New-York tribune., 1921-01-23
Isb Fear
|n;saster for
Small Shipping
$. Recently Established
Concerns Are Not Fixed
: weather Conditions as
:, Present Constituted
/ .rser Liner Better OFF
~. offered for Sale With
drawn Because of the
cr,allness of Bids Made

Su,allness OIL bIds Made
r,a. American marine interests
4 ,a;nting out that this country is
.,estest sufferer in the present
...s depression in shipping and that
.-.t Britain is far better situated be-
~. af the much lower capital and
..y..ius costs of British vessels, Eng
tsa publications are declaring that
III. is impending in the British ship
!. industry and that the situation
,r.,..n. to become disastrous for the
~.,,., and more recently established
puterns.
| These companies. 1t Is declared. have
H., unabls to accumulate sufficient
.,.,vs. 10 weather any long period of
,.,,..s;on or to mark the values of
...r .onnage down to point at which
esa b. operated proftably under ex-
aias freight rates.
Leading shipping authority is
nased BY The London Daily Telegraph
!. SEATING that firms which started in
ls,ip.ss within the last two or three
v.srs are in a precarious position. The
,ser lines, which before the war had
mt.en down their tonnage, are in
such better shape. it is stated.
Little Bid for Vessels
British ships have been selling for
|. much as $40 to $50 a deadweight
sr within the last two years, it is
oiuted out, while recently new 1000
- vessel was put up at auction in
london and withdrawn because the
klshest bid for her was f8 los per ton.
The average life OF q ship is twenty
lnrs. and in this time she must not
; sIy earn her own living but enough
kr ship to replace her when she is
bihdrawn from service.
II Tor an individual ship carrying the
slues Of the last few years this would
3 sheer comm ercial impossibility,
bys The Telegraph. She cannot earn
nough money to pay for her running
\ Expenses and provide for her own de-
Rsciaton account when she has cost
70 per ton"
Fluctuation in Values
In accordance with it's annual custom,
British shipping publication Fair
4 ty publishes diagram showing the
Ectuations which have taken place
hce 1908 in the value of a new,
Fady. single-deck steamer with dead
teight carrying capacity of about $500
sns. Il shows that at the end O 1898
be value was about $4,000. It reached
Ills lowest point, $4,000 Cor Ga los per
annl, in 1908. In 1914 it stood at s42,.
IE0, and during the war it rose to
3aSl5G0. After the war there was a
1furthsr rapid rise, till at the beginning
1t last year the value was e232,5O0, or
~ per ton. Then there was sharp
4 and at the end of the year it was
$1,000, or f14 per ton.
In an accompanying article Fairplay
9elnts out that until the outbreak of
ae war the value of ships was the
.me all over the world, but since then
PIP owners have not been able to sell
sir ships to foreigners without the
assent Of the government, which is
most invariably withheld. . Referring
the fall in values last year, Fairplay
NFs:
/ "A year ago 7,5o0-tonner was worth
- per ton If sold to British owners
Ned s45 per ton could have been OBJ
ksec from foreigners, but the British
1aIpping controller would not give his
ansent to the sale. While during the
par 1919 the appreciation in shipping
niues for the first six months was
loout "a per cent, and in the twelve
Fnentns about AZ per cent, we have to
Sseord this year a depreciation in
Ialues as compared with January 1,
ssO. Of 2S per cent in the first six
acnths and over so per cent by the
Iad Of the year.
! Decline Is Unprecedented
Never in the history of shipping have
Nues fallen to such an extent;s but it
= been generally recognized by ex-
nsnced ship owners that such un-
sar-ot prices having been reached,
nen tine slump did come the fall must
of record character. In 1900, which
% considered the boom year for ship
eg: the value of a 7,500-tonner
eaehej s60,630, but it took about five
ss1s 1of pI1ces 20 tAi bO per cent.
AIS year 1t has taken less than six
lsentns from the highest figures
1xaehed.
y toe value Of steamer were based
\ ner earning capacity at the present
Lme values would be negligible, be-
sase owners are laying boats up ow-
s % the impossibility Of securing any
Mehs which will cover expenses, but
sased On cost Of building they would
Pa. least 100 per cent higher"