New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-27
The Shipping Bill Folly.


Nobody seems to know in what form the
administration project for a govern
ment-owned merchant marine is going 70
be presented in this Congress. In what
lie said about it in his recent message
President Wilson left much to the imagi-
nation. Secretary McAdoo in some Of his
speeches in the West had whitfield down
the grandiose scheme which failed in the
last Congress TO the mere construction or
purchase of merchant ships to serve pri-
marily as naval auxiliaTies. The Presi-
dent, however, ignored this happy after
thought, and went back, apparently, 20 the
main lines Of last years plan. Proposals
will be made" he said ito the present
Congress for the purchase or construction
of ships 20 be owned and directed by the
government similar TO those made to the
last Congress, but modified in some essen
tial particulars"
Though admitting the necessity Of
masking to some extent its purpose TO
force the government into the shipping
business in competition with private own
ers, the administration still clings to the
delusion that the present shortage in ton
mage must be remedied by putting $780,
100000 of Treasury funds at the disposal
of our idle ship yards. 1t is Carelessly
assumed that private capital is not keep
ing our shipbuilding establishments occu-
pied to the limit of capacity. If it was not
doing so and was not equal 10 doing so
there would be some ground for arguing
that the government ought to supplement
private orders with its own orders.
That such is not the case all current
evidence shows. According to the report
of the Commissioner of Navigation, just
published, our merchant marine is larger
now than it has ever been-larger than it
was in the palmy days when we were one
Of the leading maritime nations Of the
world. There was a net gain Of 10000
tons between July and December / of
this year. There are now ninety-eight
vessels Of more than 5000 tons under con-
etruction or under contract, and the total
tonnage under construction is 1851.
Our shipyards never had so much work
on hand as they have today. The reason
is obvious. Freight rates were probably
never higher or ocean carriage more
profitable. So long as the war lasts such
conditions will continue Private capital
is willing to risk poor earnings after the
war for the sake of the tempting earnings
in sight.
II is hard to see. therefore how the gov
eminent can bring about a material in
crease in tonnage for emergency use by
itself entering the field as an owner and
carrier. Its orders for ships would go on
the waiting list, displacing there the or
ders of private operators. When the gov
elnment's contracts were filled, we should
not have any more tonnage available than
would have been turned out under ordi-
nary economic pressure. The govern
ment's decision TO enter this field would In
itself alarm shipowners and shipbuilders
and would check the remarkable rejuve-
nescence which the American merchant
marine Is now undergoing.
The shipowners and shipbuilders car
safely be left to their own devices while
the war lasts. When it is over some gov
eminent assistance Will be needed to hold
the great gains made by our carrying
trade. Sharp foreign competition will
then be encountered again, and it will be
prudent to sustain our ocean-going ship
ping in the manner in which most Of the
great maritime nations have built up their
merchant marines. Fostering legislation
subventions, subsidies-these are the nat
ural stimulants TO maritime growth. Their
cost, too, would be far less than that OF
any wild venture in state ownership, max
ing the government the devouring rival OF
private interests which it is conspicuously
to its advantage to utilize and sustain.