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12 showing good judgment in so far as the future of the American ma- rine is concerned in taking the stand it does. In any case the decision of the board to terminate the negotia- tions for the sale of its transatlantic lines is justly subject to the closest scrutiny. Testimony of the chairman of the shipping board and the presi- dent of the Fleet corporation before a subcommittee of the senate commit- tee on commerce early in January may be taken to represent their present policy of reluctance to let go of the United States lines. Chairman O’Connor said that he was “absolutely in favor of selling the vessels if the right kind of direc- torate backed the purchaser.’ By which he had in mind large commer- cial interests who would give these vessels the transportation of their own freight. These directors would have to show that they would patronize American ships. The chairman fur- ther stated that there were no imme- diate prospects of getting private op- erators for the United States and American Merchant lines, and that though the offers submitted by W. H. Winchester & Co. Inc., and Gibbs Bros. Inc. and by William F. Kenny and his MARKINE REVIEW Bids Received by Board J. H. Winchester & Co. and Gibbs Bros. Inc.: Offered to purchase the five vessels of the American Merchant lines (the Winchester company are now operating these vessels for the board) for $200,000 each, a total of $1,000,000. And to char- ter the vessels of the United States lines on a hire of $5000 a month, agreeing further to pay the government 50 per cent of the net profits, accruing to an operating company to be formed, from the operation of both fleets as well as the operation of two new _ passenger liners which the bidders propose to build at a cost of not less than $30,000,000, after the deduction of depreciation and 6 per cent on the capital invested by the company. A loan from the government of two-thirds of the cost of building the two new vessels was also included. William F. Kenny and _ Associates: Offered to buy the five vessels of the American Merchant lines for $200,000 each, a total of $1,000,000 and to charter the United States lines. An offer was also made to purchase the S. S. AMERICA for $2,000,000 after reconditioning. Atlantic Transport Co.: Offered to buy the LEVIATHAN for $4,000,000. Potter Steamship Co: Offered to buy the PRESIDENT HARDING or the PRESIDENT RoosEvELT for $1,050,000. Kermit Roosevelt, and Associates, H. H. Raymond, E. P. Farley, E. J. McCor- mack and A. V. Moore: Offered to buy the five vessels of the American Merchant lines for $252,000 each, a total of $1,260,- 000 on the condition that the operation of the United States lines be allocated to the new company to be organized should the bid be accepted. generous received, they were neverthe- less considered inadequate. It was made February, 1927 ping board would have rejected all offers for the transatlantic lines at its regular meeting on Dec. 14 if the senate had not ordered an inquiry into the proposed sale. In fairness it must be admitted that the board is faced with an ex- tremely complicated and difficult sit- uation. Now that American flag passenger ships are in operation in transatlantic service they will be con- tinued. There can be no question of withdrawal. We believe that through- out the land there is overwhelming sentiment for maintaining and im- proving this service so that its ships will be second to none in speed, com- fort and luxury and its personnel a credit to the splendid traditions of American seamanship. The great problem is to decide upon a wise policy to accomplish this pur- pose with a minimum of aid from public funds, a policy that will effect a healthy and vigorous renaissance of the American merchant marine ap- proaching proportionately to some de- gree of its pre-eminence in the early history of the nation. The suggestions of a policy as out- lined in the testimonies of the chair- man of the shipping board and the associates were the most clear by Mr. O’Connor that the ship- (Continued on Page 40) High Points in Testimony Before the Senate Committee on Commerce TNO Conace Chairman of the United States Shipping Board 1. He would sanction the sale of the United States lines and the American Merchant lines for a fair price. 2. A fair price for the two lines was stated to be $15,000,000, and that the lines should not be sold under any conditions for less than the cost of -re- oe get dalled the LEVIATHAN or approximately $10,- 0,000. 38. That the lines must be sold to a company that can operate them. 4. Talk about an American merchant marine without provisions for replacements “makes us the capital joke of the world.” 5. Cost of building vessels in the United States is 82 to 40 per cent more than in foreign countries. 6. There is very little difference in cost of opera- tion, probably less than one-half of 1 per cent. 7. In favor of proposal to build two additional -ships of the LEVIATHAN class for transatlantic serv- ice and that the President has not suggested refrain- ing from the use of the shipping board construc- tion loan fund, which now totals about $60,000,000, for this purpose. Plans for the two proposed’ ships have been prepared with the approval of the navy department as to their suitability for use in na- tional defense. 8. If the American merchant marine is to be privately operated a subsidy of some nature must be provided. A subsidy is essential and is now in force in England and France. 9. If mail contracts were turned over to the mer- chant marine of this country millions of dollars would be added to its income annually. 10. It is just as important to have shipyards as it is to have ships in the merchant marine. Jan. 3-4-5, 1997 Gen. A. C. Dalton President of the Emergency Fleet Corp. 1. For government ownership and operation of the merchant marine under present conditions. 2. If congress would provide sufficient funds such operation could be made profitable. 3. The present law should be changed so that the merchant marine may be owned and operated as a private enterprise by the government, if other plans provided in the merchant marine act fail. The American people have displayed a _ will- ingness to support the building of a national Amer- ican merchant marine through government owner- ship and operation. 5. Defended government operation against ac- cusations of inefficiency by calling attention to the construction of the Panama canal at a cost of $365,000,000 under the direction of a lieutenant colonel of engineers after the failure of a great cor- poration and a practical failure of two of the out- standing engineers of America. 6. Board now operating 24 services reaching to practically every part of the globe. Approximately 327 vessels are employed and the cost to the gov- ernment for the fiscal year 1927 will be approxi- mately $17,500,000. 7. The United States lines earned $1,600,000 in profits on its operations from July to October, 1926, an imerease of nearly $1,000,000 over the same pe- riod of 1925, and that profits during 1927, it is an- ticipated, will be greater than any previous year. 8. Asked if he thought it wise to sell the lines when they were making a profit he replied that to carry out the terms of the merchant marine act they must be sold but that his own personal opinion was “not to sell.” 9. If the American flag is to remain on the high seas replacements must be provided for.