in the overseas
trade and under the American flag.
There is a further stipulation that there
shall be requirements or supplements
TO the fleet. The company has prom
ised to construct two large liners cost
Ing approximately $25,O0O,OOO apiece.
The construction of these ships is to
be begun almost Immediately, it is re-
ported.
The policy with regard to the mer-
chant marine by Congress has been
that it should be placed finally in pri-
vate operation under the. American flag
Gradually, under this policy. the Ship
ping Board has disposed of great
many of the Government-owned ships,
which were obtained during the World
War. In the meantime, Congress has
directed that the shipping lines should
continue to be operated by the Govern
ment, either directly or through lease
until they could be sold. The difficulty
which the board has faced under such
circumstances is obvious. How could
shippers be expected to turn from the
foreign-owned lines which have served
them for years to give their business to
lines which were operated through the
Government when these lines might be
sold overnight?
Gradually, however. the Shipping
Board has disposed of its lines, seeking
always the most advantageous terms
for the Government and also terms
that seemed to assure the permanent
operation Of these lines under private
American ownership. This last sale is
the biggest which the board has ever
made. The transfer Of the United
States Lines and the American Mer-
chant Line to private American opera
ton puts American capital and Ameri-
can capacity on its mettle indeed.
-------------- $-9@~~S---