New-York tribune., 1919-01-21
Sale of Huge Marine Out
put Declared Impossible,
Even at Less Than Cost
Advise Leasing Of Routes
Vessels Can Be Made Com
mercialIy Profitable by,
End of Period, Is Belief
By THEODORE M. Knappen
Ncln York T1ihn1e


Washington Bureau
WASHINGTON, jan 20-The an
nouncement of Chairman Hurley in
Paris that the Shipping Board would
write off" abot one-third of the cost
OF the Emergency Marines ships in
order to place their fixed charges on
competitive basis with other shins.
reflects the conclusion thta all STU
dents on the subject of the future of
the national marine had arrived at in
principle.
In some quarters it is questioned
"hether the amount of the proposed
cut is large enough. If the present
building programme is carried through
1t VIII result in about 10000 900 tons
OF shipping, at total cost of about
$3,So0,O00000, including therein all the
funds expended directly or indirectly
IN producing them, such as amounts
appropriated for construction of wards.
housing projects, dry docks, terminal
facilities, etc.
Ihls means that the emergency
fleet will cost $3.50 a ton. 1t may not
be proper to figure it that way, for
the yards, docks, houses, itc., will have
certain residuary value Independent
of their contribution to the ships Of
the present programme, asthey will be
available for further construction and
operating use. Eliminating these fac
tors,the ships Will cost an average of
something more than $500 ton.
Fear Cut Is Inadequate
1t is considered doubtful whether $75
off $3.50, even off $500, is enough to
put American shipping on parity
with British. 1t is believed the writ
ing off" power is within the authority
of the Shipping Board, without any ad-
ditional legislation, and it is possible
tha some formal action may be taken
soon. 1t is expected vehement protests
vii be forthcoming from Congress
when the writing off" plan is officially
as it will be contcnded that
this is to make a handsome present to
the private interests that are expected
ultimately to purchase the ships
SO far as the situation has now de-
veloped, however, there are no indica-
tions of a rush to buy the ships at any
price, and the feeling is growing in
Shipping Board circles that unless Con-
gress DEGREES national ownership and
operation, the ships will, at first, have
to be leased rather than sold to private
operators. A high official of the
Emergency Fleet Corporation, who
holds that the ownership of the feet
must remain, temporarily at least, in
the government, has submitted to the
Shipping Board q definite programme
as the basis of discussion and evolu-
tion of plan Of dealing with the
problem.
Sale Problems Suggested
He assumed at the start that the
government will be compelled to retain
title to the ships for the following
reasons:
First-Thc total cost of the fleet is
50 great he puts it at least at SO .SOO.-
O0,O00-that he doubts whether all of
the ships could be disposed Of even
If their costs were written off so per
cent instead of 30. Buyers will be
scarce because of the tremendous
amounts involved and because of
doubts as to the possibility of profit
able operation under American registry
at any price. The heavy taxation now
being imposed by Congress will make
investors and promoters fearful of