Evening star., 1937-11-10
Proposal of Maritime Board
for Mediation Unit Most
Controversial.
BUILDING OF VESSELS
BY PRIVATE FIRMS SEEN
Giving Commission Responsibility
for Developing Oceanic Air
Travel Also Disputed.
BACKGROUND

Created for task of buildino up
American merchant marine, Fed
eral Maritime Commission found
no reliable background of intor-
nation available Uhen it took Of
flee. Consequently, commission
has spent most OF its time since
last spring in developing facts for
recommendations and future &C.
ton. Results OF this inquiry were
released this morning.
By the Associated Press.
Opposition was developing today to
three major portions of the Maritime
Commissions program for restoring
what it termed Americas very sick"
shipping industry.
The biggest dispute may result from
recommendation for a mediation
board to handle maritime labor prob
lens. The commission said a solu-
tion is essential to continued exist
ence of the merchant fleet.
The other controversial proposals
were:
That the commission be given re-
sponsibility for developing transoce-
anic air travel
That the ban be lifted against con-
struction of American ships abroad
If savings would result.
The commission outlined its program
last night in perhaps the most COM
prehensive survey ever made of Amer
ican shipping.
There is prospect. it said, that pri-
vate companies may build SIS new
cargo ships in the next five years.
They would cost s137,000,00O, of
which the Government would pay
more than s50,00o,00O in subsidies.
Government Must Build.
If shipping falls off or if the COM
panies fail to raise enough capital,
the commission said, the Government
itself must build ships to meet for
eign commerce and national defense
requirements.
Contemplated replacements fall
short of the number of ships ready
to retire from service. Of 155 YES
sells in the subsidized feet, 131 will
be obsolescent in five years. Of 1.422
vessels of all types in the Nations
entire seagoing merchant fleet, 1906
will be obsolescent in five years.
These aging vessels are what re-
main, the commission said, of the
magnificent armada" of merchant
ships which America had in 1922.
In the age of vessels the commits
sion noted one of the causes of labor
troubles-cramped quarters. For al
lowing these to exist, for paying sea-
men poor wages and for giving them
generally poor working conditions,
the commission blamed ship operators.
On the crews. it placed responsible
ity for extraordinary abuses" of their
employment through strikes, break
downs in discipline and order and
costly interruptions to service.
Mediation Group.
The proposed mediation group would
be similar to the Railway Mediation
Board. Leaders of the National Mari
time Union, G. I. o. affiliate, already
have voiced opposition to such an
agency on the ground it might limit
labor's power.
There was question, too, as to
whether labor would be whole-heart-
edly behind commission proposal to
organize at New York City a school,
under Coast Guard supervision, for
training 500 new seamen q year.
In regard to aviation the commits
sion predicted regular operation of
North Atlantic planes in the near fu-
ture. 1t foresaw a possibility of
dirigible service across the Pacific.
In contrast to the commissions re-
quest for authority over these services,
the aviation industry generally has
taken the view that it should develop
separately from other forms of trans
portation.
American shipbuilders were expected
to oppose the commissions recon-
mendation about foreign construction.
Federal Subsidies Limited.
The board noted that Federal subsi-
dies, designed to meet foreign low-cost
competition, are limited to so per cent
of the American cost of vessel. If
ship can be built abroad for less than
half of what it would cost here, the
commission said, foreign construction
would be cheaper.
The commission recommended to
Congress nine changes in the Mari
time Act. Most of them were designed
to attract private investments, which
probably vii come, Chairman Joseph
P. Kennedy said, from sources already
identified with shipping interests.
The nine proposed changes in the
Maritime Act follow:
1. Authority for the commission to
waive the present requirement that
no official of subsidized line be paid
more than $4,000 year.
g. Authorization for American lines
to build ships abroad if they can do
so at less than so per cent of the cost
of American construction. Alternative
(See MARITIME, Page A-3.)