New-York tribune., 1919-01-23
Conference Aims al Definite
Plan of Operation for
New Merchant Marine
High Cost Main Obstacle
Opinions Differ on Advisa-
biliiy Of "Writing OFF, a
PART of Huge investment
BY Theodore M Knappen
New Yo'k yribune
y CS.ai1ictOn RLrccu


p Ncsiiinct0n Bhrcca
WASHINGTON, Jan. %. Many out
standing figures in the ship owning
ship using, operating aad building. and
general business interests Of the
United States gathered IN the auditor
ium of the National Museum .o-dav to
"scuss tho merchant marine problem.
inc conference was callei by Senator
hansdeli, of Louisiana. with a view 10
crystallzation Of public tpinioN in
favor Of some definite policy for con-
lNcl and operation of the feet Of 16.-
100000 tons the government is build
ing as we'll as Of conserving The in
terests Of the American merchant
marine in general
One Of the first subjects that caused
discussion was the high cost Of the
national marine. which is conceded to
be in the ncighhcrhood of 5000 ton.
In mentioning This figure, fully three
times what j: was before the war
}. w. Alexander, chairman OF the
House Committee on Merchant Marine
and Fisheries, said capital and labor
mad combined to make prices high ard
the Shipping ijoaro was powcress to
obtain economical construction. Wal
lace Downey. Of the Downcy Ship
building Company OF New York re
schtcd the statement, which he con-
strued to mean that owners of ship
yards and labor had entered into a
conspiracy to rob the government.
Mr. Alexander explained he had not
meant that there was a combination
to cxtort high prices in any strict sense
OF the word. but the demand fer high
wages and high profits had resulted In
an unnecessarily high cost Of the ships.
I. S. and British Costs Compared
This led to discussion Of relative
costs Of shipbuilding in America and
in England, and it was agreed that
ships sold in America for about $50 a
ton before the war that would cost at
least $3.50 to build now. and that in
England the cost had gone up from
about $35 to $40. Philip Manson of
New York. insisted that ships were
costing the British government only
$75 or $50 ton.
Senator Duncan Y. Fletcher, chair
man Of the Senate Commerce Com
. mittee, opposed writing off the excess
cost of the cmergenc! ships and advo-
Gated retention OF the governments
title with private ownership operation
on some sort of profit sharing or fee
basis MIR. Alexander took a position
opposed to government ownership and
operation. although he con*s ded that
ownership might be unavoidable. He
had. he said, always been opposed to
subsidies. but he wa, now determined
to "go the limit" to keep the Ameri-
can Merchant Marine intact and pros
porous and would favor governmental
aid wherever its necessity was demon
strated on the condition that such as
s.stance be extended wisely and u
diciously.
This announcement called forth loud
app ausc, and a delegate from Texas
arose to say that whatcvcr tic aui-
tude Of the West and South had been
in the past the interior. which con-
tributed Is per cent Of the agricultural
products that made up 60 per cent Of
the export trade, was more interested
in building up and maintaining the
feet than the scabcard itself.
Hurley Idea Called Premature
Mr.. Alexander "grccd that there was
need Of II campaign of education III the
West, but be didn't know that it was
necessary to 20 that fay 10 make a
start He referred to the suggestion
of writing cN 81 1000 100000 OF cost as
premature in view of lack OF knowl-
edge of the world shipping situation,
which was now being studied by the
Shipping Foard, bu. insisted that the
government should stop buil0lng ships
for 5000 a ton that it must sell at $i00.
Taking up the scaman's law, Mr.
Alexander bluntly assumed luil re-
sponsibility fer 1T, and made y vigor-
Gus defence of it,. II had made Amerl-
can scamen free men,. he assorted and
there was no chance chat Congress
would reconsider it. He admitted 1t
initiated against efficiency Of opera
tion to some extent, hut it WAS q
democratic measure, and democracy
was generally less efficient than auto
cracv.
Harry A. Wheeler, Of Chicago, pres
i0ent Of III" Chamber Of Commerce OF
the United States. favored frank rccog-
r;tion OF the diNerentals bctv cen
American and foreign shipping opera
tions and government action TO equal
izc them. One Of the first things to
do, in his opinion, was to write OIL the
excess cost OF the national shlps
Either that must be done or the ma
tion in one form or another would have
,c stand additional taxation Indefinite
". He urged campaign Of publicity
TO formulate Il programme.
Wants Canals Considered
Mr.. Wheeler urged The ultimate pro
sranmc should include rccogiition OF
inland waterways and thor linking up
with the ocean shipping. He proposed
q series oi conferences, similar to
those the Chamber Of Commerce was
holding with regard TO the railways
IN order to evolve a concrete pro
lraMmc.
Homer l.. Ferguson, president Of the
Newport News Shipbuliding Company,
f, opposed government operation OF the
emergency ships as Ire to be ncfil-
cient He declared that even II the
successful operation of ships under the
administration flag was costly to the
government, it must be remembered
| that successful Merchant marine
meant many other sources OF income
than the actral transportation revenues
as FOR instance tho insurance system
that could be bui up with il, which
in the case Of England brought in hun
drcJs or millions year to British in
Ycstors.
Aside from efficiency Mr. Ferguson
asserted actual ownership and opera
ton or ships by tho government would
make every petty shipping dispute al
over the World an international ques-
( ton While Mr.. Ferguson was opposed