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LIE E SEN RTE AE SRS Ne PONTO TO EN A RE ee LE RE Se Te RTT oT i May, 1919 present time to insure the entire fleet. The propor- tion of government insurance would decrease as the purchaser's equity mounted until at the end. of 10 years, all of the ships would be. insured by private American insurance companies. The proposal is quite frankly an attempt to remove from the American market the English companies which long dominated it, but whose relative strength © has been seriously weakened by the great growth of American companies in the past few years. This proposal if put into effect would undoubtedly be found to be satisfactory to American shipowners. In favor of American firms, 95.8 per cent; op- posed, 4.2 per cent. In favor of government insurance, 81.4 per cent; opposed, 18.6 per cent. V--TRANSFER TO FOREIGN REGISTRY The express permission of the government would be required before any vessel could be transferred to foreign registry, if Mr. Hurley's plan wins its way through congress. Upon the wisdom of. this proposal, a wider divergence of opinion is held. This ranges from a whole-hearted approval of Mr. Hur- ley's stand, to a position favoring a free transfer of ships without waiting for government sanction. The advocates reflect a belief that during the period when our merchant marine policy is being formulated, and our merchant marine developed, some check should be retained on the possibility of these vessels going to another flag. In favor of, 70 per cent; opposed, 30 per cent. - VI--FeEpERAL INCORPORATION Mr. Hurley lays great emphasis on the necessity of protecting the public interest. He aims to accom- plish this by federal incorporation of all companies purchasing vessels. No stock is to be issued in excess of the money value actually paid in on vessel property, and no stock is to be issued or transferred to an alien.. The head of the shipping board sees in this proposal a satisfactory method of avoiding watered stock, profiteering and stock jobbing. The shipping fraternity of the country unites with Mr. Hurley in his desire for a successful check on any stich practices. To many, however, federal incor- poration has a different interpretation, similar to that which has led to agitation for such a measure for some years. The necessity in foreign trade of deal- ing with the nationals of many foreign countries gives rise frequently to a confusing condition as foreigners, ignorant of even the names of American states, con- | sider the present form of state charters more or less valueless. The restriction placed on the per- missible capital is given by some as a drawback, but in general this proposal is quite actively supported. In favor of, 65.6 per cent; opposed, 34.4 per cent. VII---GovERNMENT DIRECTORS The nation's sentiment on this heading, as evi- denced by the table shown on page 220, is slightly favorable to the acceptance of the Hurley proposal. The plan 'calls for one member of the board of directors of each company purchasing a vessel, to be named by the government. This director should draw no salary either from the steamship corporation, or from the government, receiving only the customary director's fee for each meeting he attends. In gen- eral. the sentiment reflects a belief that the proposal THE MARINE REVIEW ae 219 is relatively unimportant and that it is one which might cause some harm arid probably would result in little good. 4 'To many of those in the marine field, the diffi- culties in the way of securing competent directors, under the restrictions. outlined, seem insurmountable. On the other hand, the large equity which the government will retain in the vessels in the early years has led a majority to feel that federal repre- sentation on the board of directors is justified. In favor of, 52.5 per cent; opposed, 47.5 per cent. _ VITI--PERMANENT COMMITTEE OF DriREcTORS The sentiment on this proposal follows closely that on No. VII. If government directors are to be provided, there is little tendency to question the bene- fit of having them study regularly the broad, general problem of the American merchant marine, and through such an organization to establish a continu- ous method of interchanging views between the ship operating companies and the shipping board. The burden imposed by the periodic meetings at Washing- ton, has given rise, however, to some skepticism over the ability of the government to find directors of ability who can give their time to any such plan. In favor of, 57.4 per cent; opposed, 42.6 per cent. IX--MercuHant .Martine DEVELOPMENT FuND By this suggestion, Mr. Hurley is quite freely given credit for having devised an ingenious .method of meeting a difficult problem. This fund is to be se- cured by 'setting aside the difference between the customary commercial charges for interest and insur- ance, and the rate which the government is enabled to charge. This proposal provides relief in a form not pre- -- viously suggested, and while not meeting the situa- tion in the manner which advocates of ship subsidies favor, it has the advantage of not being open to the objections which opponents of such subsidies raise. It gives an answer to those advocates of government ownership who desire to see the government develop certain trade routes, offering a method of doing this without drawing upon the public treasury. In the same way the money is not taken from the steamship business as the operators are not charged more than current market rates for similar service, whether the service rendered is insurance or credit. The proposal has been welcomed as a really valuable -- suggestion for solving the troublesome problem of -- high operating costs on American ships. In favor of, 74.6 per cent; opposed, 25.4 per cent. - 'X'-- VESSEL MoRrTGAGES While not a direct part of the complete plan sug- gested by Mr. Hurley, the provision to alter the present status of vessel mortgages is considered by -- him as one of great importance. The adoption of his suggestions along this line would call for the third new statute to be enacted by congress, the two others being that providing for federal incorporation and for the continuance of the government in the insurance field. : This proposal is quite widely favored and is gen- erally considered as one to which Mr. Hurley has given considerable thought. In favor of, 83.9 per cent; opposed, 16.1 per cent.