Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-12-09
SHIPPING WILL BECOME GREAT
INDUSTRY IF It BE LET ALONE

output OF new tonnage has been dou-
. bled. The purchasers OF the old yards
approached their enterprises with mis-
esirgs, knowing that the history OF
shipsUilding IN the United States fer
great many years rad. been disc e.
trons to many shipbuiide7s ard that
! the war alone had created tie demand
lfcr American tonnage.
/ they did not know how long the
/ war would last. and theY knew that
when the war was over aeo-t 80 per
cent OF the British mercantile marine
and the informed or detained German
and Austrian vessels would be again
ava llalla. and they did nCt know whe-
Their trade depression OF 4 trade re-
Yiyal would follow the establishment
OF peace. They felt themselves 10 be
in much the came position as the
, munitions manufacturers who had put
, up new plants u meet q current de.
| nland and who believed that they
would have TO make enough oft OF
tie contracts offered 10 enable them
to serap the plants immediately after
peace came OF course they faced a
| large rise in wages due 10 the demand
fer munition workers. They also knew
that there were only a limited num-
bert Of skilled ship workers in the
United States, and that they would
be compelled to bid higher in order
TO get their men from established
yards and the munitions factories
Is This might seem to be discouraging
enough, but at the same time the adj
ministration insisted upon trying to
force an ill-coneeived government own
ership plan upon the country which
caused American shipowners to hesi-
tate in placing orders at the high
prices it was necessary for the yards
to obtain
Most of the new yards therefore had
to depend largely upon foreign orders.
They would have preferred to limit
themselves to American orders, but
the administration had blocked the
American market and the manage
ments OF the new yards felt that I'M
less they were to be classed as gam
blers On the duration of the war they
could not afford to lay down ships for
builders account, to be completed and
operated until such time as shipowners
had recovered from their fright at the
spectre of government competition.
Now that the amended shipping bill
has passed with some of its worst fea-
lures eliminated, neither. American
shipbuIlders nor owners can under
stand what the administration can pos
sibly do with its appropriation OF $780,
100000 to relieve a situation which has
largely adjusted itself already.
What May Come :,
A prominent American shipping man
who was for several years president
of one of the largest American ship
building companies. told. the writer re-
Gently that he conid sseeany end
to the war for \ number OF years, and
that he believed the shortage of steel
and the Increasing loss of tonnage
would put prices far above those of
the past six months. On the other
hand, tie bulk of conservative ship
ping opinion is to the effect that we
have seen nearly, if not quite, the
highest point and that II months or
more from now there may be drop
in freights AMI tonnage which would
ruin spectators. In view of the limi-
tation OF the government operation of
ships for five years, is this business
in which the government can safely
Venture, and Is not its interference
likely tc land the taxpayer of the
country with heavy loss? In other
words, is it justifiable for the govern
ment To speculate in the shipping BUSH
ness for a few years with the people s
money and to the detriment of nri-
vate capital?
The future of the shipbuilding bust
ness in this country will be bright il
it is permitted to dsYelop in its own
way 1t is probable that for many
years The cost Of labor and material in
the United KINGDOM and Germany will
be quite as high as in the United
States, and thu start which American
yards have obtained, thanks to the
war and in spite of il;-conceived gov
ernme1t interference, will enable them
to compete successfully with foreign
yards.
The Profits which enc of the revived
yards will likely make on present con-
tracts will pay for the yard, its i'm
provements, aud a substantial diyi-
dend. Others may fare as well. If
existing restrictive shipping laws, in
GLIDING the socalledi La Toilette law,
are repealed or properly amended,
there is no reason why shipbuilding in
the United States should not become
one of its greatest and most profitable
industries.
$4,000 DAMAGE
nv ElRE AT RESORT