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UNA Rulings on al RI Wy HANGES made by the senate C committee on finance in the ad- ministration ship purchase bill have undoubtedly gained added sup- port for it in the upper branch of congress. Its pasage and final enact- ment at this session of congress is confidently predicted by administra- tion officials. While the Republicans in the senate have said they would not filibuster against the bill, pro- longed debate on the measure seems probable. Most, if not all, of the Democratic senators who opposed the bill when it was in the senate during the sixty- third congress, are understood to have been whipped into line by reason of amendments the finance committee adopted. The bill was approved at the Democratic caucus, which, however, was not made binding. The principal and most significant feature of the caucus was the little pleasantry that passed betwen Senator Stone, of Mis- souri, who has consistently supported the shipping bill, and Senator Clarke, of Arkansas, who has been its most vigorous opponent on the Democratic side. These two senators engaged in a hearty handshake after the caucus session was over. Latest Amendments The -chief amendments made in the bill by the finance committee, which have brought recalcitrant Democrats into line, are: Elimination of the secretary of the navy and the secretary of commerce as ex-officio members of the board. Imposition of limitations upon the powers of the shipping board so that neither the board nor any corporation, formed under section 11, in which the United States is then a stockholder shall purchase, lease or charter any vessel— (a) Which is then engaged in the foreign or domestic commerce of the United States, unless it is about to be withdrawn from such commerce without any intention on the part of the owner to return it thereto within a reasonable time; Marine ‘Matters -Oovernment Ss SS Improvements to Waterways Hints to Navigators —§§“MH“__§__“i____itieinNtiionmmDvive'.|nKtcTTTK.K.:Kni.iVi ’ pecte Z 7 b) Which is under the registry or flag of a foreign country which is then engaged in war; (c) Which is not adapted, or cannot by reasonable alterations and repairs be adapted, to the purposes specified in the section; (d) Which, upon expert examina- tion made under the direction of the board, a written report of such exam- ination being filed as a public record, is not without alteration or repair found to be at least 75 per cent as efficient as at the time it was originally put in commission as a seaworthy ves- sel. While the board is given the power in section 5 to construct, purchase, lease or charter, and in section 7 to charter, lease and sell vessels so pur- chased, constructed or transferred, it is nowhere in the act given power to operate these vessels. The only authority to operate vessels either built, purchased or leased under the act through a governmental agency is found in section 1l. This section empowers the board—if, in its judg- ment, such action is necessary to carry out the purposes of the act—to form one or more corporations with a total capital stock of not exceeding $50,- 000,000, and authorizes the govern- ment to subscribe, through the board, for not less than a majority of the stock. These corporations are em- powered to purchase, construct, equip, lease, charter, maintain and operate merchant vessels in the commerce of the United States. Endangers Coastwise Trade The objections which have been made to this act, based upon the ground of governmental ownership and operation, grew out of the power of operation given these corporations in this section. By way of concession to these objections, the house bill in- corporated in the act a provision limiting the operation of vessels on the part of such corporations to a period of five years from and after the close of the European war. The senate bill further limits the authority 315 () l lis = =] is Doing to Pass of such corporations so that they may not operate the government vessels in foreign trade unless it is impossible to lease such ships to private interests. The vessels may engage in coastwise trade, which means that business is opened up to foreign built vessels acquired by American citizens under the act. The jurisdiction of the ship- ping board is limited to vessels on the high seas and on the Great Lakes. The power to register the vessels as naval auxiliaries was eliminated. When in times of war the government commandeers American vessels, com- pensation therefor shall be based upon normal conditions. Vigorous. opposition has been made by Republican senators against that feature of the bill permitting foreign built vessels owned or operated by the government or leased or sold to private firms or corporations to en- gage in the coastwise trade. Fear is expressed that such a provision will demoralize the coastwise trade of American ships and greatly injure the business of American ship yards. While the concensus of opinion of shipping interests appears to be that the senate measure is an improvement over the house bill, most of them are still strongly opposed to it and point out that its principle, that of govern- ment ownership and operation of ves- sels, remains unchanged. They also claim that the power given the board to regulate rates, practices, etc. of vessels is entirely too severe. Want Standardized Ships Both the house committee on mer- chant marine and the senate commit- tee on finance have supported the idea that the American merchant marine should be built up through a system of building standardized ships. The suggestion that this be done has come from H. Platt Stratton, of the Amer- ican Bureau of Shipping, New York City, and from naval constructors. They have said that the great steel plants of this country should take hold of the matter and co-operate to bring about this end. It is the