Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-12-31
OBSERVATION-DISCLOSURES
IO0VERTURNCOAsTF Policies

bonuses. lost OF bunker fuel and
supple hvanced. The hazard
Gus nature The enterprise perhaps
, justifies what higher returns
/ than usna the capital inEested
, The cost risk insurance on the
} ship Is Ind in the freight rate.
, Yet all t4factors do not justify
:. the progte MULTIPLICATION of
charter rshor the hitherto inco1-
eeiyab.e rs TO which freight
charges advanced.
THE m value OF a ship bears
a close reb TO Its earning power,
hence thebe Of ships, also. Mss
steadily Med; until ships which
before thf would have solo at
from $50 { have recently changed
i hands at $pr over, per d. w. ton.
After a 3ul Investigation of costs
and ralueid after full conference
with reprtative shipowners. the
board deteed that. the inflated war
rates, arishs they did from abnor-
NAL .eon1ft due to the submarine,
and To thkersicn of, tonnage for
military uses, did not represent
fair and ldnate values Of the kind
that are pusiye in determining
lust compton. The board there
fore fixed entatiye scale of requi-
sttion, ratetbstantially higher than
the preWRFis. which took full &C.
count OF 1ased costs and legit.
mate incre in ship values, but
which new eiess was substantially
under theIust market rates then
prevalent. rates so fixed became
effective ace for all vessels requi-
sitioned bic board for military
service. -. ; T.. :
ITO sinput certain vessels and
to limit thfarnings to a reasonable
level, and the same time to Ieave
others opdng in free trades al
ratesf forcto even more fantastic
heights bye requisitioning Of com.
peting tone, would have produced
9 mani.eskcrimination. Moreover.
In q war which the mobilization
OF econombsources Is second lii i'm.
portance d to the service oil, armies
In the fie the distinction between
war serviand commercial service
scarcely els. All commercial ship
ping conntd with vital American In.
dustries iAgaged in war work.
The BID has therefore recently
adopted alley OF requisitIoning for
eovernme1ccount all power-driyen
steel eargessels Of $500 tons dead
weight or pr, and all passenger yes
sells OF q tons gross register or
ever. ada1 TO ocean service. The
operation these vesshls is entrust.
ed in largiart to the companies by.
whom they're formerly controlled
but all rdpts have been for~fov-
eminent q unit. the owners being
credited v the requisitioA rate
fixed by board. The vessels,
le under fun control of
the board to voyages, cargoes, and
rates and to safeguards for their
protection lainst the hazards Of war
Tone servi 1t is hoped that this
policy illh the means Of achieving
'wo resultlwhich IN the opinion of
he board e necessary: First, com.
'lete unitpf control over the dis
ribution dshipBing, so that-war
leeds mayie filled In the order OF
heir emerhcy;; and second, Just and
Effective rhlatidn of rates; so that
he nationst wal with Germany may
lot be fin8iallyI exhausted by extor.
ionate Evaporation charges.
further Experience may develop
hat, consistent With the purposes
Dove Quilted, sdme Of the steamers
lot adapteto wir service may prof.
tably be reasedlfrom requisition. AS
o other lin, moe effective methods
{ regulate and control may prove
Q be necehry. II should be borne
4 mind tit ASIDE from the reaui-
ition powethe loard at present has
o iurisdiebn oier rates in foreign
rade and b jurisdiction over inter.
tate rates, excef where vessels are
ommon callers operating on regular
outes. II Experience shall prove it
} be Necessary, lie board viii recon.
lend drasti legilation to meet more
ffectiyely be situation arising from
le acute derth f tonnage.
"The freiIbk 4tes to be charged
shippers IonA bquisitioned vessels
II in conanercis service or assigned
foreign governments have been
i subject cf dreful consideration.
he board. 81 cotise, has no desire to
'ofiteer at the Expense of any gov.
nment asspciatj with the United
.ates in the w against Germany,
or the general hblic. On the other
ind existing cdtraets. particularly
ose on . {. /. basis. and special
arket condition. otter present a
niger that q reuction In rate will.
It inure to the benefit OF the con-
mer but will ISrely transfer from
e shipowners d favored shippers
9 MONOPOLY earrings which II is in
nded to eliminke. The policy of
9 board therefor win be to charge
eight rates base on the requisition
To whenever itlcan receive assur@
&c that the bdefft OF these low.
ties will accruel 10 the American or,
led government or to the consum.|
public; and 10 charge higher
les whenever tbs fact shall not be
established he application OF
Is policy will nj doubt present diff
ulties in individual cases but It is.
lieved In princile to be sound.
The requisitioi program rs vet
8 been in effect for such q short
riod OF time thd no accurate state