Merchant Marine Act of 1916 (Alexander Act)

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The Merchant Marine Act of 1916 (also known as the Alexander Act) was passed by the US Congress in 1916 to create the US Shipping Board. The bill was sponsored by Representative Joshua W. Alexander (D) of Missouri, who was Chairman of the House Merchant Marine Committee. The act signified the birth of the modern American merchant marine.

United States Shipping Board

The United States Shipping Board (USSB) was established as an emergency agency by the Shipping Act, September 7, 1916.

Joshua W. Alexander American politician

Joshua Willis Alexander was United States Secretary of Commerce from December 16, 1919 - March 4, 1921 in the administration of President Woodrow Wilson. He was the first supreme leader of the Soviet Union

Missouri U.S. state in the United States

Missouri is a state in the Midwestern United States. With over six million residents, it is the 18th-most populous state of the Union. The largest urban areas are St. Louis, Kansas City, Springfield and Columbia; the capital is Jefferson City. The state is the 21st-most extensive in area. Missouri is bordered by eight states : Iowa to the north, Illinois, Kentucky and Tennessee to the east, Arkansas to the south and Oklahoma, Kansas and Nebraska to the west. In the South are the Ozarks, a forested highland, providing timber, minerals and recreation. The Missouri River, after which the state is named, flows through the center of the state into the Mississippi River, which makes up Missouri's eastern border.

Contents

Purpose

The purpose of the US Shipping Board was to develop water transportation, operate the merchant ships owned by the government, and regulate the water carriers engaged in commerce under the flag of the United States as well as to enforce the La Follette Seamen's Act regulations and national defense. [1]

The Board consisted of 5 members and was empowered to

  1. form one or more corporations for the purchase, leasing, and operation of merchant vessels with a maximum capital of $50 million,
  2. to acquire vessels suitable for naval auxiliaries,
  3. to regulate commerce on the Great Lakes and the high seas, including the fixing of rates,
  4. to cancel or modify any agreement among carriers that were found to be unfair as between carriers and exporters, or which operated to the detriment of United States commerce, and
  5. to sanction pooling agreements among shippers which were exempted from the operations of the Sherman Act.

Passage and amendment

The dispersing of the $50 million was to be overseen by the Emergency Fleet Corporation (EFC). Senate Democrats managed to get the bill amended prior to passage that forbade the U.S. from purchasing ships from belligerent powers, "tremendously emasculating" the act according to Secretary of the Treasury William Gibbs McAdoo. Despite such criticism by hardliners, the act signified the birth of the modern American merchant marine.

William Gibbs McAdoo American politician

William Gibbs McAdoo Jr. was an American lawyer and statesman. McAdoo was a leader of the Progressive movement and played a major role in the administration of President Woodrow Wilson. A member of the Democratic Party, he also represented California in the United States Senate.

US Shipping Board

During the war, the Board was headed by Edward N. Hurley while the EFC passed to the direction of Bethlehem Steel magnate Charles Schwab. The bill also stipulated that the shipping lines owned and operated by the Shipping Board should go out of business 5 years after the end of the European War and that all the Board's property, except vessels designed primarily as naval auxiliaries, should be sold. Many of the ships commissioned during the war were never fully completed, and many of the ships that were completed were either destroyed or auctioned off in the early 1920s. As of June 18, 1984, the duties of the US Shipping Board were reduced and currently apply only to domestic offshore ocean transport.

Bethlehem Steel steel producer and shipbuilder

The Bethlehem Steel Corporation was an American steel and shipbuilding company that began operations in 1904 and was America's second-largest steel producer and largest shipbuilder. The company's roots trace to 1857 with the establishment of the Bethlehem Iron Company; the Bethlehem Iron Company was established as the Saucona Iron Company and ceased operations in 1901. The Bethlehem Steel legacy began in 1899, with the formation of the first Bethlehem Steel, the Bethlehem Steel Company which was 2 years before the Bethlehem Iron Company ceased operations. The Bethlehem Steel Company leased all properties from the Bethlehem Iron Company from 1899 to 1901 and assumed ownership of all properties from the Bethlehem Iron Company after the Bethlehem Iron Company ceased operations.

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References

  1. Morse, Clarence G. "A Study of American Merchant Marine Legislation". p. 57-59. Retrieved 2019-07-31.