New-York tribune., 1922-06-21
Shipping Board
Has New Plan
To Aid Owners
Husbanding Fees Amounting
to SI.20O,O00 a Year To
BE Distributed Among OPP.
orators Beginning July |
Partial Offset Provided
Economies in Subsistence
and Stevedoring Mate
rally to Reduce Expense

From The Tribuaes Woshi-oioz Barsau
WASHINGTON. June 20.-Opcrators
OF American government tonnage will
be given additional financial assistance
by the Emergency Fleet Corporation
beginning July /. according TO an an
nouncement made to-day 20 thirty-six
OF the thirty-nine government opera
tors who were in conference with Ship
ping Board officials here.
The additional financial relief will
be in the shape OF managing or hus-
banding fees, amounting 70 S4OO q
month a vessel 10 operators having
FIVE or less ships on trade routes. and
$3.50 month for all over five. No fee
will be paid 70 operators Of more than
ten vessels. but the usual percentage
OF commission per cent on exports
and 2i1 per cent on imports will be
maintained.
The outstanding fees will aggregate
about 81 100000 n year. Chairman Las
kcr annopnced. This sum. however,
will be materially reduced in operat.
ing economies. which the board will
insist upon oil operators putting into
effect. These economics, Chairman
Lasker said. would result in savings
tional fees, arrangements having been
made 10 effect saving on subsistence.
stevedoring and on general supplies.
On subsistence alone 100000 will be
saved annually.
Needed to Maintain Fleet
The extra compensation plan was
necessary 20 maintain the organization
and efficiency demanded in the econom-
ical operation Of government chips.
Owing 10 the reduced number OF ships
in operation and lower freight rates
now prevailing. the commissions 10
many Of the operators we're 80 10"
they could not continue
j BArstow Smull. viee-president OF
the Fleet Corporation in charge OF
charters and alloeations, vho presided
AZ the meeting. announced tne inaugn,
ration Of the fee system: Ny SmuIl
said the fees did not apply 70 passen-
ger boats. in as much as the oostu
fel. that they were receiving ample
compensation by being allowed 10 per
cent Of the passenger money ana per
cent OF the freight charges.
Exception was taken 20 this opinion
bv John J. German and II. s. Brophy'
representing the Pacific Steamship
Company ana the faCihc ""i'
ship Company respectively, who said
their overhead charges were far IN
excess Of their revenue on the passen-
ger ships they were operating 10Y the
board. although IL was admitted thht
there were times In the year wheh
voyages were profitable.
c. D. Mallory, Of the Mallory Irans-
port Lines, Inc, introduced a resoiu-
tion eomplimenting the board for us
action in assisting the operators 70 re-
duce their overhead charges by THIS
financial aid. His motion was unani-
mously carried.
No Expansion at Present
In answer 20 a request for an ex-.
preston regarding the building up OF
ths present services. Mr.. Smull said
he would be pleased 10 see oil com
panies operating az least ten ships but
that trade conditions at present would
not warrant an increase in the number
OF vessels now allocsted. He added
that when the traffic would stand II
the service would be built up.
The operators were informed that
the Shipping Board had decided that
managing agents would not be allowed
&c have subsidiary companies. this rul-
ing applying TO all except stevedoring
companies, but that the operators
would have 10 handle the stevedoring
business on q competitive basis; that
IL. that where an operator owned a
stevcdoring subsidiary company he
would be required 20 take competitive
bids for a time for this class Of work,
and the successful responsible bidder
would bc compelled 20 rut up a bond.