Evening star., 1939-09-17
Government Urged
To Provide Marine
War-Risk Insurance
Maritime Commission
Head Says Step Is
VitoI in Emergency
Nv JOHN C, HENRY,

Pressure for immediate enactment
of legislation to provide Govern
ment marine war risk insurance
was foreseen here yesterday as ON
cials Of the Maritime Commission
conferred with President Roosevelt
at the White House and operation
Of Europe bound American ship
ping out Of New York remained
tied up.
Conferring with the President on
several phases Of war time ship
ping problems. Chairman Emory S.
Land of the Maritime Commission
told newsmen later that permissive
authority for the Government to
enter the field Of marine insurance
in time Of emergency is vital to our
merchant marine.
In such emergency as present
wartime conditions create, he ex-
planned, private insurance firms are
becoming increasingly reluctant to
write insurance on ships, men or
cargoes entering the zones Of hos
tilities. And when they do write
this insurance. he added, the rates
are so high they contribute to q wi
cious circle" in which transport
charges become exorbitant and the
whole structure of ocean commerce
is badly dislocated.
1T is automatic that We need leg
islation," the chairman said, but
don't know when we'll get it.
What we do need right away is
stop-gap solution until Congress
gives US legal relief"
Strike Is Urgent Problem.
Most urgent of the problems aris-
ing out Of this situation as Admiral
Land and Vice Chairman Thomas
M. Woodward conferred with the
President yesterday was the tieup
OF nine ships operated by seven
lines in New York and Jersey City.
Their crews declined to operate
them in the war zones without ad-
vance commitments on extra COM
pensation and insurance provisions
Since the commission has been
exerting every effort to provide
sufficient shipping to bring all
Americans home from Europe, the
interruption to sailings was con-
sidered serious. As he left the
White House Chairman Land said
new efforts for a temporary agree
ment were being made.
While the whole situation is ex-
pected to become an issue at the
special session which convenes
Thursday, the clearly indicated hope
OF President Roosevelt to confine
Congress to neutrality legislation
alone may result in the "stop-gap
solution" referred to by Admiral
Land and postponement of further
action until Congress reconvenes
in January.
Bills Already Pending.
Already pending before Congress
however, are bills which would per-
nit the Maritime Commission to
undertake the necessary insurance
operations. Recommended by the
commission last May, the pending
legislation follows the pattern OF
the War Risk Insurance Act OF
1914, except that its administra-
ton would be vested in the COM
mission rather than In the Treas
ury Department Is it was during the
World War.
With regard to the World Wai
Act, incidentally. the Veterans Blu.
reau has reported that it operated
at a net profit, as income from pre-
miums and salvage totaled S47 500.
900 while losses amounted to only
$50, 900 900.
Citing the probable unavailability
in wartime OF privately written
insurance, most of which normally
originates in British firms such as
Lloyds of London, the commission
told Congress that, 'if afforded the
support of Government reinsurance
it appears that the American market
may be capable of meeting prscti-
cally all the needs Of American ship
ping even If the London insurance
market were closed '''G
Permissive in Character.
Specifically. the commission seeks
authority to provide for original in
surance or reinsurance against wal
risks and reinsurance against ordi-
nary marine risks for American YES
sells, cargoes and effects Of crews
and officers: for war-risk insurance
covering foreign vessels engaged In
commerce Of the United States, and
for benefits to crews and officers OF
American vessels in case of death
disability or detention following
capture by belligerent nation.
Emphasizing yesterday at the
White House that the legislation is
permissive in character, Chairman
Land pointed out particularly that ii
had been drafted after consultation
and in cooperation with private in
surance authorities.
With the President planning to
see congressional leaders of both
parties on Wednesday, when the
business of the special session will be
discussed, 1t is possible that some
decision may be made at that time
about emergency action on this
issue.
President Confers.
In addition to the maritime Of
flcials, Mr.. Roosevelt conferred with
Norman H. Davis, chairman of the
American Red Cross; Federal Loan
Administrator Jesse H. Jones, and
with Assistant Secretary of State
Henry F. Grady.
Mr.. Davis said the American Rec
Cross has received preliminary re-
quests for aid from kindred organ
izations in all belligerent nations
except Germany. No local drive for
funds is contemplated, he added
until the need becomes more
definite.
Meanwhile, officials of five Gov
ernment departments continued
their series of emergency" consul
tations at the State Department,
but would reveal nothing about
their discussions or decisions.
Those attending the conference In