The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-09-14
SHIP YARDS ACTIVE
BUT Marine GROWTH
CONTINUES SMALL
Companies Unfortunate For They
Cannot Increase Fleets At
Present Costs of Materials y.

u '"oSo u"H0 We are hehrlhg great
deal about the marvellous growth of
the American merchant marine, but
when we come to analyze the results
Of all the feverish activity in our ship.
yards we find that this growth has
been surprisingly smallS says the july
number Of the Pacific Marine Review.
Despite all of our shipbuilding and
despite the fact that the world q ehiel
sea carrier is greatly hampered through
German submarine activity aud the
Wholesale communicating of vessels for
government use, the United States has
only succeeded in lettering it's share "
the carriage on American exports anl
imports by about Ave per cent. q
Reasons For Slow Growth ,J..4
The reason for the slow growth OF
the American foreign trade merchaas
marine lies in the fact that wefate ex.
pending u great deal Of our ship build.
ing energy towards building up the
merchant fleets Of other nations. A
goodly proportion of the tspDnge now
under way in United States shipyards
is for foreign owners. This percentage
is not alarmingly high when viewed q,
= ratio Of the total tonnage under con
struction, ,but If we eliminate oil tank
ars and domestic craft and. consider
only the foreign trade cargo shin. thet,
We find that the additions building and
projected for nse in our foreign trade
under the Stars and Stripes are i'm,
measurably less than they ought 70 be
There is a grave danger in this situn.
ton, not only to the prosperity AMI
growth of the American merchant ma.
rine. but also to the shipbuilder, since
the history of all shipbuilding nations
has shown that no people can becom,
great shipbuilders without also being
great shipowners. We cannot 90 on
indefinitely building ships for other,
unless we continue to build >them foi
ourselves. .@-, I
Costs Much Higher ... I'd =.
The cost of new tonnage, measured
by pre.war standards, has risen to !
remarkable, figure. AT frst glance. thu
laymaR would be apt TO come to tn.
conclusion that the shipbuilder is max.
ing enormous profit. There is another
side to this question, however. The
builder is contracting for work to be
completed far in the future. The yard,
are crowded and in, the United State,
today it is hardly possible TO. secure
delivery under from twenty.four Ia
thirty months. All contracts are made
in the face of rising market. shape.
and plates have risen In price by leaps
and bounds. all the other materials an
outfit entering into the makeuf of q
modern steamer have risen proportion
ately and furthermore all work is rush.
ed with the consequent high labor costs
which such working conditions make
unavoidable. Against all these causes
which increase. production cost the
shipbuilder has but one weapon and
that is the resource to a standardized
ship. Most Of the American yards are
turning out but one or two types OF
shin. A yard will build q certain sized
hull: the owner having the option of
hitting the bulkheads and deciding
npon type Of drive. Under present
working conditions. however. the eron.
Hmies offered. nv building standard
'imensioned hull are more than offse.
by the conditions under which the
work must be performed and the un.
"ertaiDty of material deliveries, TO say
0othing. Of the vast increases in the
"ricP Of all materials. Ill.,.
7castwise Companies Unfortunate
The position Of our coastwise steam
hip companies is also unfortunate.
These concerns operate under close gov.
'rnmental supervision as to passenger
md freight rates, and the limitations
fixed under this supervision are found.
ed upon the cost of tonnage production
prior to the time that the ship-building
boom struck this country. Such com.
"anies cannot see their way clear to
make added additions to their fleet
lnder the present cost Of building new
tonnage. ..-.. .. -.,S,,sr. ia. Erft II
With foreign owners, steadily plac.
ng orders in American ship yards. II is
'rrarcut that steel prices will bei as
high, if not higher, at the close Of 1918
han they are today, As long as abiior-
NAL freight rates remain in force il is
"pident that the American fship lean
continue proftably in the foreign trade
icFpitc her high initial cost, but il
his ship is tOaremain under the Amer.
lean flag through the gradual decline
n fretghts which must come and on
INTO the period Of international rivalry
Of sea trade which is Inevitable, tber
owners must utilize a goodly portion of
her war profits" in writing down
her book value TO figure commensur.
atc with her declining ability to pro.
luce large profits, This is preciselythe
curse being followed by practically
very foreign shipowner in order that
his ships may be ready TO 10 70 sea on
\ competitive basis when normal times
have returned, and il is this careful
1olicy upon tho part of our future com.
'etitors which makes it imperative
hot America should venture on the
lCep sea today despite the high cost
Vt shipping. ~. o.. =
Jan Cost be Lowered? .r.fF ...,,
Is there any way in which the cost
Vt tonnage. building or 10 be built for
american owners can be loweredf This
< Il Question Of vital Importance to our
'ation.' II tho shipbuilder is making A
rood profit today no one who has fol.
owed the financial history Of this in.
'nstrv during tho past twenty wears
will begTudge him a fat year or two
after so many lean ones. In any ease,
his ability to stem the rising tide OF
shipbuilding costs is ,yery meaoarit IL