New-York tribune., 1920-11-15
Foreign-Built
Ships Threaten
u. S. Industry
American Yards Future Is
Menaced by an Impending
Invasion of Cheap Boats,
Developments Indicate
Laws Leave the Way Open
Permit Registry of Vessels
for Our Foreign. Trade,
Shipping Authority Says

Recent efforts of British, French and
Norwegian interests to find American
ourchasers for foreign-built ships.
vith view to registry under the
American flag, have not been success
ful. but they are regarded as fore
runners of concerted attempts to in
wade the market here with a large
volume Of tonnage for which no pur-
ebssers can be found in Europe. As
the tsnkers and cargo vessels that have
already been offered have been quoGed
Al prices we'll below the cost Of pro-
duction Of similar type in American
shiuyards, shipbuilders are disturbed
over the prospect.
The favorable position in which the
foreign exchange places European sell
.rs in the American market is another
handicap under which the American
shipbuilder is laboring.
Until recently, figuring on g normal
.xchange basis, ships were built here as
ebsaply as abroad. and foreign orders
eould have been booked in large vol
uule had it not been for the heavy
premium the foreign purchaser would
have had to pay on exchange. Re-
,ently, however, there has been a
marked decline in the prices of ships
and now the foreign shipbuilders and
shin owners are seeking to sell tonnage
In this country.
U. S. Shipbuilding Threatened
How American industry is menaced
BY the situation is pointed out by Alex
ander R. Smith, in an article on Tariff
Protection in the Periscope, pub-
ished by the Staten Island Shipbuild-
Ing Company.
Smith, that oreign-built, even if
Anercan owned, slips were admitted
to American registry; that is to say, to
engage only in fore gn trade. At that
time the privilege was limited to toc.
e.gn-buiit ships not over FIVE years old,
so as to prevent tits country from be-
coming a dumping ground for worn
ov+ ,,reron ~ icsl fr.eigr shirs
"That law had been an effect almost
two years when the great war began in
vessel had come under American regis
try rs a result of it, The five-year
qualification was removed in August,
1914. and foreign-built American
owned vessels were admitted to Ameri-
can registry and given exemption from
our drastic steamboat inspection laws
and were permitted to come in with
their foreign officers and crews.
About 100000 tons of foreign built
ships came in as a result of that PRO-
y;so.. and the desire of their owners
!c secure the advantage and protection
ola neutral flag. as ours then was.
Laws Are Still in Force
Those recently enacted free ship
laws have not been repealed And un-
less they are repealed when times be-
come normal and British shipyards
have fully met the demands of British
ship owners, foreign ships will be pur-
chased instead of american for the re-
plenishing and expansion of our ship
ping in foreign trade, because by that
time foreign ships will be built much
more cheauly than ours can he. Il.
too, as is expected, our laws will dis
tr;mlnate in favor of ships under the
American flag, then there will be largc
Increases in our tonnage.
In tHe first American tariff law,
that of 1889, provision was made for
the protection of American ships. The
duty, which at first was less on imports
IN American ships than on imports in
foreign ships, was soon made higher on
'APS3so III %Oi OiS oiAiPo ci'&~* VA AA@
ports in American ships.
"That protected the owner against
foreign competition. By refusing
through our laws to register foreign
built ships as American ohe shipbulld-
es Of this country were fully pro-
sected
Protection for U. S. Ships
"ln addition to the protection owners
Ajoyed, already stated, the tonnage
tax was fixed at six cents per ton on
American-buiI., American-owned ships,
30 cents ton on built
!oreign-owned ships, and so cents
ton on all other ships. 1t was this pro-
tecticn that gave American ships the
carrying Of an average Of so per cent.
Or four-ffths, of the entire imports
md exports of the United States dur.
lng all Of the years preceding the
Civil War.
We .foo,i,lly adopted a policy of
gradually suspending our discrimina-
wsy shipping laws, and, as we did so,
We entered :nto terminable trade trea-
aes with many nations by which we
pound ourselves not to readopt this
oIa tariff protection policy for our
salps: 1t became necessary to repeal
Sr alter these trade treaties. The
Ffesldent was directed in the merchant
marine act of 1920 to notify foreign
aauons He refuses to obey.
The alteration Of the treaties would
aa' restore the tariff protection fully
. . American ships, but It would clear
sa ae way to Do SO. 1t will be extremely
;.a'eFesting % watch what Congress
gees, in view Of the Presidents re-
M ..sal to obey a law he helped to
uease, when Congress meets next De-
ssmber."