Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-05-06
SAYS U. S. LOST
/ 00,oO0,000.ON
MERCHANT FLEET
Wilson Charges Producers
Use Unscientifc Market
ing Methods.

ing Methods.
Cleveland, Ohio. May Elm an ad-
dress this morning On american Mar
lt1me Policy" at the National Foreign
Trade Council convention. James A.
Farrell of New York. chairman of the
council and president of the United
States Steel Corporation, told the
delegates the future of American
merchant marine development is at
stake. that the government lost $780,
OOO,0O by not selling it's merchant
fleet when the arr,istice was signed,
suggested an international conference
OF maritime nations to stabilize the
shipping situation. recommended the
chartering Of the government fleet to
individuals either on bare boat basis
or on time cargoes and advocated
a revision of American shipping laws.
His Address.
Mr.. Farrell said:
The future of our merchant ma
rine development is at stake and its
present position is the outcome or
haphazard efforts to deal with a prob
lem, the requirements of which neces-
STATED from the beginning a settled
policy and we'll 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 a
fleet of 100000 deadweight tons,
built and under contract, as the re-
suit of the dictates of military ncces-
sity Efforts were made, after the
armistice, to induce the shipping
board to sell a large portion of the
tn
tending into 1919 an opportunity cx-
listed to dispose of a large portion of
the fleet at prices bearing a fair rela-
tion to a moderately deprecated cost.
Not taxing advantage of this oppor-
tunity, the government missed its mar
ket and, it is estimated, lost a chance
to realize at least $500, 900. 900, 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.
Would Cost Great Sum.
ITO steel the fleet, which cost the
taxpayers of the United States more
than three billion dollars. without leg
islation revising our navigation laws
is impossible 1t is questionable
whether under present conditions any
considerable tonnage could be sold
except at a sacrifice which is not
warranted.
Serious consideration must be Civ.
en- to the problem of maintaining oul
merchant marine. Even with a tenn
porary improvement in ocean freights
the worlds tonnage cannot be alb.
! sorbed under three years. All mari
time nations are affected. Approx
mately seven million tons tSaof thu
worlds carrying capacity is laid ul
out Of total of sixty million tons
! (of which five million tons is still
under construction.) e
TT might serve a useful purpose
| to ourselves and to the world to brint
about an international conference o
the maritime nations to stabilize thu
one part OF the world cannot be Grip
pied economically while the rest il
! prosperous.
1T is time to recognize the fac
that the policy of the shipping boart
since its inception of endeavoring t
build up trade routes from every At
lantic. Gulf and Pacific port to prac
| tically every port in the world. il
| expensive, and impracticable.
Until trade reyives and opportu
nifty exists for obtaining fair sale
price for the fleet. an early retire
ment of the shipping board and Liq
|
impracticable.
! "A partial solution Of one of thu
! difficulties confronting the shipping
| board is to continue to lay up a con
siderable portion of their tonnage 'ant
! in line with the slogan. less govern
ment in business: more business il
! government withdraw from all bu
! supervisory activity by charterins th'
! steamers to reputable and experienced
80 l. tN<,~ tx,r t,,t.
; or on time charters allowing the
cr.~>arers the option of purchasin:
! the steamers when conditions i'm
! prove.
'The main factor in determinin.
whether we can compete successful.
with foreign tonnage lies largely il
our shipping laws. The latter are no
only strangling our ocean going ship:
but are affecting the carriers on TIL
great lakes. Our ships must b.
manned by competent crews ufficien
in number to operate economicall, II,
and safely and American seamcl
should enjoy the best possible condi
tions, receiving in wages reasonabl
return for service performed. But
must be equally obvious that provi
, sions of law which require American
vessels to maintain larger crews-6
per cent of whom must be licensei
men-than is the Gaze with foreigl
vessels and to carry as the engin
crews 80 per cent more men than tn
steamships of any other nation. nee
essarily subjects American vessels t
serious disadvantage. estimated at
per cent on the capital investment
The compulsory advance in each for
elgn port of call of half wages earne'
seriously affects the working of ship
and leads to expensive delays. TIL
burden of these should be remove,
in the interests of the seamcn as wei
as the ship owners.
''The bare boat charter basis will
an early revision of our navigation
laws-the latter an urgent require
ment Of the present situation-migh
be called a plan to enable shipping
people t5 send our ships to sea upol
! terms of equality
INVITATION OF
lIIMc DECADE