New-York tribune., 1919-01-17
Hurley Has Plan to
Cut Shipping g Values
To Aid Conn petition
Chairman Would Write OFF
,000,0 900, 900 of War
Cost to Help u. S. Boats
Get Share of Business

PARIS, Jan. 16 (By The Associ-
ated Press). - American shipping will
be enabled to make rates in successful
competition with other maritime ma
tions and keep the seas open to the
great business development expected
with the end of the war under the pro-
visions of shipping policy adopted
by the United States government, it
was learned here to-day.
Formulated by E. N. Hurley, chair
man Of the United States Shipping
Board, after an extensive investiga-
ton, this policy, which has been off,
cially approved, purposes to write off
virtually $1,000, 100000 from the cost
of American shipping built during the
war, and possibly a proportionate
amount from the valuations of Amer
lean shipyards. This wrte-off, accord
ing to the plan would apply to ships
worth approximately $3,000,000, ,0O0
Hurley Outlines Policy
Following is an official outline of
the new policy which is considered of
great Importance to American business
and OF vital influence in obtaining for
America her part of the worlds ocean
trade:
"lnasmuch as one Of the very i'm
portant factors in ship operating costs
is that part of the overhead cost rep
resented by interest and depreciation
1t is recognized that readjustment of
ship values should be made. 1t is also
hot II
tlce and proper accounting methods re-
qulre reduction in values at which
ships already built and now building
under war conditions are carried. 1t is
estimated from the figures so far OBJ
tanned that the proposed write-o off of
from 80 to 40 per cent would be the
minimum amount properly chargeable
to the cost of the war.
The operating cost of the United
States government owned ships is nee
essarily high because of the high COP
struction, cost due to the war. TIE
question Of future rates, therefore
makes necessary readjustment Of the
values at which American shipping is
carried The proposed reduction should
put American shipping on an adequate
postwar footing, both as to values and
cost of operation. Similar methods, il
seems, might we'll be applied to re.
duction in shipyard values.
Could Fix Lower Rates
THE proposed new valuation of ships
would put the United States, in so fan
as the present government owned ships
purchased or built during the war are
concerned, in a position to name rates
IN competition with such rates as ma,
be offered by ships of other nations
and 1T Is the intention of the United
States government that its people shall
lave ocean rates at least AS low as
those offered by foreign shipping.
referring to the question whethe,
operating costs of commercial vessels
privately owned and those not at pres.
ent government owned are seriously af.
fected in an adverse way by the wages
paid, 1t is now known that S5 per cent
OF the ocean going tonnage Of the world
to-day is operated within from 5 to IF
per cent Of that now being paid hv
American private operators, and at the
present owned and controlled ships of
the United States government. The dif-
terence in wages should not be vital
to the question Of rates, as such DIFF.
terence could not be a controllino
factor, in the cost Of operations Of
United States shipping