New-York tribune., 1921-12-12
Shipping Board
Outlines Great
Drop in Trade
Annual Report Shows 12I
Vessels, Valued at 81 Mil
lions, Returned by Buy
ers; Depression Cuts Assets
Rebates on Foreign Ships
Rate Conferences Supported
in Effort to Prevent Cut
throat Ship Competition

The disastrous effect of the decline
in shipping upon the assets Of the
government fleet and upon it's COM
mercial operations is outlined In the
annual report of the Shipping Board
fled with Congress. Giving the situa-
ton as it existed at the end of the
fiscal year, June 30 1921. the report
shows that while the board owned and
controlled 1,740 vessels on that date,
the number tied up was 987, or 48 per
cent of the total. 1T the END of the
preceding fiscal year only 10 per cent
of the ships were idle. 1t is also
stated that during the year 121 vessels,
sold for $87,885.000. were returned to
the board by purchasers Only ST.
100000 in cash had been paid on these
ships.
The assets of the board are given as
$3,07o599.51S, but the consolidated
balance sheet shows that this total is
reached largely by adding the expendi-
lures of the government for various
forms of property rather than by esti-
mating the market value to-day. The
principal item is $2,403 $50 511 spent on
purchases, construction and recondi
tioning of vessels. Plants and prop
erty are listed at $83,S0s,037, housing
projects and transportation facilities
at $17,878703, making total capital as
sets Of $2,505 ,347,25s. Current assets
include $34047,304 general cash on
hand and $102,860,374 for materials
and supplies.
Shrinkage Anticipated
1t is admitted in the report that
there will be considerable shrinkage
in the following items: Accounts re-
ceivable, 1884 800, ,401; notes receivable,
S78,252,239; advances $31 1926, and
investments in housing, ETC., SS4,655,-
663
In transmitting the report to Con-
gress the present board, headed by AL
bert D. Lasker, chairman, disclaims re-
sponsibility for the results announced
by the previous board. His letter,
dated December /, says:
"It will be noted that the Shipping
Board, as at present organized, had
been in Office during but little more
than two weeks of the total period COW
cred by this report hence this report
covers none of the activities of the
prepared by employees of the old
board, covering the years work Of that
board, and many Of the policies re-
ferred to are not the policies of the
pre- sent Shipping Board, or have been
modified to a considerable extent"
Insurance Plan Lauded
The report gives full analysis of
the marine insurance situation, citing
the heavier charges imposed upon goods
carried in government vessels, and also
the steps taken to relieve private COM
panies of tax burdens. The staten ent
surance syndicates has been successful
and that reports indicate that the or
ganizaton of the syndicates has re-
suited in a greater increase of hull in
surance being placed with American
companies than ever before"
Many forms Of discrimination against
American vessels in all parts Of the
world have been found by the board,
acting under the provisions Of Section
26 Of the shipping act.
"a frequent form of discrimination
in this field" the report states, results
from conference agreements which eX-
ist between foreign line compauie $
operating between foreign ports, from
which American vessels are frequently
excluded, and which, through a system
of deferred rebates that deprive United
States vessels from participating in the
commerce between such foreign ports,
also deprive them to a great extent
from commerce between such ports and
American ports. This is accomplished
by these foreign competing companies
through contracts made by them with
shippers, providing for rebate at the
end of the year on freight movements