The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-06-24
Price Of
tonnage
AlMUST Be
/ REDUCED
Expert Says Loss Must Be
Faced by Taxpayers il Mer-
chant Marine Is Success
BY J. r. RICHARDSON

SAN FRANCISCO. June IA
loss of four billions of their five bh-
| lion dollar investment in the merch-
ant marine fleet must be faced by
! taxpayers OF the United States II
they expect to put the tonnage into
operation and successfully TO estao-
fish an American merchant marine.
The tonnage price must be reduced
4 by the shipping board
SAYS PRICE MUST
RE REDUCED
"A. These startling assertions were
A,ade today by Alexander J. Dicne.
tor of the Pacific Marine Review,
4teArded in shipping circles as an
authority on marine matters, as well
u Is one OF the closest students of prob
Flems facing the United states in its
sea competition. Ship operators OF
f4the Pacific coast echo his views
Recent declarations that the wood
4 en- fleet must be junked-with pos
&asible exception OF small number
INwas ampiified by DiclSie. who de-
i clares operators cannot afford to buy
shipping board tonnage at more than
q fifth Of its construction cost
British tonnage-steel tonnage.
~ell-constructed-is selling today at
DO to s35 a lightweight ton. some of
as low as SIS and lower said this
authority.
IA The shipping board at last ac-
counts was seeking to sell its ton
mage at SiS5 lightweight ton. How
can the private operators, with
I, money tight, with freight rates
down to rockbottom. with world
trade stagnated. afford to pay any
such price?
Elf the shipping board expects to
\. wove its tonnage, 1t will have to re-
nice its price. The cost. we are
I'd. Of that tonnage was around
% a lightweight ton II IL moves
u3s5 a lightweight ton the shipping
bard may consider itself fortunate
4 FLEET WAS BUILT IN
ENTRAVAGANT WAY
The tonnage of the American
fleet was built under stress Of war,
Il was built in an extravagant way
unavoidable. perhaps. because OF
conditions surrounding construction
ton for private operators to try to
operate tonnage profitably II 1t has
70 be bought at any such price as the
shipping board has asked
THE American people may expect
II they want a merchant marine. to
nay for it--and a merchant marine
means a great deal more than merely
y feet of vessels. A merchant ma
Srine liz not established in a day-and
VI does not make profits the day it
- established.
IF the shipping board had figured
these things out. II could have dis
posed of it's tonnage many months
So. g.. Oh portion Of it. at least. as
A private operators can absorb. 1t
could have told the people the truth.
and the people would have faced
Y the loss as Americans always face
oss-with courage and eauanimity.
when that loss Is known TO be newt
Fable.
4 PEOPLE
Al AUST LEARNING
"The people are just beginning to
II learn what shipping men have
known all along, ana what tne snip
ping board should have told them
long since-that the major portion
~ Of the fleet cost must be written off
as a war loss, and we must start
from the bottom We cannot in
N discriminatory dump millions Of ton
mage onto the seas, pound down rates
then expect to make money.
IF the shipping board continues
operating. the American merchant
marine will continue the most ex-
pensive luxury the American people
have ever supported. II the shipping
board expects to sell it's tonnage,
the American people must, as a re
suit of past policies Of the board, TO
some degree. take a $4,000, 900, 900
loss. Then they viii have to spend
some money"
Even more startling Is the further