The New York herald., 1922-11-22

last February I reported TO you reia-
tive to the American Merchant Marine.
and recommended legislation which
the Executive branch of the Govern
ment deemed essential TO promote our
merchant marine and with ii our ma
tional welfare. Other problems were
pressing and other questions pending,
and for one reason or another. which
need not be recited. the suggested
legislation has not progressed beyond
favorable recommendation by the
House Committee. The Committee
has given the question a full and
painstakirg inquiry and study. and
hope that Its favorable report speed
ily will be given the force Of law.
1t will be helpful In clearing the at
mosphere If We start with the frank
recognition OF divided opinion and de-
termlned opposition. 1t Is no new ex-
perience. Like proposals have divided
the Congress on various previous oc-
casions. Perhaps more resolute
hostility never was manifest before.
and am very sure the need for de-
clsive action-decisive. favorable ac-
tion-never was so urgent before.
We are not now dealing with poll
icy founded on theory we have
problem which Is one of grim actual
ity. We are facing insistent condi-
tions, out of which will come either
additional and staggering government
losses and national impotence on the
seas or else the unfurling OF the nag
on great American merchant marine
commensurate with our commercial
Importance to serve as carrier OF our
cargoes In peace and meet the neces-
stiles of our defense In war. There is
wi
the relation of merchant marine to
our national defense. 1t is enough to
recall that we entered the world war
almost wholly dependent on our Allies
for transportation by sea. We ex-
pended approximately three billions,
feverishly. extravagantly. wastefully
and impractically. Out of our eager
ness to make I'D for the omissions OF
peace and to meet the war emergency
we builded and otherwise acquired the
vast merchant fleet which the Gov
ernment owns to-day.
In the simplest way can say It.
our immediate problem Is not 60
build and support a merchant ship
ping, which / hold to be one of the
highest and most worthy aspirations
of any great people our problem is
to deal with what we now possess
Our problem Is to relieve the public
treasury of the drain II is already
meeting. Let us omit particulars
about the frenzied wartime build
Ing. Possibly we did full as we'll as
could have been done in the anxious
circumstances. Let us pass for the
moment the vital relationship between
a merchant marine and CONNER
cially aspiring nation. Aye. let us
suppose for a moment the absurdity
that with one $4,000, 100000 expert
ence and with the incalculable costs
In lives and treasure which may be
chargeable TO our inability promptly
to apply our potency--which God Tor
fend happening again--let US momen-
tarily ignore all OF these and turn TO
note the mere business problem, the
practical question of dollars and cents
with which we are confronted.
The war construction and the lat
ter completion Of war contracts, where
completion was believed TO be the
greater economy to the public treas
ury. left us approximately 13,30O.0O0
gross tonnage in ships. The figures
are nearer 1880. 900 tons now, owing
to the scrapping of the wooden fleet.
More than half this tonnage Is Gov
ernment owned and approximately
2.250,0O0 tons are under Government
operation in one form or another.
The net loss TO the United states
Treasury-sums actually taken there
from in this Government operation
averaged approximately s16,000.000
per month during the year prior TO the
assumption of responsibility by the
present Administration. A constant
warfare on this loss OF public funds.
and the draft to service OF capable
business management and.experienced
operating directors. have resulted in
applied efficiency and enforced econ
omies. II is very gratifying TO report
the diminution OF the losses TO $4,000
600 per month, or total of S50,0O0.-
900 a year but IL Is intolert.ble that
the Government should continue
policy from which 20 enormous a
Treasury loss is tho inevitable out
come. This loss. moreover. attends
operation OF less than third OF the
Government-owned fleet.
II is not. therefore. a question OF
adding new treasury burdens to main
tain our shipping; we are paying these
burdens now. IL is not n question OF
contracting an outlay TO support our
merchant shipping. because we are
paying already. l am not asking your
authorization of new and ad ed
draft on the public treasury; ] am
appealing for a program to diminish
the burden we are already bearing.
When your executive government
knows of public expenditures aggre-
eating fifty millions annually which
II believes could be reduced by half
through change Of policy your gov
ernment would be unworthy Of public
trust IL such a change were not COM
mended nay. IL II were not insistently
urged.
And the pity of II is that our pres
ent expenditure In losses is not con-
structive. II looks to no future at
tainments. II is utterly Ineffective In
the establishment OF dependable
merchant marine. whereas the encour-
agemont OF privte ownership and the
application of Individual Initiative
would make for a permanent creation,
ready and answerable at all times TO
the needs OF the nation.
But / have not properly portrayed
all the current Losses TO the public
treasury. We are wearing ont our
ships without any provision for re-
placement. We are having these lossc,
through deterioration now, and Q
charging nothing against our capital
account But the losses are there,
and regrettabiy larger under Gov
ernnent operation than under private
control. only a few years OF continued
losses on capital account Will make
these losses through depreciation alone
10 exceed the fifty millions year
now drawn TO cover losses In opera
tlon.
not end even there. Notwithstanding
tho known war cost Of three billions Of