The Washington herald., 1921-02-13
FORMER SHIPPING
BOARD HEAD GIVES
TESTIMONY HERE
Declares U. S. Can Build
Ships Comparable With
Any Nation.
NEED FOUR YEARS
Efficient Operation Will Come
With Private Owner
ship Ayerred.

snip AVerred.
All contractors who built ships
for the government during the war
drove hard bargains for high prof
its, Edward n Hurley, of Chicago,
former chairman of the Shipping
Board, testified before the Walsh
investigating committee yesterday.
Hurley's admission was made in
- response to a question by Chair
man Walsh, who asked:
Did you sec any effort on the
part Of the contractors to hold up
the government; did they say they
would not build ships if the price
were not raised? In other words,
did they drive for hard bargains
with the government"
Certainly" replied the fOrnner T
shipping Board head, who let most
Of the contracts. "An of them were
driving hard bargains. That was
up to any other group of business
men have ever dealt with
Would Charge on Loss.
Hurley said he thought some OF
the wood ships could be used sue
ccssfuIly in cOastwise trade, but
the others should be junked. He
was heartily in favor" of charging
OF as a war loss the cost Of the
junked wood vessels and the differ
euce between the construction cost
and the sale price of steel steam
ers- Nobody took the wood ships
seriously as a permanent program
he said.
Amy nation tha tcarries more
than so per cent OF its own exports
Is making a mistake" said the Tor
mer Shipping Board chairman IN
discussing the surplus of ships no"
afoat. in her best year. he con-
tinued, Great Britain carried only
81 per cent Of her own exports anc
only 20 per cent Of the outside ton
mage.
I'VE need a well-balanced fleet
saw to carry so or 55 per cent of oul
exports and come back with i'm
ports II we should have enough
ships to carry IS per cent of eN'
ports they would be coming back II
ballast.
TT is vital that we participate II
any international agreement OF
freight rates. Ship operators shoulC
have a reasonable return, but no
exorbitant profits"
Lauds Z. $. Built ship.
Hurley asserted the American
merchant ships, taken as a whole
are as good as any ships built b!
any nation"
He said, in reply to questions, h
had heard of defective work ol
huIIs in the shipbuilding company
Yards. but steps were taken to cor
rect this condition. He also knew
that a box OF rivets showing defect
EaS been sent to President Wilson
by a rireter.
After Lontracts for the wood ship
Wsrs let, he continued, it was fOun'
we were ing in the wrong direc
sion and e changed the entir
rlErr.
Hurley did not think it necessar,
to repeal all of the La Toilette sea
mems act to make successful com
petition possible. Labor cost
amour. to only 10 per cent of tn
tutaI expense Of operating ship
he sad.
Sartes His Objection.
Sis FonIy rS.rorg objection wa
shat = pprmls see rnen to leave on
safe when Il reaches a port and sig
sa another vessel. This should b
remedied at once, he urged. Il ar
an optimist with regard to Ou
merchant marine" he said. "Grea
Britain can't produce ships tOda
much cheaper than we can"
Four or five years will be neCes
sary to bring the American mer
chant marine up to efficient opera
tfon, Hurley believes. The ship:
must be gotten into private hand,
and operators and crews trained
The first thing to be done, he salc
is to get the prices down to fat
level.
Is a GHiEh Protectionist.T
Representative Connally, Demo
crat, of Texas, asked the former
Shipping Board chief how a ''ver,
high" tariff would affect the Amer
lean merchant marine.
Il am not asking this to injeC
politics into this hearing" Con
nally explained.
7 am a protectionist," said Hur
lev. Europe owes the United State
government S1O,OOO, 100000 and Ou
merchants $4,000, 100000 more. The
have no gold; how are they goin
to pay those loans and also buy tn
goods we want to sell them to kee
our institutions going?
The dye and chemical and othe
infant industries must be protecte
for a short period, say hve years.
Praises Sehwab's Work.
Hurley paid high tribute to tn
work Of Charles NJ. Schwab as d
rector general OF the EmergenC
Fleet Corporation. He said promise
had been made to the army to kee
il supplied with food and ammunt
ton and all those promises wer
kept In fact, he said, Schwab ha
done better than he promised in til
delivery of ships.
Many months afterward, while
was attending the peace conferenc
in Paris" said Hurley, 'I was tol
by Clemenceau that the appointneT
OF Schwab had frightened the Gel
mans, heartened the French and er
Unused the British. know that tn
appointment inspired the America
people.
Il never received such a recepti9
in my life as received in EngIanr
France and Italy, yes, and in Gel
many"