Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1921-08-11
THE U. 8. SHIPPING BOARD
Continued from first page)

the coming year, it is with the hope
that from that sum we will be able
to pay not only the losses of opera
tions, but also to settle finally part
of the claims and the law suits pend
ing against the Shipping Board.
These latter amount to more than
$500, 100000 themselves, but we an
ticipate settling them for $50 on the
$1.O0, because many of them are
padded Congress already has ap-
Ipropriated $25,OO0,O00 to finish the
construction of ships. 1t is esti-
mated operations will lose $780,
100000. The reason the loss from
Operations will be so great, in spite
of the efficiencies and economies we
will introduce, is that the first six
months of the fiscal year just closed
were very good commercially. The
last six months were poor. Most
people are looking forward during
the twelve months we have just en-.
tered upon to dull times; so that we
may expect hard shedding during
that period. Moreover, it will be
several months until the changes Of
policies we hope to put into effect
begin to reflect or even to become
active, and we are compelled to &C
on in the very incompetent way the
boats are being operated while we
are moving to introduce business me
thods and reforms.
The boats are being operated to
day in the following shocking man
ner: an operating company is al
located a number of boats. They
are allowed a commission of 5 PEE
cent on gross revenue. The boa
can lose all kinds of money, the tai
payers pay the losses, but the op
orator makes money just the same
because he gets his per cent com
mission.
I have actually heard of a boa
turning back in midsea to take
cargo on which the operator mad
$400 and the government lost $500
mad this boat was half way acros
the China Sea when they turned he
back to get that cargo at Manila. l
is nobody's fault that the presen
system prevails. These boats wer
built when American operators ha
no experience and system had t
, be developed to get them moving. A
long as times were fine the syster
did not work out so badly, but any
, body can see that system whereof
the operator has nothing at stake
whereby the government loses and h
, wins, is system that makes for in
; efficiency. We must grin and bea
z that system for some months
come because to establish such
charter system as will be develope
by the new vice presidents of til
present board is a matter almost g
difficult, in a minor way, as it wa
! to negotiate the peace treaty at Vel
sailles. It is highly technic;
;. matter which must be approache
with the greatest care.
t To show the condition of incomp,
d tence that exists, the present bas
). of doing business went into effect
March, 1920 and out of 5000 vo!
ages made, only 5000 are accounte
c for to date
The President has inherited in Il
1 Shipping Board the most difficu
d business problem ever given to
l. President to work out. Every col
/ dition surrounding it was sick. B
|. ginning with world trade condition
h which are the worst ever known, al
coming down to the ships themselv
# sickness prevails. Such ships
|. they had ways to build were la
n down when the war started. MAJ
l. of them do not fit into the trade al
= are expensive to operate. II
= carrying business of the world
sick, and the morals of the men {
l. the boats, because of all of the
'r conditions, is likewise pretty sic
No matter how quickly and eff
N GENTLY the new Board and it's of
ces function the flood tide of 10
er from the policies of the past cam
be stopped for months to come, a
IS the deficit for the coming year W
I'd reflect the sad history of the pa
% rather than the reorganized effort
ut policies inaugurated by the NJ
Id Board. However, the new Shippi
Board is not disheartened. Stal
IN ling as these figures have given a
n they prove to US that with patien
n something can be done, and out
OF this wreck, Phoenix like from
ashes, a real American Mercha
nt can arise that will be worth all t
penalty we have suffered, and VIII
prosperity comes to the world O
nc Marine will be the greatest insl
z ance that America will get its
share.
Cat this point the Chairman
ed tated the tabulated statement
IL tached hereto.)
st l will say this as to the wood
n ships had cost $240,OOO,OOO. T
er' is incorrect. l failed to include I
n cost of uncompleted ships of t
ed type. The total loss on wooG
ships, including those uncomplet
nd is $313,0O0,000. / was $73,OOO,(
on shy. These vessels are practica
worthless. We are making an
eo ventory of the assets as fast as
20 can and when that inventory is co
ice pleted we will know that the wooc
fleet is worth and of course we v
hu know the value then of all other v
eh sells and properties as well. Besi
l. 1s.L