Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-08
Shipping
Continued From First Page.)

Borah asked. will we 60 to the
protection of Panama?
Panama. from a viewpoint of ma
tional defense, is part Of the
United States. Besides, she comes
under the good neighbor policy and
the Monroe Doctrine"
Wheeler Charges "Subterfuge."
Senator Wheeler, Democrat, of
Montana, took the position that while
it would be legal step, transfer of
registry of American ships would be
"a subterfuge."
From a strictly legal standpoint.
they would have the right to do it,"
said Senator Wheeler, because any
American has the right to sell his
property to whomsoever he sees fit.
But, many of those who voted for
the neutrality bill with view to
keeping our ships from carrying
merchandise to belligerent countries,
I am sure never dreamed this kind Of
subterfuge would be used.
1T has always been said we must
have a great Navy to protect our
shipping. I only hope that Panama
does not call on the United States to
protect the merchant marine she
would be getting from the United
States. While I understand this
Government has no mortgage on
these particular boats, certainly they
have been subsidized by the United
States Government"
Subterfuge Denied.
John NJ. Franklin, blunt-spoken
president of the United States Line,
explained his company's attitude to
reporters here. telling them that if
they could get his story over to the
country 1T would take a lot of the
heat off this thing" He denied there
was any subterfuge.
The company applied for trans
fer of eight of it's ships to the
Panama flag on October 81, he said,
because it felt it was obligated to
continue service to its customers on
the North Atlantic routes it had
developed over the past 20 years.
These routes were outlawed to
American vessels under Presidnt
Roosvelt's proclamation of a COM
bat zone around much of Europe,
supplementing the ban in the Neu-
trality Act itself against entry of
American ships into belligerent
ports.
The restrictions would not apply
to any vessels of foreign registry
and flying a foreign flag, even If
American owned. Mr. Franklin
said that if his company's applica-
ton was approved, it would retain
ownership of the vessels involved
through Panamanian corporation
and continue service over its North
Atlantic route with foreign crews
on the vessels.
He explained that although nine
ships were named in the applica-
ton, only eight would be affected,
as the proposal called for transfer
of either the President Harding or
the President Roosevelt, but not
both.
An indication of the company's
belief that its proposal soon would
be approved despite the controversy
here came from London, where AS
ISOLATED Press reported that the
firm advertised for British seamen
and officers to serve on vessels sail
ing between the United States,
France and Britain.
A dispatch today reported the
London Office of the line said the
Neutrality Act restrictions might
cause a temporary dislocation of
service. but that it expected to an
nounce shortly schedule of freight
sailings and to make an announce
ment concerning passenger services
now Cancelled.
Mr.. Roosevelt's action in holding
up Maritime Commission approval
of the transfer and Secretary Hull's
opposition to it we're mentioned to
Mr.. Franklin and he was asked, IF
the Maritime Commission approves,
no matter who else objects, would
you go through with it?"
Absolutely" he replied, land
the sooner they approve it the
better. We are not dealing with
anybody here but the Maritime
Commission"
Legal authority to approve or dis
approve the application rests with
the Maritime Commission. Mr.. Hull
said that even though 1t was not
his departments function to pass
on the matter, he had informed the
proper authorities of his opposition
for what it was worth.
Mr.. Franklin said his company
was ready to meet conditions on
which the Maritime Commission had
indicated it would approve the
transfer. These included withdrawal
of Federal subsidy, which has
amounted to about 81 900 900 q year
on the eight vessels: continued
operation over the same routes; use
of foreign crews, and agreement to
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