New Britain herald., 1916-05-23
NEW BRITAIN DAILY HERALD TUESDAY, MAY 23 1916,
SHIPPING BILL HIT;
 CALLED INADEQUATE
Trade Council Says Over S62O,-
 100000 Would Be Needed

Correspondence of the Asso. Press.)
 Washington, May 1S.-In finding inadequate the present administration shipping bill for the creation of an effective merchant marine, the Nation al Foreign Trade Council in a report submitted yesterday to congress de- clared that the proposed 50,000,000 bond issue for a fleet of ships to make this country's trade independent of foreign shipping would be far too small and that from $520,OO0,O00 to S1,O4O,0OO, 900 would be nearer the mark.
 The report further held that until a definite federal shipping policy was adopted much like that in force in England, investors would be disin- clined to embark in such venture. The main proposal advanced by the council advocates the creation of a partisan shipping board com- prised of men experienced in shipping and foreign trade and unclaimed to any policy seeking government owner
 
 regulation of ocean freight rates
 The council says it's report is based on a thorough investigation of existing conditions directed by the councils merchant marine committee com prised of James A. Farrell, president of the U. S. Steel corporation; Rob- ert Dollar, export merchant and ship owner of San Francisco, and P. A. s. Franklin, vice president of the Inter- national Mercantile Marine company Three Chief Objects.
 The three chief objects of a truly national shipping policy, says the re- port, should permit and encourage the development of a merchant fleet discharging the following functions: first, to increase the national in come and domestic prosperity through greater facilities for the sale abroad of products of the soil and industry of the United States, through the impor- tatiOn of materials indispensable to life and industry and through the freights collected from world com- merce; second, to maintain under the flag, communication with distant possessions; and third, to aid the na- tional defense and maintain commerce during the war whether the United States be belligerent or neutral.'
 After an analysis of the amount and character of tonnage necessary to serve American foreign commerce be- fore the European war, the council in it's report reaches the conclusion that with the $50,O0O,OOO derived from the proposed bond issue not more than 6OO,00O gross tons of shipping can be provided at existing prices or less than one-tenth of the minimum amount necessary to establish the United States in the position sought Nothing like 600,000 gross tons is available from the few nations which. during the war; permit alienation of their merchantmen vessels. American shipyards will not guarantee deliver ies of new construction within two years. Rear Admiral Benson has tes- tified that the utmost the navyyards can guarantee if assured prompt de- liveries of materials is six 1000 ton ships in two years.'
 On the assumption that the car- riage of 60 per cent. of American sels render this country independent, and in view of the fact that in 1915 1,871,543 tons of American shipping carried 14.3 per cent of the total foreign commerce. the committee es- inmates that between 6,0O0,OOO and 1O,00O,000 gross tons of shipping would be required. And at the pre- vailing rate of construction before the war of $50 a ton and of $1O0 a ton the present rate. it was found the final costs would be between s52o, 100000 and s1,o4O,o0O,oo0.
 Country Without Policy.
 ''In what situation,'' asks the re- port, 'does capital find itself when urged gradually to finance, at a cost of between one-half billion and billion dollars, the construction of 6,000,O00 to 10,0O0,OOO tons of steam ships? First of all, it finds this coun- try without a definite shipping policy Whereas in England all policy, gov ernmental and commercial has long leaned toward shipping, American policy has ignored it. The Seamen's Act is declared to "impose certain restrictions on American vessels which do not apply to certain other nations,' and the pending shipping bill is held to be "barren of en- coura cement for privately owned shipping.' The council adds: Tt is not yet apparent whether the 1 legislative mind desired to consider | shipping as an industry which, when ] properly developed, will render econ- omical service to American foreign trade, or as a service which should | be so regulated as barely to exist" The report finds that the Seam en's 1 Act assumed to preclude discrimina- | tiOn between American and foreign vessels, is only operative where those ships sail from Am erican ports, and points out that the great number of foreic cr1a shilas tollcLi,,cr