Evening Republican, Volume 18, Number 207, Rensselaer, Jasper County, 2 September 1914 — M ADOO ENDORSES PURCHASE OF SHIPS [ARTICLE]

M ADOO ENDORSES PURCHASE OF SHIPS

Hearings Concluded on Alexander Bill Which Provides for Organization of $10,000,000 Company.

Washington, Sept. I.—The right of the United States to buy merchant ships of any nationality for neutral uses cannot be disputed by any nation, declared Secretary McAdoo of ‘the treasury department today, before the house merchant marine committee,* supporting the admlhistration merchant marine bill. Mr. McAdoo refused, however, to discuss the diplomatic phases ofthe situation, when asked if protests had been received from Great Britain at France against the possible government purchase of German vessels.

Hearings on the bill* were concluded toejay and it will be taken up tomorrow for immediate comz,taittee action. An early report to the house is expected.

Secretary McAdoo heartily endorsed the Alexander bill which provides for the organization of a $10,000,000 corporation, with power to buy, build and operate ships in the foreign tiade and the government as majority stockholder. He said that as some of the lines to be established would probably be operated at a loss, private capital would not be attracted, the government probably supplying the entire capital. ' ‘'Do you understand,” asked Representative Saunders, “that there is grave objection on the part of Great Britain and France to our taking over the German bottoms which have been driven out of the fofelgn trade by the war?” “Of course, I cannot discuss the diplomatic phases of the question,” said Secertary McAdoo. “That is the business of the state department. It cannot be successfully disputed, however, that this government has the right to buy ships from German companies or any one else so long as it buys those ships for neutral uses.” "The ships are not owned by the government. They are owned by private citizeris and the money, would be paid to citizens, not to the government,” said Mr. McAdoo. “But it is said that these lines are so closely connected'with the government that payment would be practically to the government,” Mr. Saunders persisted. "There is no more punctilious citizen of the United States with respect to neutrality,” he contnued, “than the presdent, who would be the chief representative of the government in the company to be organized under this bill. We can rest assured of absolute neutrality.” The secretary asserted that, the government would be* exactly in the same position as a private stockholder, so far as international conditions were concerned and that the question of sovereignty would never be raised fn a prize court.