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May, 1919 future of the American merchant ma- rine, provided, of course, congress fol- lows the recommendation made. I see no real grounds upon which objections could be raised to the provisions of Mr. Hurley's plans. I think that it is gen- erally agreed that a fair return should 'be made on capital invested. Before the war, there were very few ships, be- 'cause the shipbuilding yards were not earning a fair return. They were on the verge of bankruptcy, because they had to accept business below cost. Many of the operating lines were faced with a similar problem. Under Mr. Hurley's plan, the ships are to be sold at the world market price. This will take away from the English firms the incentive for slashing prices and will lead to.a development of the American shipbuilding yards. However, it does mean that the most efficient yards will get the business,and that the oper- 'ating companies must handle the ships in 'a capable manner or be relieved from 'control. I think that the Merchant Marine De- velopment Fund is a splendid idea. It is_a new idea in shipping and one that 'should result in the development of our foreign trade. It will be of consider- 'able assistance to the vessels that pioneer the way, and will not place a burden that the other lines cannot well stand. Changes Needed to In HAVE carefully studied the plan proposed by Mr. Hurley and the general principles stated 1- ean heartily endorse. With his sugges- tions as to some of the details I am unable to agree, not because the ideas are not good but because they do not appeal to me as capable of being worked out practically. I agree heartily with his statement in favor of private ownership and op- eration and his expression "the for- malities necessarily surrounding gov- ernment operations are not suited to the successful conduct of a shipping venture, requiring quick decision, sud-. den reversals of policy and the as- suming of great hazards. The suc- cessful shipping man in an emergency consults no book of rules. He con- sults only his wits," also with his remarks as to return cargoes--"Such operations require a degree of special negotiation and freedom from con- trol to which government operations are entirely unsuited. They cannot be standardized. No rule can be laid down which a government employe could follow, for the conditions are constantly shifting, and in this tramp business the competition of the world must be met, facility with facility." THE MARINE REVIEW insurance feature is to be com- mended. Briefly, the policy of American built, American controlled, American in- sured is very satisfactory and I feel sure that America is to have a merchant ma- rine equal to that of any other power. The EMIL P. ALBRECHT yy SSS By Emil P. Albrecht President, the Philadelphia Bourse I agree with his suggestion that "the ships should be sold at a price which fairly reflects the current world market for similar tonnage," but I think his terms are hardly fair. The cost basis of 25 per cent is all right, but the balance should be extended over a period of 15 to 20 years in- stead of only 10 years, and it should be permitted the purchaser to pay off the mortgage whenever he can do so. I cannot see any reason for com- pelling all purchasers to buy on the same terms and not permit early pay- ment of the mortgage if possible. He says if. the principle were deviated from "we would place the big pow- erful and experienced operator in a position of such great advantages that new blood and brains hardly would dare venture into the business." I should suppose experienced people are what is needed--he says so him- self in his argument in favor of pri- vate ownership. In my judgment we need not worry about that feature. The inexperienced man will not suc- ceed merely because the big experi- DW? uy Drove 220 Best Plan Suggested By George A. Gaston President of Gaston, Williams & Wigmore R. HURLEY'S: is by far the best plan that has been suggested. It is definite and literal in its sale terms and in its provision for government regulation is less severe than I expect- ed. Some modification must be made. For example, more elastic provision must be made for the tramp steam- ship trade. In my opinion it is im- possible for the government to fix freight rates, even maximum rates, for the vessel not pursuing regular routes. The exactions of competition are too varia- ble. The stipulation that one director of each company shall be appointed by the government strikes me as_ reasonable. As the government would hold a mortgage on,each ship until it was paid for it would have a sort of partnership interest. As soon as the payment was completed I believe the government di- rector should retire. The provision for a merchant marine fund to aid in the development of new trade routes strikes me as good. I must add, however, that I have not yet had time to study the Hurley sugges- tions in detail, but they seem reasonable. enced one 1s not permitted to pay off his mortgage. Mr. Hurley's suggestion of a "Mer- chant Marine Development Fund" is perhaps good in theory but I cannot see that it will work out in practice. An interest charge of 5 per cent on the mortgage might be all right at the present time, but there is not 'a difference of 1 per cent between this and what the government is now paying on the loans. : Furthermore, it is questioned by those familiar with the marine insur- ance business that the government can carry the insurance on its equity in the ships at 1 per cent less than the regular companies. The govern- ment's expenses are as great or great- er to carry on this work than are those of the companies and if the formation of new. insurance com-. panies is to be encouraged, the gov- ernment ought not to take away any business that they might carry. It would be all right for the govern- ment to carry (and it should do so) any that they could not, but it ought not to take the business away from them. I feel that the development fund would not amount to anything like