The sun., 1919-03-05
SHIPYARD ECONOMY
URGED BY ROSSITER
Need of More U. s. Vessels Is
Imperative, Says Direc-
tor Of Operations.
WANTS RAILS RETURNED
Government Ownership Con-
demned by Him in Address
to Exporters.

ths United States Shipping Board. In an
address before the American Manufac-
tursrs Export Association luncheon At
the Hotsi McAlpin yesterday said
Americas tonnage was far below present
needs and that there had been vast
deal Of soldering on the part Of ship
yard workers. America can build ships
In competition with England and other
Powers, he said, but overhead costs at
the yards must be cut sharply to do %.
BY comparison with overhead costs
high wages paid in shipyards arc not
impressive. he said. Wages amount
actually to but per cent Of the operat-
Ing cost, while the overhead expense has
been running TO more than so per cent
Of labor and material combined.
Mr.. Rossiter severely condemned the
Government operation Of railroads, and
held that with regard TO ships such
regulation 10 utterly impossible" His
advice Is for the restoration Of railroads
TO private ownership, then to effect q
close alliance Of shipping with the rail-
roads by franchise extensions In order to
enable shippers from inland and other
points TO engage directly In foreign
trade.
FEDERAL Operation Unwiss.
He said:
Government operation 10 imprac-
ticable and prejudicial 90 far as It con-
Germs railroads. As to ships It II utterly
impossible. In unscramblins the rail-
roads trust II will be arranged 90 that
We will have at least two competitive
lines to all the principal ports Of export
and import. and as TO ships. that It ~lh
BE- arranged by q sort OF franchise
system so that lines will be encouraged
and supported II necessary by the Gov
eminent in consideration of regular
saiiings. announced q year In advance.
and that the Government maintain a
control OF maximum rates"
OF the shipping situation Mr.. Rossiter
said:
Nov that war Ii past we are still
facing a very grave situation because we
have not sufficient tonnage for our ma
tional requirements. Every day for
weeks and months past have had in
sistent demands for ships. and notwith-
standing that we have new tonnage COM
ing TO hand at the rate of $4,000 tons a
day find myself utterly unable TO take
care OF the situation.
at Is to be regretfully stated that at
this time We have applications for more
had to place on the deferred list while
strugyiing with the most urgent or pref
ersntial lists. The War Department still
requires a very large number OF our
ships. at this moment more than 2.000.-
o0U tons, for both troop and cargo move
mont Mr.. Hoover's programme for
European relief required last month
moro than $4,000 tons of ships a day.
Importnnt Trader Nerlected
Then we have the Belgian relief and
other demands. such as the rationins Of
Switzerland. Denmark and Italy. Thus
Il Is still a case Of ships and more ships.
At our best we are soreIy neslecting I'M
portant trades, including overseas berths
for general cargo as well as tonnage for
cotton, which should now be moving In
large tonnage.
THE results may seem very poor and
am sure are most Disappointing and
want to say earnestly to you that we are
entirely conscious OF the situation and
doing everything In our power. We now
hope to find the strain easing by the end
Of April. and when navigation from the
lakes opens We will have a lot of new
ships. While these lakers are small, we
can put them to work with advantage In
certain trades and thus release better
ships to other trades"
Pointing out the necessity for ship
builders to effect more economies over
head Mr.. Rossiter said that II costs
s1.750,oo0 to build a 10000 ton ship in
America. against cost OF $1,250,o00 II
built by a foreign shipyard. He insisted
on a generous scale Of wages, but said
that shipyards must reduce overhead
charges to the basis OF quantity produc-
ton"
Twenty Ship Lines Plotted.
American ships are Disseminated
against In rules OF measurement and
other stupid" regulations, he said, but
these can and will be changed On the
sehsr hand we have oil burning ships
which can be operated more cheaply
1r. Rossiter has plotted twenty ship
lnss for regular service to foreign dest-
nation which he believes feasible.
without a popular demand we cannot
hope to succeed" he said. we must
awaken a realization that our merchant
marine has q particular and personal
interest for all. American shipyards
effsciently operated can build In competi-
ton with the world"
Rear-Admiral Nathaniel r. Usher said
that the Navy Department is strongly
behind the project for a large merchant
marine. c. e. Spens. assistant director
Of traffic for the Railroad Administra-
tion. said that every effort will be made
TO cooperate with shippers and ocean
carriers for the development of foreign
markets. George f. Quinn. president of
tho association. read an extract OF a
letter from Secretary Daniels on the
enla xea.ent oSSAAI merch2-t usar.neroG