New-York tribune., 1920-12-07
Harding for Aid
To Offset High
Sl,ipLaborCost
about SI5.OOO.OOO a Year
Is Estimated Figure; Bare
Boat Charter Plan Urged
to Help Meet Competition
Seamen's Law a Burden
Handicap Put on American
Vessels May Be Overcome
by Congressional Action

That President t-elect Harding Savors
financial aid by the government to
oFse. thc higher labor costs on
American than on otaer vessels is the
interpretation placed on his statement
Z Norfolk. Va, that III the LIS Fol-
,s..e seanens act represents the con-
,rience @: the American people, and |
believe !. does, then the American
government ought 70 tcp in and share
the burden It imposes"
Under the La Foiielte law American
ships ere required to carry larger
crews than the vessels of any other
nation and the extra cost, coupled
with the higher wages paid on Ameri-
.sn vessels, has been & handicap in
meeting international competition.
An annual appropriation TO offset
.he difference in labo1 costs on Ameri-
can and British vessels, il is esti-
mated. would amount to something
between Sl5,000,000 and o,o00 600.
United States Wage Bill higher
On an average vessel of 10000 tons
deadweight, il is figured, the Ameri-
can bill for wages is about $1,000 to
$1,000 month greater than on Brit
'sh vessel OF the same size, or from
1900 to $4,000 4 year For a sea-
going fee of 100000 tons dead
weight, which is about the present size
Of the oceangoing American merchant
marine, the yearly difference would
therefore be from Sic, 100000 to
$4,000 coo.
Shipping men point out, however,
ina. the heaviest handicap on the
American merchant marine is in the
capital cost, which is much greater
than that OF other cations. Shipping
Board vessels, for instance, represent
: capital cost Of about 5000 q dead
weight ton, compared with an average
oi perhaps about half that sum for
British vessels. Some foreign ship
ieets market down TO a much lower
agure The Nippon Yushen Kaisha
Line, largest of the Japanese COM
-anies, for example, has written the
book value OF It's SHIPS down to about
$40 ton.
Bare Boat Charter Advocated
One way in which the government
can put the Shipping Board vessels on
cap OF greater capital costs for Amer
can operators, It IS argued, is to adoDt
he bare boat charter plan and make
me charter rate similar to that asked
or foreign vessels. The bare boat
plan has been advocated by the Amer-
can Steamship Owners Association.
and Admiral Benson, chairman Of the
Shipping Board, has indicated that he
s inclined 10 apply it to the govern.
men,s tonnage, after fair trial mas
oeen given TO the present system Il
slloeation with percentage Of the
'relght moneys paid to the operators.
Privately owned tonnage, under the
American fag. u6st OF which has been
n operation Tor some years past, has
asen written of largely for depreca-
Ion through earnings made during
re period o. high freights and is
much better equipped for competition
han the Shipping Boards tonnage
That allowance must be made for ,e
probation in the case OF the govern,
neHt's ships Is unqlestioned. for the
government, cannot continue indetin:te-
: % carry its tonnage at war values,
especially in period Of declining
f-eights ard lower ship values.
II Mr. Hardings suggestion for an
appropriation TO Offset the disadvan
.ages o. the La Toilette law il carried
crt, and this is supplemented by bare
0oat charter plan on tnc basis on
Nnel, shipping men say, long stop
Til be taken toward placing tre
American merchant marine in posi-
-ioa 70 meet any competition OF the