The New York herald., 1921-12-26
SAYS EXCESS SHIPS
| WILL Be ABSORBED
Normal Trade to Take All Ton
mage Not Strapped, Asserts
Bank Booklet.

The R'esent apparent excess in the
worlds Merchant tonnage would disap-
pear almost entirely with a return to
normal of international trade, says a
bookle. On THE Shipping Board and
Our Merchant Marine" issued by the
Mechanics and Metals National Bank.
Steel ocean going steamships of the
principal maritime Powers have in
creased from 42.514,000 gross tons in
1914 to 54.217.ooo tons this year, whereas
world commerce has shown no such I'd
vance. The current excess is about
equivalent to the increased ship ca
pacity.
Two points are, however. frequently
overlooked in considering these figures
OF world tonnage" said the booklet. I'm
the frst place, approximately one-quar-
ter of this increase consists of oil tank
ships In 1914 vesseis of this type
numbered 3s5, with a gross tonnage OF
1,479,000; for 1921 the corresponding
fgures are SCI, or 4,4i9.00o tons About
nalf of this tanker tonnage is American.
Second. the present figures include a
great number of vessels variously esti-
mated by shipping authorities at from
1000, 900 to 5000. 900 tons. which must be
scrapped in the course of the next few
years. Ship tonnage in existence during
ihe war was driven hard, there was op-
5ortunity only for the most perfunctoTy
mainterance and replacement and some
pr it has become obsolete. with the result
That a considerable part OF this tonnage
gannot continue to survive in comreti-
ZION with the newer and more efficient
,hips In so far, therefore. as the future
Is concerned there should not be any
Dangerous excess of tonnage under a re-
turn to normal. even though a new
normal. Of world trade"
The booklet treats in detail of ship
ping legislation by Congress and re-
views the functions and the problems of
the Shipping Board. The assumption is
made, II ia said. Justified by the weight
/. of experienced opinion. that merchant
marine capable OF carrying fully half of
our international trade in competition
with the fleets of other countries is a
national requirement and an asset of
tremendous tangible and intangible
value. And that, weighing the advan-
tages and disadvantages. there are no
insuperable obstacles to the success of
our feet in world competition
I'm view of the reaction on world ship
ping. it will take considerable time for
private enterprise to absorb the i'm
rnense volume bf shipping in the Gov
errments hands. irrespective of what
amount of the fleets cost Is writes off
20 war expense. says the booklet Mean
while there are three methods under
which tonnage can be chartered that in
greater or less degree relieve the Gov
ernment of the details and the financial
burden OF direct operations.
Bare boat charters are almost as diff
cult to arrange under present conditions
las are sales. while If the charter rates
arc set low enough to attract charterers
NOW there would not be the incentive to
purchase. A second method would pro-
.Vide for partnership basis. on which
.both the Shipping Board and the oper-
~ ting company would have something at
stake. the charterer standing his share
sof any losses and participating proper
{tionately in any profits.
( The present ALLEGATION agreement,
.while universally denounced as uneco-
snomical. nevertheless appears to be the
.only method that will keep many of
sths ships operating at present. espe-
.cia1iy the passenger liners engaged in
developing new routes for American
.shipe. 4.