The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-07-21
war costs
IS SHIPPING
PROBLEM
U. S. Marine Men Find Dif.
flculty In Meeting Subsidy
OF British Ships
NJ HARRY n. HUNT

WAtfttN1loN. July 1.-tuc
least Of the difficulties Of American
shipping In competing with the mer>
chant vessels of foreign nations Is
the difference In wages paid Amcri.
can scemen.
The public generally. because OF
the long fight made against the la
Toilette seapan's act. has been led
70 believe that the higher wages and
batter working conditions required
for the crews Of American vessels Is
one Of the big handicaps to American
vessels competing In the world ship
ping trade.
CAPITAL CHANGES
CAUSE BIG BARRIER
The big barrier. financially. how.
ever. Is tho difference In capital
oharxes that must be met by the
American owner and operator. TAX
Ing British boat for comparison
Tor Il Is with British shipping that
our vessels most often come into
ccfnpetition--let Us see how this
operates.
Uncle SANS merchant marine. on
~
built at wartime prices. Its cost
varied from about si7s to ss2s per
ton-avcraging about t3oo.
Great Britain's merchant marine.
on tho other hand. Il less than half
Of wartime construction. Its aver.
age cost. ton for ton. therefore. Ia
much lower. Just before the war.
TOR Instance. British freightcrs were
being turned out NJ from $40 to $50
per ton.
Recognizing the q. 8. competition.
the-war acts, moved 20 take from her
merchant shipping any added costs
that would result from the higher
prices Of shipping built after 1914.
DR1TON RECOGNIZES
PREwAR VALUES
A. the first and biggest step to-
ward his end. she adopted n policy.
under a ruling by the minister of
finance. recognizing pre.war values
- the proper basis for future capt.
taiixation and taxation OF merchant
vessels In order that vessels built
At war prices may DO brought in
under such low capitalization. pro-
vision Is made for the application of
profits to retire capital investment
until II Is brought down to $50 per
ton. or such lower figure an would
havsNreprcsented the prc.war value
- the type OF vessel operated By a
gwen concern.
By this provision. which amounts
= . sisantic subsidy In taxes waived.
oritish shipping Is placed In position
= undsrbsd American vessels on
exsry trade route In the world. un.
America, by discriminatory
(Ngts1Auon in ,nvor OF American YES
ais. insures special ADVANTAGES and
Protection to them In the handling
- frcights TO or from this country.
J. II. Rosseter. formerly director
- operations and trustee OF the
Emergency Fleet corporation. says:
The total cost OF manning and
victuaiing a io.ooo-ton freight ship.
under the American scale Of wages.
= less than $1,000 per month. The
present English cost Ia only very lit
~ lower.
''On the basis Of cost and present
values. this vessel represents q capi.
tai Investment OF $4,000. 900.
WHAT FIGURES
SHOW
Three Items--depreciation, Interest
and NEUTRALITY-SUSPICIOUS.. on a proper
hAsis. to about Is per cent annually.
"On the American weasel. then.
maintaining n capital Investment OF
$4,000. 900. these items would amount
70 $3.50. 900 a year.
'On the basis to which the British
are assisted 20 write down their CAPT.
tai Investment. the same ship would
require. for the same items. only one.
fourth that sum. or $780, 900 year
American shipping men say that
either the u. 8. government must
provide-es II has provided In the
merchant marine act Of is2o--to pro.
tect them. or the valuations on the
vessels. either for sale or lease. must
Be reduced 20 a basis comparable
with that established by England for
computing capital charges.
As to the readiness with which
Britain would take up any issue OF
shipping. 1t Is pointed out that be,
tween one-half and two-thirds OF the
members of parliament are directly
Interested IN British shipping as
Stockholders. directors and Officers In
vessel owning or operating com.
panies.
Senator Jones Will