New-York tribune., 1920-12-31
Shipbuilders
Hit by Cut in
| Appropriation
I6use Committee Rejection
of Fleet Corporations
Sl47, 900, 600 Request Is
Serious for Shipyards
sles Outlook Poor One
are Boat Charter Plan Msy
Be Taken Up; Shipping
Board Funds NowProblcm


/ 1. lie action Of the House Appropria-
MS Committee in eliminating the
100000 appropriation sought for
., Emergency Fleet Corporation, to-
!, her with the cutting in half of the
piping Boards request for SS9S,00
dikely to have a marked effect on
vate American shipping and ship
lding interests.
What the action practically effects
to place the board and the cor
ration in position where their
ids will be dependent upon receipts
m the operation and the sale of
ps. Claims OF the board against
lther government departments are not
pected to meet the situation.
Shipping men point out that so far
the operation of government yes
goes no financial relief can be
>ked for by the board, rs it is i'm
ssible in practically all trades at
e present level of freights to oper-
at profit. In fact, the board is
ing called upon to meet heavy losses
,curred in the running of its ships,
NJ about two hundred of the govern
nt's vessels have been laid up, ac
ding to the board.
Ship Sales Situation
As matters stand, therefore, the
ncial receipts must come from the
es of ships. No step has been taken
the board as yet to reduce the price
its vessels from the range of $3.50
SlS5 dcadweight ton fixed last
INNER, although tonnage values have
creased greatly since then and for
.lsn vessels have been offered in the
Slferican market at less than Sl0o
n. 1t is evident that in order to-
arket it's tonnage the board must
make a sharp cut in prices, and even
S1OO a ton. ship owners say, 1t is
alikely that any large volume of ton
age could be- disposed of under the
:;isting conditions in shipping.
is the sl47 100000 sought by the
emergency Fleet Corporation is re-
.ardcd as an impossibility. If an
rerage initial payment of 10 per cent
I Ire secured it would be necessary
4 : the government 70 dispose of ship
Ing valued at ST. 100000 to raise
o $4,000 900. AT 500 deadweight
! this would represent 14,700,000 tons
shipping, OF more than the board
II the sl47,oOO,0OO appropriation
= .ght by the Emergency Fleet Cor
ration. S95 700 900 is required for
G completion OF construction now
nder way and s52 100000 to meet any
e:cits in operation and settlements
cancellation claims growing out of
- contracts.
k-.Sefious Blow to Shipbuilding
Failure Of the corporation to secure
is money will be q serious matter
American shipbulders, practically
OF whom have large amounts of
1ital tied up in government con-
KITS and for the payment of which
now appears they will be obliged
wait for an indefinite period. Not
current shipbu.lding, but much
pleted work, some Of it dating back
he var period is involved
lother direction in which the ship
ding Industry will probably suffer
.u regard to me plan for a specified
!. ant of new construction annually
sr the supervision of the board.
merchant marine act of 1920 pro-
for the creation Of construc-
Z; loan fund Of S2I 900 900 year.
system has not yet been put in
II ration by the board, and with the
] .sious outlook fo- the securing of
4 Ids. il is not likely that this aid
4 American shipyart.s will be realized
1 some time to come.
I The difficulties that will he met by
L. Shipping Board in disrosing of
aay large amount OF tonnage are in
grated by d recent statement of the
ssnlzation the total number of new
leel vessels sold has been only about
gs, aggregating 864, 900 tons dead
Fright.
May Adopt Charter Plan
One thing which is likely to result
'osn The House commttee's action in
}@e Inauguration OF the bare boat
lzsrter plan in place Of the present
I5stern Of allocating vessels to private
fssrators and paying them q percent
r. Of the freight receipts. With very
1ited funds at its disposal the board
cs. not Dc in p position to pay losses
scurred in cperatir. its ships BY
lsor::ag the bare boat charter plan
wiI receive fixed income from its
ssssls, although the Inauguration OF
system ia expected to result in q
1ked reduction in the volume Of
tSTsrnment tonnage in operation.
Operators Of government tonnage
am tnat wrong impression of their
ket'elon has been given by statement
I9aed BY the National Merchant Marine
3.ssociation to the effect .nat in pass
iS upon applications rom operators
III funds to cover losses incurred in
tas running OF it's vessels the Shipping
tosfd's policy was to be lenient with
f. operator who in the past had turned
yer considerable amount of money