Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-21
j. S. lines STATUS
IS DISCUSSED HERE
Lump Sum Operating Method
Considered at Conference
of Officials.
aneciaI Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 20.-In response
to an invitation from the Shipping
Board the directors Of the United
States Lines went to Washington a
few days ago to discuss the general
situation in the shipping industry, and
particularly with reference to their
own company. Due to the sharp drop
in passenger and freight revenues, an
outgrowth of the severe economic de-
preston, the United States Lines, like
other steamship companies. has been
adversely affected, and one of the mat
tiers taken up at the meeting con-
cerned financial assistance which could
be rendered by the Government at this
time.
LUMP Sum" Plan.
A suggestion discussed was that the
Shipping Beard reacquire the United
States Lines and permit the present
management to operate 1t under the
so-called 'lump-sum" operating plan.
The operator, under the plan, assumes
complete physical and financial response
bility for the operation of the line.
For his services, and to compensate
rim for the costs and risks which he
assumes in undertaking to operate for
private account a line which in most
cases has not yet made a favorable
financial showing, the operator is paid
q lump sum by the Merchant Fleet
Corporation, Government agency, the
amount in case being determined by
analysis of past operating results and
an estimate of prospects.
Should such a solution be adopted
by the Shipping Board, it is probable
that the United States Lines manage
ment will ask that the sum paid
against the purchase of the Lines.
about 100000. be turned over to a
trustee and disbursed as interest on
the company's obligations.
At the Office OF the United States
lines, no comment was forthcoming as
to the plans which had been discussed
decision has yet been made by the Ship
ping Board as to what action it will
take.
In 1880 the United States lines suf-
fered net loss of $728,150. At the
end of the year its paid-in surplus
amounted to $1,90o,0OO and earned sur
plus to $130,s24. Cash amounted to
1921, 1922.
The United States lines was pur-
chased from the United States Govern
ment by P. w Chapman & Co., Inc,
in the early part of 1929, for $16,082 ,000
and represented six veSSelS-the Levia-
than, George Washington, America, Re-
public and Presidents Harding and
Roosevelt-and in addition the Amer
lean Merchant lines operating five
vessels.
100000 of Debt Paid Of.
Subsequent to the acquisition, p. W
Chapman & Co., Inc, offered 600 00C
shares Of preference stock for public
subscription. A balance sheet at the
time showed a mortgage Indebtedness
to the United States Government OF
$l2,061 500, bearing 4.25 per cent in
tereSt and due in series from 1890
to 1914, inclusive. The United States
lines are understood to have paid of
about 1904 1000 of this indebtedness.
At the last annual meeting of the
company, in February, five new direc-
tors were elected to the board, who, il
y understood, represent the interest OF
the Government. These were Ira A.
Campbell of Kirlin Woolsey, Hickox
Campbell & McGrann; Robert L. Hague,
president of Standard Shipping Co, a
subsidiary of Standard Oil Co. of New
Jersey; Howard E. Cole, former vice
president of Standard Oil Co. of New
York; Edward N. Hurley, chairman
Hurley Machine Co. and wartime
chairman of the United States Shipping
Board, and Franklin D. Mooney, presi-
dent OF Atlantic, Gulf & West Indies
steamship lines.
The United States lines has two
9Q,000-ton liners under construction at
The New York Shipbuilding Co. in
Camden, N. j., which will cost about
$10,500,000 each.