New-York tribune., 1922-11-27
American Merchant Fleet Keeps
Rates Lo,o on Farming Products
sl,OOO,OOO,OOO i'm Agricultural Exports During
Last Year; DC Grain Rate Compares With $40
in War Shortage of Ships; U.s. Ownership Costly
By David S. Kennedy

Opponents OF the ship subsidy bill
N the House and Senate have out
lined two alternatives 10 the conssrue-
tive marine policy put forward by
President Harding. One OF these, ex-
pressed by Senator Capper, of Kansas,
as leader of the farm bloc, involves
the abandonment of the American u1er-
chant marine TO its fate as q non -es-
sential industry that deserves no help
If it cannot stand by itself, The other,
expressed by Senator La Toilette, of
Wisconsin, as the leader of the radi-
cal-progressive group, calls for con-
tinuance OF government ownership and
operation. These stand apart from the
plan of the Administration to expend
approximately $3o,o00,e00 year in en-
abling priyately-owned ships to COM
pete on equal terms with their foreign
rivals, thus establishing merchant
marine for peace and war, and Incl
dentally saving about $20,000,000 on
the amount now being spent by the
government on ship operation.
One of these three courses must be
chosen. Defeat OF the bill will lead
naturally to one of the other plans. A
large number of steamship men be-
tieve that q policy of discriminating
duties fayoring American ships would
be more effective than subsidy, but
it is apparent that the issue at present
is on the Administration measure. No
different legislation can be put through
Congress within several years, and
meanwhile the progress already made
on the seas will have vanished.
The alternatives offered by Senator
Capper and Senator La Toilette hold
no substantial promises Of better con-
ditions. The experiences of the last
eight years give ample evidence that
neither plan will protect the interests
Of the export trade of the country.
The policy suggested by Senator Cap
per is one of surrender. To abandon
shipping now means return to pre-
war conditions. Several illustrations
serve to show the situation as it existed
then. American ships in 1918 carried
only 9 per cent OF the foreign COM
iherce of the nation and practically
none of its outgoing or incoming tray-
eiers. The result was that foreign
steamship lines were able to raise
rates on American products and even
to shut off important markets. It was
not until the Shipping Board put on a
line of first-class passenger and freight
vessels to South America that foreign
lines followed suit and gave the coun-
try an adequate service.
Lack Of ships before the war made
1t necessary for the United States to
spend nearly $4,000, 100000 co create
fleet which could have been built for
ore-ffth that sum under normal con-
ditions. Furthermore, freight rates on
grain, as an instance, rose to S240 for
100 pounds, compared with t3 cents
before the war and to 10 cents now.
When President Roosevelt sent the
battle Aeet around the world in 1907
the ships had to be supplied by foreign
vessels.
Senator Capper declared that an
American merchant marine is non
essential, that the farmers have never
mad trouble in dispatehing their goods
overseas and that freight rates have
been satisfactory. This superficial
statement is refuted by an analysis cf
conditions at present.
The grain trade touches the farmer
vitality. 1t is one of his chief products
and considerable part of it goes
abroad. If American ships are useful,
lhen this must be shown in relation TO
grain traffic.
Lloyd's Register gives the volume Of
World shipping at 60,000,000 tons, in
round figures. It is estimated that
thus is aDout 100000 tons above the
present requirements. The surplus has
forced freight rates down to one-tenth
and in the case of grain TO ONE
thirtieth OF the peak during the war.
The significance of these figures lies
IN the fact that the American feet of
l8,000,o00 tons, which was ACQUIRED
during the war, represents approx
mateiy the surplus of shipping at this
time. Without these vessels to give
competition freight rates would not
have reacted to their existing level.
The farmer would not be able to shin
MS MS grain abroad at to 10 cents a
Iuo pounds Foreign steamship lines
you'd ne Tree TO maintain high charges
through the conference systems am
pioyed so effectively before the war
still another angle of the situation