Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-08
j. s. HANDICAPPED
IN SHIPPING TRADE
Severe Competition Encoun-
tered by American Lines
in North Atlantic.
By CLAUDE A. jaeger.
Associated Press Financial Editor.

NEW YORK, August s.-Enorts Of
the United States 70 re-establish her
supremacy on the seas. which waned
with the coming of steam navigation,
have been seriously handicapped by the
business depression IN general and the
severe slump IN foreign trade. in par
ticular.
It is IN the coveted North Atlantic
trade that competition is keenest. and
where American efforts to gain an i'm
portant slice Of the business have en-
| countered the most serious difficulties
The United States Lines, which
passed from the United States Shipping
Board into private hands only two
years ago last April is the only Amer
lean line which has been making a
serious bid for first-claSS passenger
service between New York and the chief
European ports. and this line has fallen
on such bad days that the owners are
expected 70 make = new deal with the
Shipping Board, or sell out tn some one
else.
Lineup Of Companies.
T. v. O'Conncr. chairman Of the
Shipping Board, is making a fourth
trip to New York since July i2 this
month TO endeavor to make new
arrangement TO permit continuance of
privsse operation of the United states
Lines including the Leviathan, worlds
largest ship in point Of tonnage .
The International Mercantile Ma
rine. one OF the leading American ship
ping enterprises, for several wears
owned the White Star Line. one Of the
leading North American Lines. oper-
ating the Majestic, worlds largest ship
IN point OF length. This COMPANY.
however, has operated several OF It's
lines under foreign fiags The tribula.
| lions OF this ambitious steamship
merger, formed under Morgan soon-
sorship at the turn OF the century.
have been wei known. including the
recefyership and Tecapitalization OF
1915, after defaults on bond interest
and the disqualification Of 1899, which
eliminated burdensome accommodations
OF unpaid preferred dividends.
The company strengthened IFS posi-
ton in 1927 by selling the White Star
Line which had been under British
operation during the American owner
ship, 70 the Roy ] Mail Steam
It has recently been consolidated
with the Roosevelt Steamship Lines,
which marks a plan to build up Amer
lean shipping under the American flag
The international Mercantile Marine
has been mentioned as one Of the most
likely purchasers Of the United States
Lines, IL no arrangement IS made for
continuation under the present man
agement. This would put the Interna-
tional Mercantile Marine back In the
North Atlantic trade IN an import way
again, although 1t would not give Il
Line
The International Mercantile Marine
Roosevelt group has been making an
audit Of the United States Lines prop
critics, and It Is understood Iii shipping
circles that q definite offer will Be
made when Mr.. O,Connor comes 10
New York again this week.
Bought by Chapman.
The United states Lines were pur-
chased by Paul W. Chapman and asso-
ciate in 1929 for $3.50 900. The Gov
eminent took mortgages for q snbstan-
tial portion of the amount. and now
holds mortgages in the amount of about
$ll 100000. Il Is felt In shipping circles
that the international Mercantile Ma
! rlne- Roosevelt group may make an
offer for these mortgages
Under the terms Of the Chapman
purchase, two superliners we're to be
built ct a cost Of not less than S22, 000.-
600 each, to be completed by 1898.
The North German Liloyd's entrance
into the Atlantic trade with the crack
liners. Bremen and Europa, breaking
all speed records, caused Chapman in
terests to revise their plans to build
two superliners to compete with the
German ships at q cost of $50, 900 0Og
Hard times then interviewed, and this
plan was temporarily dropped.
In the meantime, contracts were let
for the building Of two SO, 0O0-ton yes
sells at q cost of sI0.5o0, GOO each, and
work started by the New York Ship
building Co. ct Camden, N. j. The
Chapman interests have already adj
vanced 81 100000 to the Shipbuilding
company, in addition to the S. 900 900
paid ON the ships taken over from the
Shipping Board. It is suggested in ship
ping circles here that If the Chapman
group could be relieved Of the coming
payments on the ships now under
construction, 1t could carry on.