Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1922-07-27

Through the agency of the Elmer.
gency Fleet Corporation (whose stock
is owned by the Shipping Board, rep
resenting the National Governm ent),
tie ships originally intended for war
purposes were, at the conclusion OF
the war, under mandate of Congress,
Immediately put into operation by the
time needs.
Wood Ships Colossal Error.
At the height Of it's operations, Oc-
tober, 1920, the Shipping Board had
1877 steel ships plying between our
shores and those of foreign markets.
With the decline which has come in
world trade, we are now July u, op-
Grating 437 steel ships, OF a total of 81
509,485 lightweight tons, and have 993
steel ships, Of q total of 8,644,445 tons.
tied up.
For the purposes of the future, In
surveying the Governments feet, we
may eliminate the wooden ships, the
creation Of which, to my mind, was q
colossal error that even war cannot
forgive. Certainly the then Admin
istraticn had ample warning through
General Goethals of the tragedy of
waste the wooden-ship program en-.
tailed
Thus, the Governments problem of
temporary operation and ultimate dis
position is involved in the 1,430 steel
ships which it possesses
When Shipping Board operations
carried As per cent. of the value 81
our in-and.out foreign commerce. II
day, with business depressed. we sre
carrying but IS per cent; this due
largely to the fact that In time of sore
depression, the nations with either
or both old established lines and low
er standards of living make it hard
for Us to compete.
However, the 447 steel ships the
Government is today operating are
covering practically every trade route
in the world, iIsuriag constant access
to the markets aySAable for the prod
uct of America
Fleet Kept Freight Rates Down.
Immediately after the close of the
war, had We not possessed the Gov
ernment-owned feet, there is no doubt
that freights would have scared even
higher than they did; aud today were
America's aforementioned tonnage
Withdrawn from the seas, our traders
would pay increased tolls to foreign
owners. So We must remember that
while the operation OF the feet is cost,
ing us millions, it is saving US mil
lions In freights and insuring us con-
tinuous relations with our customers.
The Shipping Board. including ad
m1nistratiye expense. cost Of tie-up
and maintenance OF its unused feet,
and the operation Of over 400 ships
is being run at cash outlay Of the
Treasury approximating $4,000, 900
annually. This does not take into ac-
count the cost Of the ships and eonse-
auent capital charges.
It Is true that overhead would not
be greatly increased Ii the operation
VI MoiS Su4pS were u6eueu 70 thAS
care of Americas trade But my ex-
perience as Chairman of the Shipping
Board has caused me to realize, as l |
never realized before, that Govern
ment operation is as poison ivy in the |
garden of industry.
do not want to be understood as |
1nsinuating that the Shipping Board |
Is not today making a very good OPP |
Grafton OF the ships it is running. In |
Its early history, however, because OF |
the vast feet 1t had to run without |
properly trained organization, the re-
suits obtained were by no means those
produced by private ownership; and |
no one will go argue.
Present Losses Amount To Subsidy. |
But | aver that under the Harding
Administration the Shipping Boards
operation has become comparable to
the best operations OF privately owned
ships. The point l wish to emphasize.
though Is that Government ownership
is not building up for the future, and
is overly costly In its operations ut
all times.
While we are losing $50. 900, eco an
nuallI In cash In operation. We are