New-York tribune., 1921-10-08
Shipping Board
Gets New Plan
For the Fleet
Capt. J. G. Ballinger Sug-
gests Losses Be Stopped
by Chartering Vessels on
a Profits haring Basis
Would Reduce Sale Price
Says Government Would
Save Millions on Craft
Now Tied Up at Docks

Chartering vessel at 81 a year, with
system Of profit sharing in which
the government would participate, has
been suggested to che Shipping Board
and the American Steamship Owners
Association by Captain J. G. Ballinger,
United States Coast Guard (retired).
Captain Ballinger said yesterday that he
had received replies from A. D. Lasker,
chairman Of the board, and Winthrop
L. Marvin, vice pr esident of the asso-
ciation, indicating that his recon-
nendations will receive serious con-
gideration.
The Ballinger plan in substance pro-
vides that the board shall put out Its
ships on bare-boat charter at nominal
sun, to enable private companies to
compete successfully with foreign ves-
sells. He says that it costs S1AO a
deadwcight ton g month to operate an
American steamer of approximat
5000 tons on a basis of so cents a
ton month bare-boat charter. This
compares with the time charter rate
on foreign ships, which includes the
wages and subsistence Of crews, from
95 cents TO $1.t4. II the board charters
ite ships at 81 year, Captain Bal
linger declares, this will enable the
American companies TO meet competi~
ton His plan reads as follows:
Cd Charter to responsible opera
tors on approved foreign trade routes
Shipping Board tonnage at 81 q year
ship, operator to assume responsibility
for voyage repairs only.
This will Immediately wipe out the
difference between tho operating cost
Of American tonnage and foreign ves-
sells, as it will reduce the operating
cost of American vessels to S1.4O minus
so cents, or to 80 cents deadweight
ton month, rs against 90 cents
deadwe ight ton q month for the for
cign vessel.
(2) Insurance to be carried by the
government on its equity in all yes
sells. Operators TO be permitted to in
sure their equity where acquired under
plan outlined in paragraph 5.
(3)) For purposes of insurance and
subsequeat purchase. the cost of tom
mage to be marked down to actual re-
placement values as at present for
new construction, less an amount rep
resenting depreciation on the vessels
20 be replaced, since such vessels were
built, say 5 per cent year. To be
fair to those who have purchased tom
mage from the government outright or
by partial payments, tonnage prices
should be readjusted to meet the
values above set forth.
(4) Operators to turn over to the
government 10 per cent OF any earn
ngs for an insurance and depreciation
fund.
(5) The remainder of the earnings
20 be applied as follows: One-half to
go to the operator. The remainder TO
revert to the government as its share
of the profits, unless the operator de-
stres to purchase the vessel, in which
case such part of the earnings is to be
applied as payment on the vessel.
(6) In any such arrangement a suf
fcient time should be allowed an oper-
stor to show profit, failing which the
charter should be cancelled and the
vessel withdrawn.
f) The government would immedi
stely be relieved from maintenance
charges on vessels now laid up, which
would be put in service, efecting a
saving Of millions of dollars annually
on this item alone.
~ The increase OF actively en-
ployed vessels would provide employ
ment for our seafarng population,
who will soon be forced into other
lines of employment if present condi-
tfons continue to prevail