The Wilmington morning star., 1945-03-11
In The Nation
By ARTHUR KROCK
In the New York Times

II In Tue new YOIh 1IulcS
WASHINGTON, March 10-In some import
ant respects, the problem presented to the
American people by our prospective shipping
surplus and our interallied advantage in this
category is typical Of many which must be
solved on a basis that will protect Our own
economy and enterprise and yet not impress
our wartime associates as greedy or callous.
Congressional committees are already framing
legislation for ship disposals, and the perplexi-
ties that confront them are many in laying that
basis.
These perplexities, which will be repeated on
all the industrial fronts of domestic peace, were
recently discussed before the House Committee
on Merchant Marine by Almon E. Roth, pre-
ident of the National Federation OF American
Shipping, and a summary seems to be worth
rescuing from the more immediate news.
This week Leo T. Crowley, the Lend-Lease
Administrator, gave his pledge to another
House committee that lend-lease as such would
not be used in any way for "the purposes OF
postwar rehabilitation and reconstruction
Whatever American supplies are to be so
employed he said, would be furnished by
other agencies and paid for. The discussion
arose over certain implications to the con-
trary which were being read into the French
lend-lease agreement for what is called the
second phase and the committee accepted
Mr.. Crowleys disclaimer.
But the shipping industry and others fear
that the net effect of postwar policy might
be to some degree the same as if lend-lease
contract goods were used. They see an opport-
unity for this in pricing formula of the French
arrangement, and Mr.. Roth saw another In
a section Of the draft on which the House
Committee is working.
Urges Two-Year Delay
The draft provides that ship transfers to
non-citzens shall be by sale only. But Sched-
ule l of the French agreement extends $220
millions credit in freight charges, and these
are described as the rental and charter OF
vessels furthermore, the committee bill
would permit sales of ships to non-citizens i'm
medately at the end of the war. Mr. Roth
urged that no such sales, except OF Libertys
and tankers, be made for two years thereafter
so that time will be afforded to the American
industry to know how many and what types
of fast vessels will be availible and the date
at which they will be restored to private
operation" Noting also the strength of the be-
lief that we should charter our surplus tom
mage to foreign competitors on favorable terms
until they can build themselves new fleets, he
said this procedure would prejudice the in
terests who buy War-built ships from the gov
own national interest hardly seems called
for he said.
He quoted Vice Admiral Land, chairman
Of the Maritime Commission, to the effect
that if the war lasts much longer 1.-The British
will not be very shy of ships,'' but only the
Norwegians, Danes, Belgians, Dutch and Yug-
oslavesOn these representations, Mr.. Roth
proposed for the industry that study be made
''of the possibility of obtaining commitments
frox otba rfrin IN 1Iybn oft
sells may be transferred, which will protect
American ship operators against unfair prefer
ences, currency, blocs and other forms OF dis
crimination.'' And in general he recommend
ed that-especialy in view of the higher op-
Grating costs under our fag-payment and in
terest requirements for foreign purchasers
shall not be more favorable than those granted
to American citizens.
Section (e) of the committee draft auth
orizes the Maritime Commission, with re-
spect to ship disposals, to avail itself Of the
services of Federal agencies engaged in ex-
tending loans or credits. II this section, said
Mr. Roth, is not designed,to open ship disposals
to lend-lease or extend the authority OF other
agencies to perform a similar function, its
inclusion is unnecessary. If it has this design
and permits this extension, it should be strick-
en- from the bill.
Thorns in the Path
The President and Congress are going to
find it very difficult to lay down a policy for
all these postwar disposals that is fair to and
considerate of the American economy and yet
will not make hoggish and even heartless use
of the favorable position we acquire by the
location of the United States, its productive
power and the late date of it's entrance in the
war. And, when that difficulty is surmounted
at least to the satisfaction of reasonable
persons in interesEthe Federal agencies will
have even harded task in administering it,
item by ITEM One of the essentials of ship dis
posals to our own citizens is that domestic
purchasers at established prices shall not
later find similar sales to competitors at
prices, as happened in the last war. A "fall
clause" permitting downward adjustments to
the original purchasers in such instances,
would take care of that. But it is only one
of the myriad complications of the disposal
problem, which the plea of shipping federat-
ion serves to illustrate.
Another complication in this guineapig in
dustry arises from the fact that after we have
met American shipping requirements for COM
mercial use, made max mum foreign sales
and met the defense needs of the Navy there
may be an unabsorbed surplus OF 24,O00,00O
deadweight tons. The industry holds that, to
prevent glut on the seas and disorganization
Of seaborne trade, this tonnage should be laid
up or scrapped.
Very naturally our maritime allies are
watching developments.