Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-12-09
Government lnaction is Said to
Be Best Food on Which to
Raise Great Business
ey CECIL p. STEWART.


Immediately prior 10 the war severe
depression existed in shipping.
Freights and values q tonnage were
at low ebb and the outloos, particu-
Iarly for American shipowness, was
eicDIly. The outbreak Oi the war in
creased the depresE!on. and for the
first north or two but few people in
tho shipping business couId see ray
81 hope.
Ships sold cheaper during the first
month CT the war than they had be-
fore il, and il was not until after the
battle OF the Marne that those who had
predicted speedy victory for Germany
began to realize that Kitchenefis ea-
innate 0f the length CT the struggle
was probably correct and that the AL
lice, having been caught largely UNI
prepared. would be compelled TO de-
pend upon the United States to a
large extent for munitions and, sup
plies and would thus heavily increase
the demand for ships
Unbelievable Good Fortune
Even then it was not fully realized
that the extensive requisition OF for
eign ships by the allied governments
would enormously increase the value
Of neutral vessels. Freights and tom
mage values rose steadily from Sep
TENDER, 1914, until the spring of 1915,
but during the fall Of 1914 il was the
spectators who made the large prof
its. The shipping people simply could
not bring themselves to believe that
nearly everything they had learned in
their business lifetime had no bear
ing upon the existing situation After
having been through many periods Of
depression and infiation- such as took
place during, the South African war
they naturally thought that an Ameri-
can ship which had cost them $50 a
ton, and upon which value they had
had difficulty in earning fair return,
was very dear at $50 to 800 a ton
During 1915 pumber of shipowners
disposed of their tonnage at substan-
tial profits. expecting to reinvest the
proceeds either in existing tonnage
when prices went down or in new ton
toned to pay for it. Apparently few
people foresaw that the foreign de-
mand for steel was. going to take up
nearly the entire capacity of the steel
companies, and the fact that there
were few steel companies equipped to
turn out plates, and particularly
shapes for shipbuilding, would make
the material alone cost as much as
the completed fabric did before the
war
There were about half dozen ship
building plants ON the Atlantic coast.
two or three on the Pacific, and few
on the Great lakes capable of bufld.'
ing merchant ships for ocean trade.
These companies we're soon filled up
with orders, and, in turn, took the
capacity of the steel companies for
1915 and 1916 delivery.
The Norwegian Passion
Merchant shipbuilding in the United
Kingdom, which, prior to the war had
supplied most of the world, practically
ceased. Only the Norwegians, who
suddenly developed passion for in
svesting in shipping, seemed to be
whole-hearted believers in the future
of shipowning. They placed as many
orders as they could in American ship
yards, particularly on the Great Lakes
and Pacific Coast Many of the Nor
wegians were, no doubt, spectators.
but some of them made enormous
profits in reselling their contracts to
American, British and French buyers
and are stiIl placing orders for more
During the middle of 1915 the Allied
governments began to realize that I'M
less they took action the tremendous
rise in freights would put up the
prices OF supplies to be paid for. by
their own people to prohibitiVe level.
They began to fix maximum freight
tariffs for British and Allied ships.
This action succeeded In part, but
still left large profits for neutral ton
mage not subject to requisition and
control. Neutral tonnage was dug up
from the boneyards. Even yachts
were converted into cargo carriers.
and sailing vessels of all sorts were
purchased at twice what they had cost
to build many years ago..
The revival of the sailing vessel has
been almost unbelievable. Practically
no new sailing vessels have been
built, but crude oil motors have been
put into sailing vessels of all sorts,
and even little 100-ton fishing schoon-
ers have been chartered for trans
atlantic cargo trade. Ancient sailing
vessels, which had been cut down into
barges, have been rerlgged and sent
out
Caution
In one way and another most CT the
demand for cargo space was met, and,
of course, by the middle of 1915 the
thoughts CT American shipping men
lad turned TO the necessity of build
ing new shipyards. Existing yards in !
creased the number of their building
SLIPS, but, naturally, they were limit
ed in the amount of additional procur- !
able space. AS the larger American !
yards ha1 depended for many years
Oh government work, they. as matter !
Of course, thought it necessary to so |
g rn,.,-l,- i, opeppt;,lV now orders until !