New-York tribune., 1921-04-22
Millions for
Ship Board in
Bare Boat Plan
Charter System in Place
Of Al'ocation Will Stop
Losses iii Operation and
Check Tonnage Surplus
Supply Based on Demand
Operators' Association Not
in Accord With Scheme
Advanced by Ship Owners

Orposition to the plsn to have the
ss,nning Beard adopt tho bare boat
charter system for its vessels has been
expressed by the United States Ship Op-
srstors' Association through its presi-
dent Charles II. Potter, who is quoted
As Stating that the plan recommended d
yacommittcc of the American Steam
ship Owners Association, headed by
John r. Gordon. traffic manager of
the Union Sulphur Company, 3njght
force the tying MP of the great ma
ierity Of the Shipping Boards vessels.
Under the present system of alloca-
ticn the board is paying the operators
Of its vessels comm lssion for hand
ling the tonnage. Under the bare boat
man the board would charter its yes
sells at fixed fee per ton per month.
Millions of Savings Seen
Under the ALLEGATION plan the board
assumes all risks of loss and no capi-
,al investment is required on the part
Of the operator. Many of the concerns
operating ships on this basis have no
tonnage Of their own and have been
formed simply for the purpose of run
ming the boards ships. In addition to
the losses of millions of dollars in
cured by the government from the
operation of these vessels, the alloca-
.cn system has required the board to
maintain large personnel to handle
the accounts and details of the system.
Adoption of a bare boat plan, it is
pointed out, will eliminate losses on
the part of the Shipping Board from
operation and will do away with millions
lnlI cf I
by eliminating most of the personnel
Of the division of operations and the
romptroller's office.
In place of a continuance of the
feayy losses on its vessels, the board.
Under the new plan. will be assured Of
N income from them. With the char
operation more efficient handlinp Of
the vessels is assured, with beneficial
effect in the development of the Afneri-
ean merchant marine.
Would Improve Conditions
As tho United States Ship Oner
itcrs' Association indicates, abortion
sf the hare boat charter plan will un-
laubtcdly result in decrease in the
mount of Shipping Board tonnage
nder operation. The majority Of
5irowners, however. regard this as
1srtan TO effect a marked improve
sent over present conditions. Chiefly
trough the boards policy of alocat-
1g vessels on a liberal scale nearly
all the trade routes from the United
States are overtonnaged, with the re-
mlt that the supply Of cargo is much
30 small to go around on an equitable
asls, and many vessels are sailing
With only few hundred tons of cargo.
Reduction of the volume of tonnage in
opsration will mean improved condi-
tons for operators of the 5000 900
sros tons of privately owned Ameri-
can vessels registered for the foreign
trade in the shape of "a better distri-
BUTTON of cargo.
Under the bare boat system, it is
ponted out. vessels will be chartered
IN proportion to the actual carrying
rsquirements, operators will be en-
ablsd to make profits, and the cfi
eency of the whole body of American
Mlpplng will be improved In addi-
ton, the Shipping Board will receive
profit from it's vessels
According to statement issued by
the National Merchant Marine Associ-
allon, Admiral Benson has announced
his approval of bare boat charter
plan with regard to the governments
cargo vessels, but favors leaving the
opposition of the passenger ships to
the new board.