New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-08
ON
Classifying of
Ships Is Upheld
Shipping Board Obligated by
Law, Declares Official of
American Bureau Named
to Supervise Construction
Government to Approve
ssMust Sanction Vessels To
Be Built Under Exemption
Granted by Marine Act''

Criticism or the ruAnS Dy the Snip"
nine Board that all vessels built partly
With exempted profits must be CLASH
ssa BY the American Bureau of Ship
ming has brought reply from the
huysau, stating its side of the case.
caetain C. A. McAllister, vice-president
~ The American bureau, holds that the
Shipping Board is obligated by law, as
we'll as by It's desire to protect govern
msut interests, to have vessels classed
as decided upon.
Captain McAlNster's statement is in
answer to one by John r. Gordon, traf-
Ae manager of the Union Sulphur Com
psay published in The Tribune yester-
day. and is as follows:
sMy attention has been called to the
views Of Mr.. John r. Gordon, regarding
Classification of vessels to be built
unaer the tax exemption clause of the
Merchant Marine act. 1920. AS my Manu.
il mentioned in connection with this
alisged outrage on American shipown-
ers, take great pleasure in pointing
uut some of the facts in connection
with the matter. which seems to cause
Mr.. Gordon so much perturbation and
real apprehension as to the future of
tue American Merchant Marine. 1t may
be recalled that this is the same Mr..
Gordon whoEe warm admiration of
Lleyds Register and entiye disappro-
baton of this American classification
society. are matters of official. record;
II might also be we'll to note that he is
member of the committee of Lloyds'
Register in this country. and in conse-
euence it may b. assumed that his
opinions fairly reject those of this
great British society.
Encouragement of Shipping
"Shorn of all technicalities, this tax
exemption construction represents an
effort on the part of Congress to en-
courage the upbuildng of the American
Merchant Marine. The war and excess
profits taxes may not be levied on GER
tain shipowners providing they agree
to construct new vessels in American
shiryards. The only limitation of this
exemption is that it shall not exceed
ore-third the value of the new ship.
At the present cost Of ships in Amer
lean yards this exemption in many in
stances may amount to upwards of a
half million dollars.
THE act makes it obligatory that
the Shipping Board approve the type
and kind of vessels 10 be constructed.
The mere construction of q ship in an
American yard is not the only object
to be obtained. for it is the announced
policy of the United States, to which
the Shipping Board is bound to adhere,
70 do whatever may be necessary to
develop and encourage the mainten-
ance of the merchant marine An
American classification society, as
every one will admit who is not
violently prejudiced. is very essen
slal adjunct Of our merchant marine.
further, the same act des.gnates the
American Bureau of Shipping as the
official classification society of all
branches Of the government.
THE natural question which arises
is, therefore, how could the Shipping
Board do otherwise than to designate
American classification for ships in
which half million of dollars or
more tax exemption is granted for the
sole purpose of aiding the develop
ment of the American merchant
marine? How would they know that
sheir approved plans and types were
carried out if they did not rely upon
TINS American classification society. in
stead OF a foreign classification or
ganizstion?
Classification Situation
Can any one imagine a more illogi-
cal situation than for the American
government to grant on one hand a
aege tax exemption to encourage
american shipping, and on the other to
entrust The entire classification survey
OK THESE new ships to citizens of a
foreign country, and that very coun-
Wy our leading competitor in ship
ping matters?
, imagine for one moment what would
happen il conditions were entirely re-
sessed and Great Britain was to ex-
sfapt certain new ships from govern
Iehta! taxes. Would an American
classification society, or, in fact, any
american institution, be allowed to
rave anything TO say about plans or
aetaiis of construction? Not in a
thousand years, and no one would ever
SSsstielze our British cousins for re.
lueing to do so. This whole propa-
Sshda IS the most ridiculous thing /
nave ever heard Of.
=, The American bureau is now and
always has been opposed to enforced
Tsaassiflcation for privately owned ships
lnese ships accepting this govern
. a,G and are, however. in an entirely
aiserent class. and for their classified
Son the Shipping Board is obligated
ey 1aw as we'll as their desire TO pro.
fSet the interrst9 80 tLa ooua~nr,an,