The sun., 1919-03-02
SHIP ECONOMIES AT
LIMIT, SAYS HURLEY
Asserts That Further Cancel
lations Will Upset Bust
ness and Labor.
CUTS OFF $50 VESSELS
Writes Representative Sher-
ley Expensive Litigation
Will Follow Reduction.
CUTS OFF $50 VESSELS
speciaI Despdtch to THH suS.


WASHINGTON. March There vfll
be no further curtailment OF the Amerl-
can shipbuildlng programme rs at pres
ent projected unless Congress fails to
appropriate the necessary funds to carry
out the commitments.
Statement to this effect was made
by Chairman Hurley Of the Shipping
Board In letter to Representative Sher-
ley (Ky). chairman Of the Appro-
rriations Committee. Mr.. Hurley wrote
that the Shipping Board was con-
WINGED that cancellations OF con-
tracts had reached a point beyond which
II was dangerous to go without possible
disastrous effect on the general business
and labor situation as well as the ship
building industry.
The letter states that none of the
funds asked is to be expended for new
commitments, but Is required to meet
obligations already entered into. The
contracts were let In the midst OF the
war cry for ships. The appropriations
asked are tied UP in the last minute
jam in Congress.
The building programme was cut
down last September when many wooden
ship contracts were cancelled. Another
cut was made after the armistice was
signed. The cancellation or suspension
orders totalled $50 vessels of 270O, 900
tons. Further cuts. Chairman Hurley
states, would, In the opinion Of the Ship
ping Board, enhance costs rather than
lower them. The letter adds:
There would come time in the
programme of cancellation where
the just claims for damage on the
M ha a1fo 10
exceed the cost of completing the
vessels they have engaged to build.
II would be very easy to destroy our
organization and machinery for
bodybuilding and set in motion a
machinery for litigation and defence
OF claims.
I'VE are already presented with
heavy claims for damages as the re-
suit OF the cancellations we have al
ready made. To make many moro
would create a perfect orgy OF lti-
cation. 1t would disturb the labor
conditions OF the country. 1t would
cause failures In the shipbuilding
trade. 1t would destroy the for
tunes of people who have invested
In these industries at the nations
call.
Question of business Sense.
The whole question Is one Of
business sense and sound policy
After a careful study we have
exercised the best judgment which
was possible and our request for
appropriations Is founded upon this
Judgment.
1T il of course within the power
OF the Congress TO cut down further
the shipbuilding programme. There
are many contracts which can be
cancelled. but in our opinion tbs
loss which would occur in damages
and in the dsarrangement OF the
industry throughout the country
would be greater than any loss that
could possibly arise from carrying
out the programme.
1T Is not pleasant TO be put in
the position Of repudiating ones
contracts. 1t is an unpleasant posi-
ton for an individual. 1t Is more
unpleasant for a nation to repudiate
its contracts with Its own citizens.
Further Reductions Unwise.
When this must be done TO save
the nations finances all patriotic
citizens will accept the situation and
suffer the loss imposed, but would
not cancellation OF contracts
based on fears rather than upon
sound judgment be unwise as i'm
posing such losses unnecessarily?
THE conclusions which We have
reached we believe are sound with
out regard to the exact nature OF
the plan which will be ultimately
adopted by the country for the or
ganization. maintenance and extern
sion OF an American merchant ma
rine. Naturally, however. the ques-
ton OF individual ships and their
value will be much affected by their
adaptation TO the plan which may
ultimately be adopted. The Ship
ping Board is giving careful thought
to compiling information and the de-
velopment OF a plan. 1t expects to
submit to the Congress a report OF
the information which II has col
iected and suggestions as to a plan
for an American merchant marine
based thereon"