New-York tribune., 1922-12-11

and passenger rates, charter hire and
from amounts recovered from previous
voyages. The latter item is not ex-
planned In the report, but presumably
Il covers unauthorized expeditures by
managing agents.
Voyage Expenses Obscure
Il is more dificult 10 distinguish the
meaning Of the various items In the
operation outgo. Voyage expenses in
clude payments made by the managing
agents and also supplies furnished by
the board. Repairs and alterations
probably include the reconditioning Of
vessels used as transports during the
war or built for that purpose and
afterward reftted for commercial use.
This item would not loom so large In
normal years. Insurance premiums and
losses apparently apply 70 the book
keeping system employed by the board,
which carries its own insurance.
The showing made by the board last
year is undoubtedly less favorable than
the next financial report will be, but
there Is every indication that the gov
eminent could not, under the best con-
ditions, be made to show profit as
compared with, or in competition with,
privately owned foreign lines. Last
year the board was handicapped by the
fact that IL inherited a clumsy and
wasteful organization, which was un-
dergoing an operating loss Of $1,000
900 a month. Some time was required
| before the new board could cut this
down to S3.000,000 or so a month
Excess employees had TO be dis
/ charged, departments reorganized,
inefficient agents eliminated, sur
plus ships tied up and the feet cor
poration generally put on a business
basis. II is noteworthy that the pres
ent board cut the total loss from
$500, 600, 900 to S50,000,00O year.
II is conceivable that with better
freight rates the board might actually
be able to show a surplus for a year,
without any need to call upon Congress
for funds. But such result would be
an Illusion. The United States would
be paying interest in other direcslons
for the money which the Shipping
Board was using free. Moreover, the
time would come when the ships would
need TO be replaced.
The heavy losses due to government
operation can be realized more readily
when the result for the year 10 COM
pared with that Of the International
Mercantile Marine Company for the
calendar year 1921. The annual re-
port of that company shows capital as
sets OF S195,000,000, gross earnings Of
SS5 100000, and a net profit for the
period, after deducting interest and
depreciation, Of S5,797 900. The Ship
ping Board, with a smaller investment
and higher gross revenues, revealed a
loss Of s49,O00.000.
The Shipping Board loss cannot be
attributed 70 lack Of skilled managers,
for the men now in control Of the
operations Of the Emergency Fleet Cor
poration have previously demonstrated
their success in private enterprise.
New Routes Maintained
A large part Of the Shipping Board
loss last year was due to the fact that
1t was required, under the directions
Of the Jones act, TO maintain essential
trade routes. The purpose Of these
was 10 develop, even at heavy initial
losses, ship services which might In
the long run be made profitable for
investment by private capital. Many
Of these lines, especially from the
smaller ports, would not have been
kept in operation by a private enter
prise. They served their purpose In
providing greater facilities for the
movement of American foreign COM
merce.
Turning from the operation of 400
active vessels as a private business TO
the financial statement Of the board
as a whole, it Is shown that the deficit
for the year was about S56,000,0 900. II
Is merely a coincidence that this figure
Is nearly the same as the loss revealed
on the active feet.
The division Of claims settlement
shows an expenditure of only S3,000,-
900. This figure will be increased
enormously during the present fiscal
year as a result Of the active work
Of the claims commission and the
board in wiping out cases which have
been hanging over since the armistice.
The division Of construction had an
income Of S16,000,000 and an outgo Of
$4,000, 900, due largely TO the compile
tion Of the war building program. This
item xill disappear in the next annual
report. The division of transportation
and housing, as a result Of the sales
of property during the year. turned
In a handsome surplus TO the board.
The return Of the division Of opera
tions Is the only obscure item in the
list. II shows an outgo Of s106000,000
and an income Of 100000. leaving a
deficit Of S79,000,000. 1t is probable
that these figures include repairs and
alterations, insurance and other ex-
penses which are given in the preced-
ing list more in detail.
The trend of cash outgo over cash |
income, excluding receipts from Con- !
gressional appropriations. for the
fiscal yesrle22 shown below;
xcess OF cash