New-York tribune., 1921-01-11
Board Urged
To Sell Ships at
$3.50 a Ton
Price so Per Cent Over the
Pre-War Average Cost of
Steel Cargo Tonnage Is
the Figure Now Advocated
Limited Market in Sight
Resolutions Presented to
Commissioners; To Pro-
tect Former Purchasers

A proposal that the Shipping Board
sell its holdings of steel cargo vessels
st$S7.50 per deadweight tons has been
plsced before the board as the result
Of an investigation of the situation in
regard to shipbuilding conditions and
h market values Of tonnage, presented by
Guy D. Goff, member of the board,
IN collaboration with Martin j. Gillen,
b former member of the War Industries
board and special assistant to Chair
men Payne and Benson of the Shipping
Board, and L. L. Summers, former
Hmember of the War Industries Board.
In working out plan to establish
the basic principles controlling the es-
Establishment Of values Of the Shipping
Boards vessels Mr.. Gillen made de-
Htailed study of prices now and before
the war. The general conclusions, as
Embodied in a set Of resolutions pre-
sented to the Shipping Board and
bending before that body are:
"That the top price of the steel cargo
boats owned by che Shipping Board be
3fxed at s45 a deadweight ton, which
was the peace-time price of construc-
,ion plus an increase of so per cent
thereof, as the base price for the new
steel cargo boats, with the same dit-
kerential ratio for efficiency in service,
machinery and equipment that has al
keadv been established by the board,
with an allowance of per cent de-
hreciation per annum for the time that
khe boats have been in the water.
To Protect Purchasers
THAT all contracts made with pioneer
purchasers of Shipping Board boats
be recalled and the purchase price be
rewritten on the boats of the new
prices as established; that all profit
made on those boats while in the hands
Of the pioneer purchasers be taken by
ihe government; that they be paid
service charge for the management OF
the boats while in their charge, tie
same as managing operators, on the
basis of MO agreement No. 4, and that
interest charges incurred or paid be
adjusted in consonance with the new
prices established.
THAT these new prices be effective
as of February 8, 1921, so that Con-
gress may have an opportunity to have
full knowledge Of the methods and rea-
sons for the fixing of the prices and
may, if they SO desire, dissent there
rom"
The proposed price of $3.50 per ton
COMPARES with the boards present
scale of $3.50 to 1856, in connection
with which the report points out that
there is a limited market for tonnage
.o-day it being declared that there is
sufficient steel cargo tonnage IN tne
world to take care Of all the needs OF
world transportation, the present total
being equal to 100 per cent of the 1915
world figure.
Tonnage Market Limited
The market into which the Shipping
Board can 90 for purchasers, it is SAID
is practically limited at the presen'
time TO re corporations, known as
he operating managers. great mum,
Der Of the original privately owned
shipping corporations who own their
own boats. Il is declared, have already
made pioneer purchases from the Ship
ping Board and ruined their base capl-
tai investment and financial crealc
Through the purchases made.
"The toll of receiverships whicn IS
lbefore us, of some sixty sales out OF
approximately 200 sales. and the
fknown difficult position OF every one
lof the other pioneer purchasers
lis stated. "means that the government
has killed of it's prospects tor future
sales and anv opportunity it might have
IA the American investment market
unless it readjusts these sales on an
equitable basis"
In a comparison of price conditions
to-day with those before the war It
Is declared that while the prices OF
base products, generally speaking, are
down to 1914 levels this is not true
of manufactured products.
Basis of Price-Fixing
TN fairness to the pioneer purchas-
fers and the future purchasers" says
Mr.. Gillen, az almost seems as II we
should offer our ships to them on the
ossi. Of the 1e10-l913 period, but so
hat no question can be raised sug-
sess that ne assume, in the fYe- year
var period. that the standard OF llv-
ing OF thig country was lifted 10 per
cent year total Of so per cent in
i've yearE-a terrific advance-and
Rat II will be maintained at that point
isr the next twenty years, during the
NE Of these boats.
In word, that we ark the pur-
eaasers, past and future, to absorb
nat advance OF so per cent and that
ss place the price Of our ships at an
sfvsnce Of so per cent Of the 19l0-19l3
set, Which approximated s45 per dead
sslght TOM
One Of the reasons why present
saipouilding prices are high, it ID
Asssd, is the fact shat steel and coke
2s7e not az yet been fully liquidated
g price. The further liquidation OF
asM prices, however, must come
saeruy. 1t is claimed.