New-York tribune., 1922-11-21
Ship Board Has
Reduced Losses
OF Operation
chairman Lasker Declares
sehieyement Is Unique i'm
History of Operation by
Any Governmental Agency
Result Proves Efficiency
Should Inspire Confidence
in Suggestion of Subsidy
Aid for Marine of Future

NV oAgEeStiDh 0I StaDsIuN
Aid for Marine of Future
The average received for each tor
nftfreight MAS so per cent less in Au.
gust Of this year taan In August oi
iest year, and 50 per cent less this
September than last September, but ths
net operating loss of the Shipping
board for the period shows decrease
this year, according TO Chairman Las.
ker.
'@rhc higher efficiency of the present
Shipping Board over its predecessors is
provahle by the fact that while the
worlds ocean carriage is generally far
below last years" he added, "the
United States Shipping Boards vessels
are carrying as much freight as last
year.
at is not offensive bombast. but the
facts as expressed in figures, that lead
70 The incontrovertib)e statement that
the achievement of the present Ship
plug BOARD - unique in operation ae-
comphshments in the history Of gov
crnmcnt."
"The same efficient officials who have
heen able 70 bring this order out of
chaos are the ones who aver that in
spite of what has been accomplished
government operation is impossible; be-
cause, while losses have been lowered,
even in fact of an unbelievable shrink
age in gross income (despite the fact
that in tons carried there was no
shTiukage) no account has been taken
in any year of capital charges, The
greatest efficiency could not achieve
profitable governmental operation.
Claims $27,09e,000 Saved
|T1Upiuc tbp lagt giN- rnopfho
present board lost approximately as
uucb money as it oid in the same
peri ID last year. While the freight
carried was only 100000 tons less,
the gross income this six months for
that approximately same amount of
freight decreased $30,000,000 In that
same period. because the government
started many new passenger lines, pas
senger income was increased $1,000
coo, though tanker operations de-
creased by s4,000,000. So that probably
IN the six months just ended, as
against the same six months of last
year, the board. in actual efficicncies in
operations alone, saved $4,000 000
In the fiscal year before the present
shipping board came into office, that
Of 1920, the operating loss Of the board
was between $150,000,000 and $200,000,-
600 The books were not so kept as
to make ascertainble exactly the real
losg, hut the books were we'll enough
kept to leave no doubt of the minimum
and maximum range.
with The accounting and operating
of9iciencics established in the first year
Of its existence-1922-th present
shipping board reduced operating
greatly decreased tonnage offered this
year, because of stagnatiou in world
commerce, the present board has been
able to carry the same amount of
freight tonnage this year as last year
That this record is due to efficiency
and good management is further
proved by the fact that the equal ton
mage carried in August of last year
was carried in 238 ships. while this
year it was carried in $40 ships; the
equal amount Of tonnage carried in
September Of last year was carried in
l59 ships, whereas this year it was
carried lii 1913 ships.
Freight Rates 80 Per Cent Less
"ln the face of the decrease in world
carriage, freight rates for the last six
year In spite of those decreased
freight rates on the same amount of
tonnage carried, the shipping boards
loss was & little less than last year.
No miracle could accomplish this, only
efficiency of management, and the
audited figures conclusively prove the
efficiency OF the present boards poll
cies, for in the end the proof of eff
cheney Of a business is its financial
operations.
although we have over 1900 ships,
of which we are operating 400 and
l.lo0 are tied up, our feet is unbal-
Rnced We are using up the very cream
and most desirable types of the ships
and when they are used up there will
be no replacements, for the government
will not build and private ewnesship
withers and dies in competition with
US. No matter how we improve our
situation, 1t all will finally come to
nothing, because the best ships will be
worn out ard useless. In the mean
time the Treasury is bearing the loss
Of tens Of millions Of dollars annually,
entailed even by efficient operation--an
operation that, ] aver, is challenging
the admiration Of expert shipping men
the world over.
"Thus we are brought to the point
where the question before the American
people is not: Shall we suhsidize or
shall we not subsidze shippingP We
arc already subsidizing shipping
through tho operation of ships by the
Shipping Board, and. az | have under
taken 80 show, we will ultimately be
nowhere, because our ships will be
worn out.
The subsidy bill proposes that
lesser amount than the Slipping Board
is losing be transferred to aid private
owners, that they may meet established
foreign competition and through the
greater efficiency and inspired initiative
Of private ownership accomplish the
things that governw eEt operation can
never accomplish, oae of the chief fac !
tors o. which Is the building of types
of ships needed to balance the fleet for
profitable operatons--this being war
built fleet without thought of peace /
time needs"