The Brunswick news., 1916-02-01
EQUALIZATION OF COST
OF BUILDING A VESSEL
is REMEDY. SUGGESTED
INTERESTING PAPER BY F. D. Nj.
STRACHAN READ BEFORE BIG
SHIPPING CONFERENCE HELD
IN NEW ORLEANS.

AT the national foreign trade con-
vention held in New Orleans on Fri
day and Saturday many interesting
addresses were made on the very inn
portant question of foreign shipping
f. ID. Nj. StrachaR, of this city, was
on the program for an address, but
illness prevented him from attending
and his address whs read before the
convention. 1t will be found very in
teresting, touching on live subject
and is as follows:
The burning question today is the
great scarcity of ships for the oversee
trade, not so much the scarcity of mail
or passenger vessels. but of merchant
freighter, and the question is asked,
her merchant marine for oversee
trade.
In order to consider this, it may be
we'll to briefly review the disabilities
and reasons why the American flag
has been non est on the high seas
for nearly half a century, as the rem
edy must of necessity lie in overcom-
ing the disabilities that have confront
ed it in the past, These disabilities
are:
First: The high initial cost of build
ing ships in American shipyarfs, ow-
ing to the higher scale of wages paid
American wage earners versus those
paid in foreign shipyards.
Second Higher operating costs,
due largely to the higher wages, bet
ter victualling, etc, on American ships
than on foreign ships.
Third. American navigation laws
are more unfavorahle to investors in
shipping than are foreign navigation
laws, and there are other collateral
features incident to these three pri-
mary reasons that will be dealt with
later on.
1t can be abundantly proven that
these three initial reasons, were in
themselves more than sufficient in
normal times of peace, to make oper-
alton of American built vessels in for
eign trades a physical impossibility,
as anyone attempting such operation
would have faced nothing but a heavy
deficit in competition with foreign YES
sells, hence there is small wonder that
investors were shy-and undoubtedly
will continue so-until such time as
the conditions are roemedied or equal
lied.
If the country wants an oversee
mercantile marine, let us consider
how these disabilities are to be rem
edied:
Shall it be by attempted reduction
of our wage scale both in shipbuilding,
and also in operating costs? The an
swer is no-therefore, nothing is left
but governmental equalization under
three headings:
First. Governmental equalization of
costs of a vessel built in American
shipyards by American labor, with
| the cost of vessel of the same type
in foreign yard, at the same period.
| Second A contract on the part of
the government with American ship
owners to equalize> their operating
costs over a period of yers versus for
eign operating costs.
The equalization Of both features
should be handled by a permanently
appointed government shipping board
or commission, composed partly OF
naval officers, but all of whom should
| be competent and experienced in ship
building, costs, types and speeifica
tions also in shipping operation foi
the purpose of adjusting and equaliz
ing with shipowners.
| Third. Amendment of American
navigation laws, whereby they will be
on a fair parity with the navigation
laws of foreign countries, with which
American built and owned ships mus
compete, as until these remedies are
afforded the American investor
whereby he can start out on "allfours'
with foreign competition, it is futile
to attempt the upbuilaing of tie Amer
lean merchant marine in the oversee
trade, but. ONCE given such a fair start
the American business man will de
the rest.
1t has been suggested that the ini
tial cost might be equaliz1d by givinl
American investors freedom to pur
chase their ships in the worlds
cheapest markets, granting such ships
American flag and registry, the gov
ernment thereafter equalizing operat
ing costs; but the wisdom of this plai
is extremely doubtful as it will un
questionably have the effect Of run
ming prices in foreign yards willis
American yards and workmen wer'
: left comparatively idle.
Therefore, it would seem the bette
policy to build the ships at home
thereby increasing the capacity am
efficiency of our shipyards and work
men under governmental aid, placin
these yards and the country at larg
in a far stronger position in case 0
emergencies, instead of weakenin
! her industries, as would be the cas-