The New York herald., 1921-10-10
Bare Boat Charters.
A Plan 10 Make Shipping Board ves'
sells Attractive to Operators.

Copt0su y. u. SdMnQc', q. o. " W TO-
tired. IN the Nautical Gazette.
II has been shown that to operate an
American steamer Of 1896 dcadweight
tons. Hog Island type, the cost would be
about $I.40 deadweight ton a month
figured on a bare boat charter basis OF
SO cents q month deadweight ton. For
eign tonnage has been offered at from
$l.14 to az low as 95 cents q deadweight
ton a month on time charter. Such ng-
ures, IL approximately correct. show the
great handicap our steamship operators
are under In seeking the successful OPP
Grafton Of American shipping against
foreign competition.
In seeking to establish an American
merchant marine, tho Government must
forogo all ideas of profit, having In mind
the great object to be attained, which
is to transfer the Government owned ves-
sells to private ownership on permanent
basis at the earliest possible moment.
Having In mind this mission of the
Government as above outlined. would
suggest the following tentative plan:
]. Charter to responsible operators on
approved foreign trade routes Shipping
Board tonnage at 81 q year a ship,
operator to assume responsibility for
voyage repairs only.
This will immediately wipe out the diff
ference between the operating cost OF
American tonnage and foreign vessels.
as it will reduce the operating cost OF
American vessels to $1.40 minus SO
cents, or to 80 cents a deadweight ton a
month. as against S5 cents deadweight
ton month for the foreign vessel.
Q. Insurance to be carried by the Gov
ernment on its equity in all vessels.
Operators to be permitted to insure their
equity where acquired under plan out
lined In paragraph s.
3. For purposes Of insurance and SUBJ
sequent purchase. the cost Of tonnage to
be marked down to actual replacement
values as at present for new construc-
ton. less an amount representing de-
since such vessels were built, say s per
cent. year. To be fair to those who
have purchased tonnage from the Gov
ernment outright or by partial payments,
tonnage prices should be readjusted to
meet the values above set forth. This
would prevent former purchasers Of Gov
ernment vessels from having to meet
competition from vessels brought under
the favorable conditions suggested In
this plan.
4. Operators to turn over to the Gov
ernment 10 per cent. Of any earnings
for an insurance and depreciation fund.
s. The remainder Of the earnings to
be applied as follows: One-half to sc
to the operator. The remainder to re-
vert to the Government as it's share OF
the profits, unless the operator desires
to purchase the vessel. In which case
such part Of the earnings is to be ap-
piled as payment on the vessel. This
will make 1t an object for the operator
(1) to operate Government owned ves-
sells without any discrimination by hin,
in favor Of other vessels owned by him
and (2) to acquire the vessels by
gradual payments out OF their earnings
over number of years. In other words
the strongest premium possible will be
offered for efficient operation.
6. In any such arrangement sufn.
cient time should be allowed an operator
to show a profit. failing which the char.
ter should be cancelled and the vesse,
withdrawn.