New-York tribune., 1921-01-13
Depression i'm
Shipping Felt
By Insurance
Some Of Recently Organized
Foreign Marine Concerns
Likely to Stop Writing of
Risks. 1t Is Declared
Tied.Up Ships Increasing
Government Is Expecting to
Withdraw a Million Tons
More in the Near Future

Depressed conditions in the shipping
and shipbuilding industries, now gen
eral throughout the world. are reported
10 be beginning to tell on the business
Of foreign marine insurance companies
English pub ications state that at least
two British companies. both of COM
paratively recent origin, will stop
writing marine risks.
In both cases, it is stated, the with
dawal is voluntary. and there is No
suggestion that either concern will be
unsbe to meet its liabilities. Con-
siderable significance, however, is at
tached in marine circles to the de-
velopment. Conditions in the cargo
and total loss markets have been bad
for some time, and it is said to be
probable that other retirements and
some amalgamations will be made
abroad before long.
One Of the results Of the decline in
the activity of shipping has, of course,
been q lessening of the amount Of
marine insurance, and the newer COM
panies are feeling the results more
than the old established ones.
Many Ships Tied Up
An indication of conditions in the
ocean freight markets is furnished by
the statement of the Shipping Board
that vessels aggregating more than
100000 deadwelght tons have been
laid up under the orders of that BODY
and { at additions of a million dead
weight tons are expected
Under these circumstances some
shipping men say, even at the proposed
selling rate of $3.50 per deadweight
ton which the Shipping Board has been
urged to place on its steel carg
steamers, the board would be unable
dispose OF the bulk of the tonnage o.,
its hands al the present time. Pur-
chasers in the majority of instances
it is pointed out. would be unable t.
secure carg es for the new vesse S. ana
the heavy cost Ct upkeep would i'm
pose financial burden which many of
smaller operating concerns could
carry
The shirring Board, however. is un-
cerstood to be strongly opposed to the
p'fh 10 reduce prices to such low fig
ure. Inc $3.50 rate would represent
only about third of the cost of CON
struction and is about 500 a ton under
.Ie present range of prices asked by
the board. 1t has been intimated III ~
REDUCTION to S125 a ton Is contem-
plated, but shipping men do not he
lieve that marke. could he fonnd for
any appreciable amount of tonnage at
more than 500 ton for some time
u me. md say that is r u.
resa in tse sac of only the best types
OF vessels Feld by the board.
May Get Back Tonnage
In connection with the pan to max,
tue so'.vo per ton rate Apply to al
esse previous y purchased from tn,
loard. 1t is pointed out that in som,
cases operating companies have negoti
sted for ships, paid in a portion Of tn,
purchase price and then been -unab,
70 make further payments The appli
cation Of the low price generally, it i
said, would enable these companies t.
secure tonnage which had been turne,
back to the Shipping Board.
AS many as 400 Of the boards vessel
may be withdrawn from service an,
tied up within the next few month
according to the boards own estimates
in addition to the 208 steel ships ant
number of wooden ships now laid ur
oiicIals say that the active governmen
heet consisting of 927 steel cargo an.
passenger ships operating from tn
United States to foreign ports. 70 tanI
steamers, 62 ships in the coastwis,
srade and II vessels operating betwee,
South America and foreign ports. az
gFegating S,25o,o00 tons, will be re
aQced by million tnns in six months
Other Nations Affected
The board, however, claims that com
pared with the shipping situation fac
ing other nations the present condi
s'on Of the government feet Is no
rad. OF the 20S steel vessels now tie,
up. It Is said that $50 are small coal
burning steamers averaging only abou
oro00 deadweig. tons. which are no
sultable for al! trade routes.
IN addition, officials assert, there ar
Tot comparatively as many America
Tesseis tied up as there are of ship
hying the flags Of Japan, Great Britai
aud other leading maritime nations.
According to Admiral Benson, chair
nan Of the Shipping Board, witadrawa
oi government ships from service doe
not mean any reduction in the numbe
ei trade routes being developed by tn
oesfd. All the established routes ar
being continued, he says, although 4
soms cases it has been found advisabi
% reduce the tonnage allotted variou
routes until conditions in the ocean