New-York tribune., 1919-04-26
Chairman Hurley Announces
Stopping of Work on
100000 Tons Since
Signing of the Armistice
Builders Not Surprised
Shipping Board Chairman
Indicates Peace Prices
Will Be Insisted Upon

WASHINGTON, April 25,- Cancella-
ton of contracts made during the war
for construction of two million tons
of steel shins WAS announced to-day by
the Shipping Reard. which is preparing
.u close government work in many
Yards throughout the country, This
hringa total cancellations since the
gnng of the armistice to four mil
ion tons,
IN the hrief announcement iaeued
rom the office OF Chairman Hurley
no reference wae made to the actual
number Of contracts involved or TO
inc yards affected by tho cancellation
order 1t Nas explained. however, that
action at this time would not come ms
"a surprise TO builders, as notice was
scrvcd on them months ago OF the
boards new policy. tho chief feature
of which was the elimination OF build
lng plans for all ships under 10000
tuns.
At the end Of March about 800 ships
FOR the board had been launched, but
not delivered. These ships represented
a tonnage of about 100000. On the
same date keels had been laid for some
300 ships, aggregating 100000 tons.
shipping Board officials said they were
unable to give the actual number of
contracts outstanding or later figures
than of March 81. 1t was Indicated,
however, that yards like Hog Island,
along with smaller plants on the Allan
tic, Pacific and Gulf coasts, would lose
some government business.
Back to Peace Prices
Chairman Hurley, of the Shipping
Board issued the following statement:
Since the signing of the armistice
on November II, 1918. the Shipping
Board has cancelled contracts for more
than 100000 tons OF steel ships.
I'm figuring out the balancing of our
fleet, we now find it necessary to can
eel an additional 100000 tons of steel
ships.
On some of the old and established
yards we are now paying from $195 to
t295 per ton for cargo steamships and
oil tankers. In some Of the new and
inexperienced yards we are paying as
high as $500 per ton for cargo ships.
"As these are war prices and as we
feel that we should now be building
only on peace prices, we are now con-
sdering canceliing all contracts where
heels actually have not been laid"
Three days after the armistice Chair
man Hurley announced that the board
had been making q complete resurvey
oil its construction programme and
contracts. From that time on, he said,
it was planned to build ships with ref
erencc to suitability for special ser
vice, and with particular reference to
more economical cost of operation.
During the war, while there was a
pressing demand for tonnage contracts
were placed without regard to cost,
condition which tho board agreed
could not continue in peace time
Builders Knew Policy
In view of the plans for d changed
system of building, it was said that
builders, and especially the smaller
yards, knew months ago whether they
would be affected by government can
collation., regarded then as uncertain
Bids for the purchase of 431 wooden
steamer hulls and thirty-one wooden
barge hulls were asked day by the
Shipping Board. as part OF its pro-
eramme for disposing Of surplus bot
toms constructed during the war
emergency
The building programme was so gi-
gantic in proportions and so success
full in accomplishment that with the
sudden ending of the war it was found
more keels had been laid and ships
completed than now will be required