New-York tribune., 1919-01-25
Chaos In the Shipping Policy

Recent developments in the govern
ment's shipping programme are bewil-
dering enough. Last week Chairman
Hurley Of the Shipping Board made the
staggering proposal to write off a billion
dollars or more on the cost of ships
now under construction by the govern
ment, in order, supposedly, that our
ships might compete with the merchant
marines of other nations. Now comes
Director General Piez of the Emer-
gency Fleet Corporation calmly testify
ing that he had received an offer from
foreign government for twenty-five of
the first fifty 7,5OO-ton ships now under
construction at Hog Island. A number
of these vessels have already been
launched and still larger number are
ready to be loosed from the ways. This
offer was transmitted to the Fleet Cor
poration ten days ago through the
American International Association,
which is the governments agent in the
Hog Island construction. Our CORE
spondent, Mr.. knappen, says that this
offer was at once cabled to Chairman
Hurley in Europe, but no reply has
come. Meanwhile "there is the greatest
suspense on the part of the Emergency
Fleet Corporation and of the American
international Association lest a golden
opportunity may be lost to realize top
prices on the product of a yard whose
tonnage cost has been severely criticised
by Senators and others"
1t is stated that the offer covered de-
probation and interest on the money in
vested, which means that the price to be
paid would be about S225 a ton, or
about SAP 100000 for the twenty-five
vessels. There is here mystery. If
foreign nation can afford to pay 1926
per ton for these ships, why cannot the
United States? Is there any country on
earth With a larger need for SHIPPING at
the present time than the United
States? And if foreign nation can
afford to pay this price, why should it
be needful to write off Approximately
hundred dollars per ton on the cost of
ten million dead weight tons of ships?
Is this on the basis of present shipping
rates, or any rates likely to prevail in
the near future? Or is it with the idea
that rates in 1920 are going to be back
to the levels of 1914?
1t is well known that the cost of ship
building has risen enormously everv-
where. 1t is we'll known that Norwegian
interests and others have been in this
country endeavoring to obtain ships at
figures that would have seemed very
high before the war. 1t is calculated
that in Britain the cost of construction
has more than doubled The United
States is not an isolated nation, nor are
conditions of ship construction here pc
culiar to this country.
The fact appears to be that in the
shipping problem, as in the railroad
problem, the Administration has vet to
evolve policy or plan of action. 1t.
has apparently not made up it's mind
whether ships shall be operated bv the
government or leased for individual op-
Grafton or sold to the highest bidders if
a favorable price can be obtained. IF
other countries are ready to buy our
ships at cost, perhaps it is after all un-
necessary to write off a billion dollars
and charge it to the taxpayer. Whv
not invite offers for the ships and find
out from other nations what thew are
worth? We do not seem to know.