New-York tribune., 1920-12-17

me comparison, even on the basis
that nave taken, means that in order
TO earn clear per cent return on
the investment, an American shin of
1hls class and size would have to earn
appropriately 500 900 per annum
more than similar foreign ship op-
Grated by a competitor; that an Amer
lcan owner of an average feet of ten
such ships would have to earn an
proximately $1,000 600 per annum more
than a foreign competitor operating the
same number of ships; and that the
whole amount of the 10,OOO,O 900 dead
weight of American tonnage that | am
considering as available for service in
the foreign trade would have to earn
more than S100,000,00O per annum in
excess Of the earnings Of similar
amount of foreign tonnage operated
by competitors.
High Prices Limit Sales
The unfortunate result of holding
out for prices 100 per cent above the
market has been that only q negligible
number of ships has been sold. Few
of the old established companies felt
that it was prudent to buy ships at
such prices. A number Of the new
companies which contracted to buy, on
the lnstallment rlan, have had to turn
the ships back to the government, and
others have passed into receivership
Meanwhile the market value Of tonnage
throughout the world has fallen at
least $25 q deadweight ton and prob
ably more, and money conditions have
changed SO that new financing is i'm
practicable. Whatever the value of the
tonnage may have been year ago, its
value now is at least $3.50 900 900 less,
and the ships remain unsold. Thai
much more than this, when the ships
are sold at prices that can be obtained
for them in the future, is reason
ably safe prediction.
The principal handicap in operating
costs under the American flag at pres
ent is in the wages of the pers annel.
Wages for officers and men on the
typical American steamer of 8 800 tons
deadweight, used in the previous COM
parison, amount, at the present stand
ard of wages, to $5.315 month. The
wages Of an identical British steamer
amount to SO 924 a month. The ex-
cess cost to the American vessel is
1891 month, or Sl6,692 a year. On
an average fleet of ten steamers this
excess in wages is Sl66,920 u year;
and on the steamers aggregating 10
900 900 tons, that | consider available
for foreign trades, it would amount to
approximately $4,000 900.
Inefficiency a Factor
Further disadvantages in the cost of
operation result from less efficiency in
a part of the personnel available for
employment on American ships In
efficiency in this respect means larger
costs for repairs and failure to obtain
the greatest possible earnings from
operation.
Certain provisions of the seamen's
act, 1915, as amended by the mer-
chant marine act. 1920, impose addi-
rional burdens on American ships. The
compulsory advance of half wages to
seamen in foreign ports seriously af-
fects discipline and the working of
ships and involves expensive delays
Protests from forty consular Represent
atves, in foreign ports, against the
continuance Of such large advances of
wages abroad have been received by
the State Department and laid before
Congress. They say that these ad-
vances have led to dissipation, the
spread of disease, lawbrcaking, and
n some instances to crime; while ship
owners constantly receive reports of
delays of ships in order to obtain
s..c return Of tn, men on board.
These provisions, which do not touch
the chief purposes of the enactme ent