New-York tribune., 1920-11-22
In the World of Shipping

With the Walsh Congressional in
vcstigating committee drawing from
witnesses pictures of Shipping Board
millions pouring in an endless stream
INTO the pockets Of shipping interests
and with the courts appointing receiv-
ers for shipping companies, the aver
age onlooker may be excused for not
knowing whether to decide that ship
ping is highly profitable business OF
a highly undesirable one.
In fact, neither is the case. In nor.
NAL times even the most efficiently
operated lines do we'll to maintain an
average dividend rate of 6 per cent
and the inefficiently operated ones ga
to the wall unless their purse is long
enough to survive the period of thci,
inefiiciency Shipping, like all other
businesses, since the beginning of the
war has been through an abnormal pc
riod; it is now on the way toward ap.
preaching a normal one and in the
interval inefficient concerns and those
which have been depending on the gov
ernment for support will gradually dis
appear. What remais will constitute
the fundamentals Of a real American
merchant marine.
While there has been much official
blundering and much graft AS re.
suit of that laundering, much of the
matter brought out by the Congress
sionai investigating committee has
left false picture of real ship
ping conditions in the public mind
Many of the practices complained OF
sprang up in the rush of the war period
and have long since been done away
with, but they have been presented in q
manner that has led the public to be-
lieve chat they still continue. An ap-
plcatlon of dates to great part OF
the testimony before the committee
would show that the past and not the
present was the occasion of the occur
rences.
Shipping VIII Go Ahead
One benefit of the investigation has
been the object lesson presented of the
costliness and folly of the governmen;
attempting TO enter into highly com
petitive business. Monopolies NAV sue.
ceed where they are national. but shin
ping is international in essence, so fa1
as 1T IS utilized for foreign trade, and
1T is in this utilization that benefits
will be brought to American commerce
The country cannot go back to the
million tons of shipping it had en-
rolled for this purpose at the outbreak
of the war. Whether it can find imme-
date and permanent employment for
the ten million tons now registered re-
mains to be seen. That government
aid Will be necessary is the belief Of
American shipping men. As to what
form that aid should take there are
many opinions. The merchant marine
act is regarded as an excellent ground
work for the shaping of an aggressive
marine policy, but it is not likely to
stand as the last word in that direc
ton.
Indications now arc that the en-.
forcement of preferential rail rates or
goods exported and imported in Ameri
can bottoms will be made effective the
first of the year. How the shipping OF
other countries will meet this step is
not known as yet. American ships
have cost more than those of other ma
tions-more to build and more to op-
crate. There exists, therefore, diff
ferential in favor of other merchant
marine that enables them to work at q
lower level of freights than American
shipping prohtably can. Preferential
rail rates are counted upon to aid in
eliminating this ditferential. There are
many shipping men, however, who be-
lieve that the establishment of prefer
entails will be met by reduction in
freights by the shipping of other ma
tons that will offset the advantage
given to the American merchant ma
rine. There is also talk that ali the