AMERICA'S MERCHANT MARINE

Auckland Star, Volume LIII, Issue 300, 19 December 1922, Page 3

AMERICA'S MERCHANT MARINE

ANOTHER "BLOW." (From Our 'Special Correspondent.) SAN FRANCISCO, November 23. What well-informed shipping men in New York declared a blow to the United States merchant marine was dealt a few days ago, when the United Amerjcan Lines announced that because of the Prohibition regulations they had changed the registry of their two great liners, the Reliance and Resolute, from the American flag to that of Panama. This step will enable them to sell liquor after the vessels pass the three-mile limit. The Reliance and the Resolute are the third and fourth largest vessels now in operation flying the American flag, being exceeded in tonnage only by the George Washington and the America of the United States Lines. The Resolute is a 20,200-ton vessel, and flie Reliance is slightly smaller, 19,080 tons. In explanation, Mr. R. H. M. Robinson, president of the American Ship and Commerce Corporation and the United American Lines, said in New York: "We keenly regret that conditions have arisen which have necessitated our arranging for the operation of the Resolute and Reliance under a foreign flag. Early last summer we arranged to charter the Resolute to Raymond and Whitcomb Company for a cruise around the world, and the Reliance for a cruise to the West Indies and South America. Following the publication of the Attor-ney-General's opinion as to the application of the Federal Prohibition Law to American ships on the high seas, more than fifty passages were cancelled on the Resolute alone, which could be attributed to this ruling. The cancel lations involved for the most part tho more expensive accommodations. Because of the keen competition of cruises arranged for foreign steamers, we believe that the cruises of the Resolute and Reliance cannot be carried out successfully unless the passengers can be offered the same service and privileges as is offered on foreign ships. ADOPT FOREIGN FLAG. "Therefore, in view of the large sums involved, and in fairness to our stockholders, we have completed arrangements to transfer the ships" to a foreign flag. We have selected the Panama flag, because we believe it to be the most acceptable to the interests of the United States. "The financial investment in these ships and the management will remain, as in the past, wholly American. Follow, ing their cruises the ships will resume sailings between New York and Europe, in which they will be operated by the United American Lines, in joint service with the Hamburg-American Line, as heretofore." Two years ago, when the United American Lines took the two vessels over from the Royal Holland Lloyd and placed them in the transatlantic service they reserved the right to transfer them to foreign registry if American law interfered with the profitable operation of the vessels. Both cruisers referred to by Mr Robinson were practically booked full when the Daugherty ruling was promulgated. Then cancellations began to reach the offices of the company, holders of reservations frankly declaring they would not travel on a "dry" ship. This was particularly true of 1 the Resolute, which was scheduled for the world tour. One cancellation represented a loss of 28,000 dols. This suite had been reserved by a well-known banker who intended taking his family around the world. The Raymond and Whitcomb Company put pressure upon the United American Lines to prevent collapse of the cruises. There was a general discussion of the problem by the board of directors of the United American Lines, headed by Mr. W. Averell Harriman, and it was finally decided the only way out of the situation was to change the vessels' registry. QUESTION OF ECONOMICS. Commenting on the change of registry of the two giant vessels, the "New York Tribune" remarked: "The transfer to Panaman registry of the the Resolute and the Reliance of the United States lines, is the first sign of the inevitable movement resulting from the recent decision to enforce the Volstead law on American ships. "The question is one of economics, not ethics, as there is no denying that most Americans are unwilling, and most foreigners simply refuse, to he deprived of the right to take an occasional drink while on the ocean. This is especially true of long cruises, such as the Resolute and Reliance are booked to make. More than 50 passengers were cancelled on the Resolute alone for a cruise around the world when the AttorneyGeneral's ruling was made known. j "The position of the operators is that unless passengers can be offered the same services and privileges on American as on foreign vessels Americans cannot compete successfully. Prohibition, coming on top of the other laws handicapping American shipping, is the last straw. Perhaps the election will cause Congress to take heed of the necessity of so modifying the Volstead Act that the American marine will not be altogether dried off the ocean. The nation cannot afford to lose the shipping advantages that she won as 9 result of the war, advantages vital to the welfare of the country alike in peace and war." Both the Resolute and Reliance were built in 1020 and are triple-screw oilburning vessels. "The transfer of the vessels to foreign registry was inevitable," said Mr. Winthrop L. Marion, vice-president of the American Steamship Owners' Association. "The action of the U.S. Treasury Department in exempting foreign ships from the prohibition law while maintaining it on American steamers made it determined to follow this policy and there is nothing else for American companies to do. I "One of the worst results of this situation is that tho foundation of a naval reserve .for use in time of war, is destroyed at the moment when it was just beginning. Not only is it made impossible for shipping under the United States flag to compete successfully as an industrial enterprise, but the Government loses an important part of its naval defence. "The prohibition ruling comes on top of economic handicaps such as higher wages, greater subsistence and capitul costs, which in the past have prevented the development of America's merchant marine."'