New-York tribune., 1920-02-18
Hoover Gives
Views on Big
u. S. Problems
Continued from page l

ouate transportation facilities and
their responsibility for intermittent
operation Of mines.
"The return Of the railways TO- the
owners places predominant private
operation upon its final trial. If in
slant energy, courage and large vision
in the owners should prove lacking IN
meeting the immediate situation. we
will he faced with q reaction that will
drive the country to some other form
Of control.
energetic enlargement Of equip
ment, better service, cooperation with
employees, and the least possible ad-
vance in rates, together with freedom
from political interest, will be the scales
upon. which the public will weigh these
results.
"Important phases Of our shipping
problem that have come before you
should receive wider discussion by the
country. AS the result of war pressure,
we will spend over $2,s00000,000 in
the completion Of fleet of 1900 ships
of total Of 100000 tons-nearly
one-quartcr Of the worlds cargo ship
ping We are proud of this great ex
pansion of our marine, and we wish to
retain it under the American flag.
"Our shipping problem has one large
point Of departure from the railway
natural monopoly. Any one with a
seas to-day, and our government is
now engaged upon the conduct Of ma
tionalzed industry in competition with
our own people and all the world be-
sides. While in the railways govern
ment inefficiency could be passed on to
the consumer, on the seas we willy
sooner or later find it translated to the
national Treasury.
Until the present time there has
been shortage in the worlds shipping,
but this is being rapidly overtaken, and
we shall soon be met with fierce COM
petition Of private industry. If the
government continues in the shipping
business we shall be disappointed from
shall be faced with the ability or pri-
vate enterprise to make profits from
the margins of higher cost Of govern
ment operation alone.
aside from those losses inherent in
bureaucracy and political pressure,
there are others special to this case
The largest successfully managed cargo
fleet in the world comprises about 1870
ships, and yet we are attempting to
manage 1900 ships at the hands Of the
government bureau.
I'VE shall yet be faced with the
question Of demobilizing a consider
able part Of this feet into private
hands, or frankly acknowledging that
we operate it for other reasons than
interest on our investment. In this
whole problem there are the most diff
hcult considerations requiring the best
business thought in the country. In
the hrst instance, our national prog
ress requires that we retain a large
fleet under our flag to protect our ma
tlonal commercial expansion overseas.
"Secondly, we may find it desirable
to hold considerable government feet
to build up trade routes in expansion
OF our trade, even at some loss in
operation.
"Thirdly, in order to create this fleet
we nave hullt up an enormous ship
building industry. Fifty per cent of
the capacity Of our shipyards will more
than provide any necessary construc-
tion for American account. Therefore.
there IS a need Of obtaining foreign
orders, or the reduction of capacity.
or both.
~ believe, with most engineers, that
with our Skill in repetition manufac
ture, we can compete with anv shin
builders In the world and maintain our
American wage standards; but this
repetition manufacture implies a con-
stant flow of orders.
when we consider giving orders for
new ships, we must at the same time
consider the sale of ships, as we can
not go on increasing this fleet. When
we consider sale, we are confronted
with the fact that our present ships
were built under expensive conditions
OF war, costing from three to four times
per ton the prewar amount, and that
already any merchant, subject to the
long time of delivery, can build ship
for 70 per cent of their cost. 1t would
at least seem good national policy to
sen ships to-day, for the price we can
contract for delivery year Or two
hence, thus making the government a
reservoir for continuous construction.
Our joint engineering committees
nave examined WITH a great deal of
care into organization of and our ex-