New-York tribune., 1920-10-28
Shipping Board
Profits Viewed
Will, Surprise
Vessel Operators .Cratifed
TO Learn Government Has
Been Making Money on
Its Fleet, as Benson States
Ship Offers at SIOO a Ton
British Yards Products i'm
Marke; Here at Half Cost
of the Boards Tonnage

ADMIRAL Bensons statement that tho
shipping Board is making money is
regarded with both surprise and graft
acation by shipping men here. Accord
ing to reports the board had been
operating for some time past at loss
Of more than million dollars day,
and it had been predicted that Con-
cress would be called upon for de-
aciencv appropriation Of 100000, 600,
~iolowng the opening of the session
IN December.
Previous to the arrangement Of the
new contract made with the operators
of its ships recently, indications were
that the board had been losing money
on operation. According to the old
zgreement the operators were to have
received a share Of the profits in addi-
ton to an agency fee for operation,
but although the old agreement had
been in force since last spring, it is
understood that no profits were an
rounced and no distribution maue
This coupled with the fact that the
board was laying up number of its
vessels because cargoes could not be
obtained which would enable operation
a. a profit. has strenthened the belief
not making money.
Under Tire new form of contract
operators viii receive fixed per
centage on the freights received This
plan has been made retroactive to last
March, and under it the board will be
required to pay out considerable money
in addition 10 the agency fees already
paid
Boards Bookkeeping Criticized
There has been much surmise as to
the system Of bookkeeping followed
by the board in Its operation and
previous announcements of profits
made have been criticized on the
ground that sufficient allowance was
not made for depreciation, insurance
and interest on Investment. BY failing
to charge for these items. shipping
men have pointed out, the board could
show profit, where one would be i'm
possible for private concerns.
In the old form Of operating con
tract. however, stipulation was made
for charges aggregating 231a per cent
on valuation OF $500 per ton. These
coupled with the operating costs, ship
ping men say, would make it practi-
cally impossible to make money on
the boards vessels under present con-
dtions.
Recently, it has been understood
the board has been collecting on its
$500 000 0OO worth Of claims against
the War Department for construction
and other work done. Sales of yes
sels have also brought in money, but
despite these sources of income, It
has been expected that the board
would call upon Congress for large
deficiency appropr Iatl0n.
Ga cf fbp rT : ypceelc hppO
proceeding slowly at the minimum
rates fixed recently, OF $3.50 to $lS5 per
deadweight ton for steel steamers. In
contrast with these prices, British
ships are now being offered for deliv
cry in December to American buyers
at 500 q ton. which is not only we'll
below the boards figures, but far un-
der the quotations for similar tonnage
made by American shipyards.
Cut in Ship Prices Expected
One Of the first acts of the new
shipping board, it is believed, viii be
to make material cut in the price Of
the governments vessels Shipowners
who appeared before the Senate Com
mlttee on Commerce last spring urged
that the shipping boards freighters be
sold to American buyers at $1UO ton.
To sell at that figure, however, the
Nodiu VIII De Ob44EtO 10 tdhc q AO19 C4l
ne construction cost of the ships that
will average about 500 ton, or half
the total building expense.
Idle ships are proving another costly
factor FOR the board. The Leviathan
alone. which has beeu lying at its pier
N Hoboken for the last year, is cost
ing thousands Of dollars monthly. 1t
is now reported that negotiations for
the sale OF the giant liner are again
under cons deration
According to statements from Wash
ington, offers are being made with q
view to placing the former Hamburg
American vessel in the imml grant
trade, IN which it is believed she could
De prohtably operated because of the
great tide Of steerage passenger tratlc
expected from Germany and Russia
when normal relations with those coun-
lres have been resumed to the extent
OF allowing their citizens TO emlgrate,
Leviathan's Future in Doubt
While $500 900 is the highest bid
reported as received by the Shipping
Board for the Leviathan, there ls now
said 70 be grounds for the belief that
about double that amount can be OBJ
tanned for the vessel
To recondition her for the hlgh
grade transatlantic passenger service,
including equipment for oil burning,
would cost 1t Is estimated, about $40