South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-01-27
SHIPPING EXPERTS
TACKLE HARD KNOT
Problems Brought by Eco
nomic Conditions Present
Enigma 10 Board.

WASHINGTON. Jan. 2l.-Ihc re-
organized United States Shipping
Board and Fleet Corporation is
slowly bat surely emerging from the
fanEIe ~ difficulties which economic
and othet conditions forced on MS
and is today progressing to the goal
~ an efficient directorate for an
American merchant marine. accord
ing 20 j. Barsfow Smull. vlce-presi-
dent in charge Of ALLEGATION and
charters Of the board.
The difficulties which Mr.. Smull
has in mind ne stated, concern
chartering Of boats. "a depression in
shipping worse than any before and
a complicated system of allOcaung
and operation OF boats. % the hands
81 private agencies large numbers or
shipping board vessels have been
tied up or operated with difficulty
owing 90 unprecedented conditions.
Concerning the withdrawal and
ALLEGATION of these vessels. Smull
stated that on July - there were
80 active managing agents or she
fleet corporation operating GA steel
hips or this number - agents
were tramp operators. with a
total Of 125 vessels in service.
losses ON an these vessels were
from $4,000 10 $4,000 per round
trip 90 Europe. totalliug $125o.0oo
in June
Torty-thrcc Active Agents.
con Jan. j. 1922. there were only
g3 active agents handling 321
ships Smuu said. "All tramp
steamers have been Withdrawn. and
the losses in October. the last month
for which wc have 90 report, have
been cut 90 100000 and are still be-
ing diminished
From the latter part Of July TO
the present Smul said, approx
mateIv 526 steel cargo boats have
been Withdrawn from service, and
about IT3 have been allocatcd, thus
leaving about 355 steel cargo and
passenger vessels still tied up. These
Hgurcs are only approximate, as
later reports are expected on them.
These boats. &C. is hoped, viii be
vantagcous terms for the govern
chartered eventually on more adj
mcnt than has been the case under
the old charter system This system
is being supplautcd by the bare
boat and time charter as fast as
eondiious permit. a general re-
organization OF the chartering ma
chinery haas gradually taken place,
il IS said. with % view 90 putting this
end of the work ON 20 business basis.
Bare Boat Charter.
The barc-bo8t charter plan has
been handicapped By the hard eco
.nomic conditions. but at present
about % vessels are operated ON
this basis turning iH approximately
$4,000 "a month With the looked
for improved conditions, IT, is stated,
many other boats are expected to
Toe chartered I'm this way
Regarding drawbacks encountered
i'm chartcring. Smull pointed out
that some time ago the board de-
cided that 10 was unfair 90 privately
owned tonnage to charter board ves-
sells on barc-boat basis TO COM
plete with established coastwise
lines This is due TO tine fact that
the private owner mas TO charge
higher rates owing to his greater
overhead costs of operation than the
government fleet.
Smul cited the Jones act. which
bc says. requires government YES
sells Go avoid injurinE private lines
by charterIug along lines which
would compete with private vessels
He pointed out that the Jones act
must Doe the guiding rule for all
agencies u building up the Amer
jean shippiu- industry and indicated
that it is aIonE its Intended limos tn,
board IS now working to solution
of lbs problems