The sun., 1919-06-27
Fletcher Urges Continued Use
Of Yards and Taking OPP
ton on Hog Island.
FoREsEEs GOOD PROFIT
Senator Analyses Problems OF
Congress in Maintaining
T Nations New Position.

the opportunity urisos anu peii'a"e
IN. Government gradually 70 retire from
N. shipeuildins and shipping business
"a, voiced In the Senate to-day by
sustor Fletcher (Fla).
.rhe Shipping Board and the Director
NJ Operations recommend that the Gov
,rnuent discontinue construction Of
sh,ps as soon as existing contracts are
o.rformed," said Senator Fletcher: that
N. Government sell its ships and that
sse Government retire from the operat-
tsr business" Then the Senator out
lined as follows tho questions which
must be settled by Congress in fixing q
policy
Il. The Government shall cease the
suilding Of ships when those under con-
tract are completed. II so. what is to
b.come Of the Hog Island plant, which
cost about s66,o00.ooo as 1t stands, the
ysrd at Bristol. Pa. and rights under
the option respecting the Submarine
Boat yard at Newark and interests in
ether yards?
-. Shall the Government sell of all
Us ships built and acquired. and II 50,
upon what terms and conditions?
80. Shall the Government cease opera
ton OF its ships entirely and abandon
all organisation and plans heretofore
undertaken In that connection?
Problem TO Maintain Position.
Y think unquestionably we are TAX
tng our place on the sea. The problem
now is what we shall do to maintain
that position and increase Ut.
-on the frst question as to policy
regarding construction, I do not favor
the abandonment Of all construction by
the Government and scrapping the yards
IN which such large sums of money
have been invested. / think the Gov
eminent might gradually work out of
construction, but in the meantime get
the benefit of the plants and facilities
already created and build such ships for
such purposes as the country needs.
For instance, we have the option
Of acquiring fee simple title to the Hog
Island property on which we have ex-
pended about s66, 900, 900 for $1,740,000
and we can exercise that option at any
time. II embraces e27 acres OF land.
with about a mile frontage on the Della
ware River, including riparian rights.
piers, fifty shipways, warehouses. rail-
ways water. sewer and lighting systems,
buildings and improvements OF every
nature.
srty is worth practically what 1t cost.
but at auction 1t would not bring one
tenth its real value. 1t Is too large for
any private concern to operate as a
shipyard. 1t might be divided into sew
eral yardA. Just to close 1t down and
attempt to sell 1t would call for enor-
nous sacrifice. We could lease por-
ton OF it and operate the other, con-
tnuing to build steel ships as demands
OF our foreign trade require.
The yard at Bristol, on which we
spent sl4,554,s34, We might not con-
tnue.
The yard at Newark Bay. on which
We have spent $17,ses.sSo and on which
We have lease with an option to buy,
should yield US something. but what
ever We do as to the agency yards at
Bristol and Newark We should unques-
tonably exercise our option and acquire
title TO the yard at Hog Island. My
Judgment is We ought to continue to
build ships there"
Selling ships because they could be
sold at or a little above cost when they
might pay for themselves in a few
months was a mistake, Mr.. Fletcher con-
tended. There is a real shortage of
ships" he said. land there will be per-
hsps for years. Freight rates will con-
tinue high. The Government ships can
serve our commerce on advantageous
L p6-
leve that should be done rather than
sell the ships.
We are now threatened with q policy
which will place US where We were in
1914. It Is that we are to cancel con-
tracts right and left We are to sell our
ships. We arc to rely on the patriotism
ara vision and enterprise of private in
ana use the ships which the Government
has built"
Senator Fletcher said the cost OF pro-
ducing ships had been about $2l0 a ton
and would be even less with the taxes
on the shipyards deducted.
Senator King Disagrees.
Senator King (Utah) disagreed with
Senator Fletcher. saying his calculations
would place shipbuiding costs close to
$500 ton.
Senator Fletcher gave this resume OF
Tie situation
Delays in getting production started
were caused by slow preparation of de-
Signs and continuous changes. some OF
hem after contracts had been let: by
controversies as to whether steel. wood
or concrete ships should be built: Diff
cu!tes in getting labor; troubles in ad-
JCsting contracts and taking over pri,
Vately contracted ships in process OF
building; providing housing and trans
portaton for workers; getting fuel and
engaging competent officials.
=. To-day four steel ships were being de-
uVered daily. Hog Island was turning
over three 1900 ton ships every two
weeks That yard had launched thirty
Tour and delivered twenty-five vessels
since tho arfnistice the Shipping Board
mac cancelled contracts calling for 1897
Voo dead weight tons, 100000 in stee
ehd the remainder wood. The keels
were not laid for about $500. 900 tons OF
the cancellations. Completion OF exist
ing contracts would bring completed
shlps to about 100000 tons. The
shipping Board was now operating s65
ships' OF 5,467,l05 tons. The total ton
mage now owned and operated by the
government was 6,544,S32.
Merchant ships operated by the Gov
eminent were: American owned. taken
over for the war, 1.272.51s dead
Weight tons foreign, chartered. ss1,736
Dutch. requisitioned, 461,731; captured
herman. 6l0,l12; captured. Austrian
ro'foS ships built by the Emergency
rect Corporation since the outbreak OF
me war, S,543.3S5 tons
lhese figures did not include the ship.
engaged In coastwise commerce or com
merce on the great lakes.
think arrangements have beer
ABOUT completed for the return OF the
Dutch ships to Holland" said Senator
r1etcher. They will go back to theil
o"her6 under a plan now practically
sNeed upon. Many American ships taker
uIrlnS the war were bought and paid