The Washington times., 1915-01-19

10 un0er no circumstances dMtf1Outeu
ton. this has given the managing own
ers perpetual hold on the capital. once
invested with them. II they sell ship
whose registry has fallen to 'As10o.' or
Gs aaa ysis s lcr onse
into q new. and almost always q Larger
vessel. Thus, q 1.O00-ton vessel being
lost or sold. one of 1000 tons will re-
hoia rSs %nsn.%ss ns SCI interest
her. for the 2 per cent managerial
fee that he has been drawing plus his
dividends OF perhaps per cent, have
been sufficient to enable him to do
The original minority holders cannot
take their money out; the contract
keeps 1t In. Finally. some new minority
smaLes can "a be soid IN the Investment
sary to build the bigger new vessel.
Connected With All Business.
This brings up to the question once
more. why will the public invest
in these minority shares. which earn
so very little dividendT> The answer
requires . little explanation of how
completely the very life of Britain
depends on her shipping; of how all
banking. manufacturing. inland trans
portation. merchandising-every pos
sible interest of the country-is in
tertwined with the business Of ship
ping. All Britain understands this. as
American do not because they have
never needed to think about II.
"The British market that keeps the
United Kingdom rich and pow is
the overseas market. Nobody can lie
Independent Of shipping; everybody
has an interest to maintain rBitish
| ish freight rates cheap. Therefore
every business and financial interest.
| being thus interlocked with shipping.
| invests in shipping shares.
the point clear. A great manufacturer
in Belfast buys great quantities OF jute
from the East, and makes 1t into can
vas. The shipping concerns bring him
his raw. material. and bring IT at low
rates; they carry his product away to
all quarters Of the world for its mar
ket: they buy for their own use much
Part of British Tradition.
Therefore. when one OF these ship
ping concerns is about to sell some
minority shares in a new vessel it goes
| to this man and asks him to subscribe.
] He may not want the shares; he may
, know something else that, would pay
more. But he buys. buys because It fs
part OF British tradition, a fixed busi-
ness policy. an imperial interest, to
keep shipping alive and growing. He
knows that rBitish shipping makes the
market for his manufactures; that he
you'd be out Of business II 1t declined.
80 ne buys. and in the end he profits
by It.
That is the relationship between
shipping and business in Great Britain
There Is none such in this country No.
eody here quite realizes. surely the
American business community does not
realize. that the time is at hand wher
just such an interlocking. interlace &c
intimacy must be established between
our business and our shipping. or else
Of markets, for cheap freights abroad
1t would breathe a new life into tn,
whole country Of the industrial east
In that British condition could be trans
to send our wares abroad cheaper thar
Will Over be possible under our presen
laws. especially while the restriction OF
coasting trade are continued.
Open our coastin1 trade to all ship
and all flags Of the world. Let any yes
sci touch wherever It will on our coasts
take on or unload cargo. to or from
, anywhere on earth. That way onl,
will We get the cheap ocean freight
that mean equal chance for Americ,
IN the markets Of the world.
Would Take Long Time.
"Iit will take long time to build Vi
the close Internationally between bus!
, ness and shipping, that they have Il
Great Britain. Yet It can be done.
, has been done in some cases.
"Great American business corpora
tions like the United Fruit Company
the Standard Oil Company. the Grac
interests in South America. the Unite
) States Steel Company-these hay
l been able to build merchant fleets
{ but they have largely operated thei
= ships under foreign flags because
J, lwas cheaper. and they have alway
r been interlocking their commercia a
> with their shipping interests, maxim
Q one hand wash the other.
"Government-Owned shis would hay
] to compete with the ships OF othe
. countries. built and owned as I hav
r described. But IL the restriction O
coastwise shipping were removed,
1t were permitted to hire crews O
v foreigners and to handle them a
= other countries permit, then America.
r ships could do business. II, finally. a
] the President seems to have in min(
= these Government-owned ships wer
sold to private interests, they woul
presently develop this same close re
2 lationship OF business and shipping a
in England; and our country would b
; on the way to restoring its place as
= maritime power.
But 1t cannot be done ir we insis
Q on building ships in this country, q
8 operating them under the presen
o laws"