Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1917-09-29
U. S. TO TAKE SHIPS
ABOVE $500 TONS
Schedule Reduces Ocean Rates By
Is To 20 Per Cent.
TARIFFS BASED ON TONNAGE
Shippers Have Paid as High as 500 a
Ton During The War Govern
ment Will Assume War
Risks on Craft.

by the United States Shipping Board
of the rates it will pay to ship owners
for their requisitioned vessels These
rates have been the subject of many
conferences between the board and
Representatives of the shipping inter
ests and ii is understood that they
are distinctly lower than the rates
proposed in the first instance by the
ship owners.
Every American merchant vessel
of more than $500 tons lightweight
capacity available for ocen service
will be requisitioned by the Govern
ment October 10 American ships
available for ocean traffic total slight
ly more than 100000 tons, but some
of them already have been taken over
for the army and navy In most in
stances the ships will be turned back
to their owners for operation on Gov
eminent account, subject to DISPOSE
ton by the Shipping Board
Exorbitant Prices Paid.
Cargo carriers and tank steamers
are to be taken over on the basis of
their carrying capacity measured in
dead weight tons. Passenger steam
ers are classified according to speed
and passenger-carrying capacity.
With the ravages of the submarine
and the withdrawal by the Allies of
large proportion of their mercantile
shipping for war service, there has
resulted a valuation for ocean ton
mage which is without parallel
Transactions have been reported in
which the prices paid for old vessels,
which under normal conditions it
would be hardly possible to operate
probably, have been double the price
at which the Government is contract
ing for new tonnage. This has been
possible by the extraordinary adj
vance in sea freight rates. The
transatlantic rates have scared as
high as 500 to 500 ton, and some
higher freights have been reported
The rates announced recently are
not schedule of ocean freight rates,
but are a schedule of rates of COM
pensation TO ship owners for their
vessels.
1t is expected that the United
States, having thus placed itself in
the same relation to its ship owners
as England and other belligerent ma
tons, will now be in a position to
take up the question of concerted ac-
ton among the nations looking to
worldwide reduction of ocean rates
In the schedule vessels are divided
into three classes-cargo boats and
tankers and ClassA and Glass B
passenger-freight vessels. The rates
on cargo boats and tankers are based
on their lightweight tonnage. The
passenger-freight boat rates are
based on their speed and vary in
Glass A-with passenger capacity ex-
ceeding 150-from 80 on vessels of
ten and eleven knots to s11.50 on
vessels over fifteen knots. For Glass
B vessels of from rs to $50 passen-
ger capacity the rates vary from IS
for boats of ten and eleven knots to
$1,000 for vessels over fifteen knots.
Schedule vi Rates.
1t is estimated the schedule will
decrease present freight rates from
Is to 20 per cent on various commo-
dities The rates per ton per month,
figured on a Government form time
charter and on basis of lightweight
tonnage, follow;
More than 1000 tons. $575 per ton;
sol to 10000 tons capacity, Sc; 6,001
to 5000 tons, 1925; 4,O01 to 5000 tons,
$3.50: 3.OO1 to 1000 tons, s675; $500
to 5000 tons, 81.
Vessels of speed in excess of eleven
knots to be allowed cents per ton
lightweight per month for each knot
or part of knot over eleven knots.
Passenger vessels, Glass A--Ten to
eleven knots, 50 per ton. Glass B-SS
per ton gross register
cambridge Colby of the Shipping
Board, in announcing the requisition
rates. said:
"A certain number of the requisi-
toned vessels, which are required for
the continuing and exclusive serv-
ice of the navy and army, will be
taken over on a bare ship basis.
The rate OF hire on this basis has
been fixed by the Board at $415 per
dead weight ton for cargo boats. and
$5.75 per ton gross for passenger
steamers of eleven knots speed, with
an additional allowance of so cents
per ton for each knot in excess of
eleven, and up to sixteen knots
"All the foregoing rates are ten
tative. The Board will carefully ex-
anime the results of operation under
the requisition rates and from the re-
suits. as certified by expert examin-
ers. will determine upon such revi-
sions as fair and equitable treatment
of the owners Of the requisitioned yes
sells may require. Revisions will be
made if reasons therefor are found to
exist at intervals of not more than
ninety days.
As to insurance, the Government
will assume the war risk, and in some
instances the marine risk as we'll In
cases in which for any reason it is