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224 Hurley may find that the insurance rates he suggested, obtained either from American companies or the government, are a little higher than could be ob- tained elsewhere. But I don't want to criticize the plan. I believe Mr. Hurley set forth his ideas so that everybody could discuss. them and thus the best arrangement could be reached. Plan Possesses Merit By J. B. Austin Jr. President The Globe. Line . ees the plan suggested by Chair- man Hurley of the shipping board for the future of the merchant marine: of this country has, in a general way, a great deal of merit. There are many minor details that require further elaboration and uwn- APPROVE of Mr. Hurley's pro- gram in general, especially when he says that the American mer- chant marine should be privately oper- ated. His terms of sale of the gov- ernment-owned ships are in the main satisfactory. The proposal to ask as an initial payment but 25 per cent of the value of the ship and allowing the operator 10 years within which to com- plete the purchase is liberal enough, and the Luckenbach line would be willing to buy ships upon such terms. dt ts doubtful to me, however, whether there are sufficient American insurance companies to underwrite the total of this shipping property. The marine is now very large, and it will require more companies and com- panies of larger capital to afford an adequate insurance market. Further- more, I do not think the shipping board should retain any authority over the routes or the rates charged by the private operating companies. . The government does not undertake to control the markets and the prices of American industries. If the shipping board is really de- sirous of having the private Amer- ican operators take over this prop- 'erty, some assurance should be given that the operator shall not be threat- ened with government competition. Suppose all the government ships are not sold? What will the board do with those remaining on its hands? Will the board attempt to run those ships in competition with the private companies who have pur- chased ships in good faith? The threat of government competition will cast a serious doubt over the success of the whole scheme. In addition the shipping . THE MARINE REVIEW doubted changes, such as the insurance feature, the control of rates, etc., but I can see no insurmountable obstacles in the plan as presented to the future successful operation of vessels under it. The Globe line would be willing to purchase vessels under this plan tt tue minor details could be straightened out. Of course we would expect, if we pur- chased vessels, to be permitted to op- erate them in the trades we select with the approval of the United States gov- ernment, or in the case of boats for tramping purposes, we should be al- 'owed to so use them without embar- rassing or annoying restrictions. Mr. Hurley's plan is a better solution of the problem than I had expected to see and the most gratifying feature of it to my mind is the strong stand taken against government ownership and operation which should be discontinued. Buy Under Sales Terms By Edgar F. Luckenbach President, the Luckenbach Line EDGAR F. LUCKENBACH private operator will also be com- pelled to take into consideration the decreasing value of- tonnage. And the value of tonnage will continue to decrease if the shipping board or the Emergency Fleet corporation is permitted to continue its shipbuilding. The more tonnage the government builds from now on, theless will be the value of the tonnage it has to offer for sale. The private operator does not wish to see the market Rlutted with' ships. , This is certain, May, 1919 Good Basis for Study By P. A. S. Franklin President of the International Mercan- tile Marine T is very satisfactory that Mr. Hur- ley has taken such a broad view of the situation as to come out in a defi- nite way and indorse private owner- ship. This is the only way in which an American merchant marine can be built up. Mr. Hurley's proposals form a good document for a basis from which to discuss the whole subject. Generally speaking, shipping requires. encouragement. It certainly should not be burdened with regulations and con- ditions which are not applicable to or not enforced upon the foreign flag steam- ers with which our steamers under the American flag must come in active com-- petition. The government has 14 piers im the harbor of New York, and the privately-owned ships are prevented from making use of them. Many ships are today lying idle for want of pier space. We are compelled to- Pay as much as $000 a. day for a small berth to dock or lay a_ ship, while these government-owned or con- trolled piers are vacant, held for the- convenience of merchant vessels in the service of the navy or other branch of the government. That is but typ- ical of the conditions resulting when you have the government engaged in an industry which private operators: are also engaged in. Assures Future Suecess By H. R. Sutphen Vice President. of the Submarine Boat Corp. HIS is the first great constructive- action that the administration has taken. It comes at a very opportune time, when all who are concerned with the future of the merchant marine are groping about wondering what the pol- icies of the government would be. I think that it will be a considerable sur- prise for our European friends. Cer- tainly the announcement of a policy of private ownership was a surprise to us. Nothing could be fairer than to sell" the ships that have been built at the world market price for tonnage. There: should be no difficulty in arriving at this price. The terms upon which the ships may be purchased from the gov- ernment are very considerate, and I think that the interest charged is rea- sonable. I no longer have any doubt as to the-