Fletcher Objects

On Jan. 5, the President Harrison, one of seven ships bought from the Government by the Admiral-Oriental Line* (TIME, Sept. 24), sailed from San Francisco inaugurating the first regular round-the-world service under the American flag. The six other ships, named for Presidents Hayes, Adams, Garfield, Monroe, Polk, Van Buren, will follow the President Harrison at two-week intervals, will stop at 21 ports, will circumnavigate the globe in 112 days each, according to schedule.

A few days after the President Harrison sailed, Senator Duncan U.

Fletcher of Florida, ranking Democrat of the Senate Commerce Committee (in charge of shipping legislation) loudly objected to the terms of the sale which had taken place four months earlier.

The terms had been kept secret, Chairman Farley of the Shipping Board explained, because their publication might have induced unfair and disastrous competition by foreign lines.

The terms of the sale are now reported. The seven Presidents were sold for $550,000 each--the lot for $3,850,000, terms 25% in cash or letters of credit maturing in two years and bearing 4% interest. Senator Fletcher points out that the same ships cost, when built during the War, about $4,070,000 each, or a total of $28,501,836.

In addition, five of these ships, which had been operating between New York and London, are to be replaced in that service by five former transports which are now being reconditioned, at a total cost of $1,784,150./- Said Senator Fletcher: "I do not charge that there was anything wrong in this sale. It was open and above board and probably was the best price that could have been obtained. My position is that we ought not to get out of operating ships if we have to 'do it at such a loss as this.

"I want to see the American Merchant Marine the equal of that of any nation, and it appears to me that the only way this can be done now is for the Government to operate the ships it acquired during the War. If the policy, however, is to dispose of them, then they ought to be sold at a fair price and nothing like the sacrifice represented in the sale of the ships to the Dollar Line." The Shipping Board defended itself, pointing out that the Government has a guarantee that the ships will be operated around the world for at least five years--a consideration weighing as much as the money received; that the ships had been operating at a loss of $55,000 or $60,000 a voyage, making a yearly deficit of $3,000,000; that, therefore, a price of $3,500,000 is a fairly good profit.

*Controlled by the Dollar interests.

/- The five transports being reconditioned are known as the "Hog Island B-type" with a gross tonnage of about 7,500 as compared with the 10,500-ton President ships. They are the Marne, Ourcq, Aisne, Tours, Cantigny, and are to be re-christened respectively American Trader, American Farmer, American Merchant, American Shipper, American Banker,