Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-08
Ships Transfer
Report Drafted
For Roosevelt
No Acceptance Of
Responsibility Seen
Under Punumu FLAG
BULLETIN.

NEW YORK, Nov. 8 (P.-
Standard Oil Co. of New Jersey
officials said today at least six
of its tankers had been trans
ferred from the United States
to the Panama flag in the past
six weeks and that Is ships in all
eventually will make the change.
In the face of outspoken opposi-
ton from Secretary of State Hull
and others. the Maritime Commits
sion prepared for President Roose-
welt today report which was said
to hold that transfer of United
States ships to registry in Pam
anna would not involve accept
ance of any responsibility by this
Government.
Earlier this week the commission
decided to approve transfer of eight
vessels of the United States Lines
in order that they might continue
operating to belllgelent ports closed
to them by the Neutrality Act. At
the request of the President, who
sought time to investigate the situa-
ton himself, final action was de-
layed.
Meanwhile, Secretary Hull ex-
pressed his opposition TO the Uian as
negativing the shipping restrictions
of the Neutrality Act. Senator
Borah, Republican, of Idaho, and
other Senators likewise voiced OPP
position and National Maritime
Union officials came out against the
transfer.
The United States Lines con-
tended. however, that unless the
transfer was made it would simply
have to tie up its vessels which
were in European service before the
Neutrality Act became effective.
Points Likely to Be Stressed.
TIL Maritime Commission report
was expected to be handed to Mr..
Roosevelt when he returns from
Hyde Park, N. Y, tomorrow 1t
will make these points. informed
persons said:
l. That the eight ships which
would be transferred are wholly
owned by the United States Lines.
2. That the proposed tarnsfer
cannot involve any claims against
the United States Government. nor
involve the Government in any re-
sponsibility.
3. That the commission has au-
thority under the 1916 Shipping Act
to pass on the lines application for
transfer of registry.
If the ships do sail under the
Panama flag, it is expected to be
with foreign officers and crews, since
the Neutrality Act forbids American
citizens to travel in belligerent
waters.
Advertise in London.
In London. according to the Asso-
ciated Press. the United States Lines
advertised today for deck officers,
engineers, electricians. machinists
and chief stewards" and officials
there looked on the dislocation of
service due to the Neutrality Act as
temporary.
Mr. Roosevelt said at Hyde Park
yesterday that he had asked the
commission to hold up action until
he could investigate personally the
relation of the proposed transaction
to national defense and maritime
competition.
Not Informed on Hull View.
Mr.. Roosevelt said he did not believe
neutrality questions were involved,
pointing out that the United States
could not be involved in an inter-
national incident if one of the
transferred vessels was sunk while
flying the Panamanian flag.
The President said he had not
been informed then of Secretary
Hull's objections to the proposal.
Mr.. Hull had voiced his opposition
at press conference here, saying
he wanted to preserve absolute in
tegrity of the Neutrality Act so there
could not be even the appearance of
the Government taking any course
that might negative its policies.
Senator Borah, calling the proposal
"manifestly a subterfuge" to evade
Neutrality Act bans against American
ships entering belligerent ports and
danger zones, promptly took issue
with Mr.. Roosevelts comment that
neutrality questions are not in
volved.
Suppose Panama, in spite of her
great navy, fails to protect these
ships and they are sunk?" Senator
(See SHIPPING, Page AID