Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-07

from one-tourM OF the World.
The 1926 ships comprising our
merchant feet cannot trauel to
most OF the belligerent nations
and can use only inland 1Udter-
.1Days in going to Canada. A num-
Der of shipping companies are
hard hit By the loss OF the lucra-
the Atlantic trade.
BY GARRETT d. HORNER.
Secretary of State Hull is OPP
posed to the United States Lines
proposal TO transfer nine ships to
Panaman registry in order to
continue European trade through
danger zones forbidden to American
ships. he told his press conference
this afternoon.
Mr.. Hull said he had informed
the Maritime Commission of his op-
position to the proposal on the
ground it impairs the integrity of the
Neutrality Act. even though it was
not his function to pass on the mat
ter under the law. He did not indi-
SoeS WlloU Vic SOlllllllSSlOll 1CdJllOll
was.
The Secretary explained that he
was extremely DESTROYS of preserving
the absolute integrity of the Neu-
trality Act SO there would not be
any appearance of the Government
taking any course that might under
mine the policies set out in the act.
He referred particularly to Presi-
dent Roosevelt's proclamation OF a
combat zone through which Amer
lean vessels and citizens are for
hidden to travel in order to avoid
endangering of American lives ard
property.
In order for its ships to continue
going to prohibited ports under this
proclamation. the United States
Lines had applied to the Maritime
Commission for authority to place
nine of its vessels. which had been
in transatlantic trade, under
approved, the ships would fly the
Panama flag and not be subject to
the Neutrality Acts restrictions.
Held Question for Commission.
Secretary Hull explained today
that the matter first came to his
attention when he was asked for
comment at his press conference
yesterday Then he said it was
question to be decided by the
Maritime Commission because law
passed by Congress gave it discretion
over registry transfers
Later in the day, Mr.. Hull said,
he received a telephone call from
the Maritime Commission asking if
the State Department had any COM
ment to make on the proposal. He
said his reply then was that so far
as he knew. there was no question
of foreign policy involved and that
the State Department had nothing
to do with the matter except to
point out that if the ships were
transferred, they could not come to
the State Department for aid if
they got into trouble
The Secretary said he took that
initial attitude in an absence of
knowledge of all the facts. Later,
as some of the facts pertaining to
what was to be done with the ships
came to his attention, he was not
favorably impressed with them.
1t was then that he assumed his
attitude of opposition to the pro-
posal, Mr.. Hull said, adding that he
repeated this attitude to the proper
authorities this morning.
After one member of the commits
sion had said yesterday that the
transfer had been approved, the
full commission issued after a night
session statement saying it was
deferring final action, pending an
investigation of all the facts.
The ships consist of all but two
Of those used in transatlantic
service by the United States Lines.
If the application is approved, they
iwould be transferred to Panaman
corporation, would fly the Panama
flag. and would have no American
citizens in their crews.
DivOrcement From Flag.
1.-THE proposed transfer would
divorce the ships involved from any
and all protection afforded by the
United States flag said a commits
sion statement.
ANY favorable action would be
taken by the Maritime Commission
only upon the definite understand
ing that operations of the vessels
In question can in no way involve
the right of diplomatic protection
by the United States or be made
the basis of any claim put forward
by the Government of the United
States"
The commission explained that the
ships could not carry any Americans
either as passengers or crew in the
combat areas defined by President
Roosevelt. These extend Eastward
from mid-Atlantic around the Brit
ish Isles and all Western Europe
from Bergen, Norway, to Northern
Spain.
Nine Ships Involved.
Should the ships ever be returned
to United States registry, the COM
mission added. they could not enter
coastwise or intercoastal service. The
nine vessels are the American Ship
per, American Banker, American
Trader, American Traveller, Ameri-
can Farmer, American Importer,
American Merchant, the President
Harding and the President Roose-
welt.
The Merchant Marine Act pro-
tects coastwise and intercoastal
trade from foreign competition and
specifically provides that a vessel,
once transferred from American
registry, cannot return to this
service.
The provision against allowing
(see MARITIME, Page A-30