New-York tribune., 1920-11-27
Shipping Board
Faces Slump in
Tonnage Price
Demand Falling Abroad and
Outlook for Disposal of
Large Number of Vessels
Not an Encouraging One
Less Inquiry for Tankers
PROPOSAL Is Made to Sell 20
Ships Monthly, Whatever
Figure May Be Offered

How to dispose or the great volume
II tonnage that has accumulated in
me hands OF the government will be
ne Of the first problems to be taken
ID Nv the newly appointed Shipping
Beard.
That radical reduction will be made
N the present scale OF prices is the
general expectation of shipping men,
Iut that even such q policy will fall
Jar short of enabling the board to dis
nose OF the bulk Of its ships seems ap-
rs!ent from present conditions in the
thinning world. Each month, nowever,
hat the board delays making the cut
msy lessen the chances of selling any
number @. the vessels. At present there
* gut OF tonnage abroad as we'll as
bere, and even the demand for tank
Us which has continued in the face
0: these conditions is slackening. Re-
sorts to the Shipping Board from its
European presentatives indicate that
the fore gu market is dead.
Delay by the Shipping Board in
aioptlng fixed policy for the sale
q its ships is regarded by shipping
men as having been most costly to the
government. Not until last summer,
Searly TWO years alter the armistice,
vas definite sales system decided
upon. By that time, however, the peak
Of the demand for tonnage had been
gsssed and although the price scale
adopted was considerably below the
figure at which tonnage could have
been disposed of for some time follow
i1g the armistice, the level was too
high later TO attract buyers to any
extent. II is pointed out that The sales
that have been made by the board have
been. in practically all cases. not to
sne old established lines. but to COM
Parative newcomers IN the shipping
business.
SlO0-a-Ton Price Urged
Representatives, of the American
Steamship Owners Association, ap-
pearing before the Senate Committee
on Commerce early in the year, ad-
y0cated that the ships be placed on
sale at 500 ton. This would have
meant 20 cut the cost Of construction.
- the board more than so per cent
however, and the step was not taken.
In the summer, however. q range of
Erees from $3.50 to s1s5 a ton was
adopted, 1ut few sales have peen made
!, these figures, and in the mean time
SHIPS built abroad have been offered
II me United States at less than SlO0
ton.
During the hearings before the SEN
lie commerce Committee it was estl-
mated that American interests could
not at once absorb more than five or
tx hundred vessels. AS Of November
the cocumented seagong vessels of
re Shipping Board totalad 1,7l4, of
'Ssl 600 gross tons.
Nh..e ihele IS at present an un-
~
.his is dae not SO much to overproduc-
ion Of ships as to underproduction Of
manufactured goods, notably in Eu-
:ope. and inability OF foreigners to
snsnce purchases from this country
With an Increase OF production abroad
and the restoration Of Russia, Ger
zany and Au tria TO pre-war CONNER
:ai conditions. the situation will be
improved but the process is likely to
De very gradual one.
Reports TO the Shipping Board from
abroad state that during the past
month there were many cancellations
q orders with British shipyards, and
TIE general shipbuilding situation had
grown worse. there being little or no
inquiry, either British or foreign buy
ers.
Foreign Outlook Poor
Under these circumstances" it Is
stated, at is not surprising that the
market value Of tonnage is steadily
declining, and it is more than probable
hat the prices will fall still lower"
l The problem for the Shipping Board
70 solve, therefore, is what to do on
falling market in the face of gen.
sfal demand that the government get
| aut OF the shipping business as rap
| idly as possible. Great Britain faced
| he situation almost Immediately after
ne armistice by disposing Of the gov
1 eTnment- owned tonnage for any fair
| Price that Il would bring. Recently
! 5F'taln has been seeking TO sell the
| sx-1err7an tonnage allotted to it, but
sas found the task more difficult than
nat Of two years ago.
1 The S30o000o coo puzzle Of the
American government can be solved in
lree words-"sell the ehips"-says
me Marine Review. This suggestion
Is offered to Admiral Benson, chair
aan Of the board Sell at least twenty
sTe ships month. Sell them on a
! a1ed day each month and sell them at
Nices offered. Sell them as ships and
sos as scrap metal-oonds guarantee
'ag the performance Of the sales agree
ae.t could insure thir.
Even this rate OF sale would re-
d21irs i've or six years TO sell all the
3hips, and in that period an ppward
lAa'ket can De depended upon to bring
<'ter prices than the original sales.
.his condition Of q stronger buying
so*er VII result more quickly il a
ainimuna fchedule Of ships 2 sold reg
ariy and surely.
me months before the new admin
"Fzuon are not necessarily a period
A ~ rcarfl ~ Z ne The . M rnnst hA