Evening star., 1921-05-06
S8()D,0)0,OOO[0SS
|. ON SHIPS CHARGED
J. A. Farrell, Steel Man, Says
u. S. Should Have Sold
After ArmistiCe.
Ry the Associafed Press.

BY the Associated Press.
CLEVELAND. Ohio, May 6.-ln an
address this morning on maritime
policy at the National Foreign Iraoe
Council convention James A. Farreil
of New York. chairman of the councii
and president of the United states
Steel Corporation, told the delegates
the future of American merchant ma
rinc is at stake; that the government
lost $4,000 900 by not selling its
merchant fleet when the armstlce
was signed; suggested an interna-
tional conference of maritime nations
TO stabilize the shipping situation;
recommended the charterinK OF the
government feet TO individuaIs. eth
er on a bare boat basis or on time
cargoes and advocated revision OF
American shipping laws.
Marines Future Mt Stake.
Mr.: Farrell spoke, in part, as FOL
lows:
''The future of our merchant marine
development is at stake and it's pres
ent position is the outcome Of hap
ha zardf efforts to deal with problem
the requirements of which necessi-
tated from the beginning a settled
policy and a well defined purpose. 1t
is the duty of all Americans TO pre-
vent the elimination Of our overseas
fleet from the worlds carrying trade
THE signing of the armistice on
November II. 1918. found us with
fleet Of 16.000.00O deadweight tons
built and under contract as the re-
suit of the dictates of military ne
armistice to induce the Shipping
board to sell a large portion Of the
fleet to foreigners. For period ex-
tending into 1919, an opportunity ex.
listed to dispose of large portion of
the fleet at prices bearing a falr re,
Iation to a moderately deprecated
cost. Not taking advantage OF this
opportunity. the government missed
it's market and it is estimated lost
a chance to realize at least $780,
100000. being the difference in the
market value of the tonnage Of steel
ships which could have been sold at
that time and the appraised value
today.
Face n Sacrifice.
ITO sell the feet. whicb cost the
taxpayers of the United States more
| than three billion dollars. without
! legislation revising our navigation
laws. is Impossible. 1t is questions
BILE whether, under present cond1-
tions. any considerable tonnage could
! be sold except at a sacrifice which is
rot warranted.
SpTlOuS COnSlOeTdllon HluSt De
given to the problem of maintaining
| our merchant marine. Even with a
| temporary Improvement in ocean
| freights the worlds idle tonnage
! cannot be absorbed under three
years. All maritime nations are af-
| fected. Approximately 100000 tons
| Of the world carrying capacity Is
laid up out of total of 60.000000
| tons (of which 100000 tons is still
under construction.
| 1T might serve useful purpose
to ourselves and to the world to
bring about an international con-
! ference OF the maritime nations to
stabilize the shipping industry on the
theory that one part of the world
cannot be crippled economically while
! the rest is prosperous
Policy Impraeticable.
ut Is time to recognize the fact
that the policy Of the Shipping Board
| since it's inception of endeavoring to
build up trade routes from every
Atlantic gulf and Pacific port TO
| practically every port in the world.
! is expensive and impracticable.
| Until trade revives and opportunity
exists for obtaining n fair sale price Tor
the feet an early retirement OF the
| Shipping Board and liquidation OF Its
, shipping business seems impracticaole.
| A partial solution OF one OF the difrlcul
ties confronting the Shipping Board is
-
| ton of their tonnage and in line with
the slogan Less government in business
more business in government" withdra "
from all but supervisory activity by
cha rtering the steamers to reputable and
exnerienced operators. either on a bare
boat basis or on time charters, allowing
the charterers the option OF purchasing
the steamers when conditions improve.
Effects on Great Lakes.
1.-THE main factor in determining
whether we can compete successfully
with foreign tonnage lies largely in oui
shipping laws The latter are not only
strangling our oceangoing shipping. but
are affecting the carriers on the great
lakes.
"Our ships must be managed by com
netent crews sufficient in number to op-
crate economically and safely anc
American seamen should enjoy the best
possible conditions. receiving in wages
reasonable return for service performed
But IL must be equally obvious that pro-
visions Of employment which require
American vessels to maintain larger
crews-65 per cent Of whom must be
licensed mcmillan is the case with for
eiRn vessels and to carry as the engine
room crew 80 per cent more men tnan
the steamships Of any other nation. noe.
CONTINUED on Page 2. Column 3D.