New-York tribune., 1922-08-23
High I.aborCost
Hits u. S. Ships.
Institute Hears
America on Equal Footing
With Other Nations as TO
Flel and Ore, but Handi-
capped i'm One Essential
Navy Experts Give Views
Lamb Must Learn to Rival
the Lion, Admiral Rodgers
Reminds British Observer
Special Dispatch TO The Tribune


WILLIAMSTOWN, Mass. Aur. 22.--
with ". s. Culbertson as round table
chairman, the Institute of Politics to-
Gay discussed American shipping prob
iems In the presence Of Admiral Rodg
ers, chairman of the executive commit
tee OF the naval general hoard. Adj
miral Knapp and other naval exnerts
including r. T. Merrill, director Of the
bureau Of Research of the United
states Shipping Board. All of the
speakers agreed upon the need for an
american nlerchant marine.
Lloyd Georges former secretary,
fhillip Kerr, attended and listened
with attention to the discussion. 1t
was shown how the British have long
start over America in shipping and
communications, but Mr.. Kerr said he
Ieit no jealousy because America now
desired merchant feet of her own.
Admlral Rodgers told Mr.. Kerr that
the lamb would have to take few
lessons in throat cutting before it
could lie down with the lion. Mr.. Kerr
thought the prosperity of one nation
was bound UP with the prosperity Of
others.
Labor Costs Factor
Discussion centered upon the inabil-
.ty OF America to compete in ship pro-
duction and operation owing, in Mr..
Merrill's opinion, chiefly to the high
cost of American labor. On this sub
ject he said:
There are three basic factors which
absolutely govern the success or fail
ure of any nation in shipping. These
are power-that is, either coal or iron,
iron ore and labor. All three must be
available cheaply and abundantly if the
nation possessing them is to be mari
time power.
Economic considerations require
these three factors, not alone because
their possession leads to national
development along such lines MS to
prompt the building up of the mer
chant marine, but also because by their
possession the nation is able to create
cheaply and efficiently the tools Of that
merchant marine-ships.
ut is frequently advanced in dis
cussions of subsidies that the two
great maritime powers before the war,
Great Britain and Germany, subsidized
their ships only by mail subventions.
Neither granted anything in the shape
of blanket subsidy. Opponents of the
policy of national aid to shipping raise
the point that these nations were sue
cessful without government aid
"The point is that Great Britain, and
later Germany, were in possession Of
ample supplies of cheap coal, enormous
resources of iron ore and adequate
cheap labor. These two countries, there
fore, in the race for shipping su-
premacy started at scratch. The
theory of government aid to shipping
is to make up the handicap of less
fortunate nations which do not possess
to the same degree all three of the
basic requirements.
Laggard in Steel Industry
"Tn the United States we Jagged be-
hind Great Britain in the development
Of our steel industry. For that reason
we saw our wooden ships swept from
the seas, and we had no metal hulls
to take their places; we had no indus
try capable OF creating such hulls.
Time has remedied this. We can now
compete with Great Britain in the steel
industry and, indeed, can exceed her
both in price and in product Our la
Dor, however, still remains upon high
plane of living standards. This handi-
cap in the third requirement is what
has prevented the United States from
becoming the possessor Of an adequate
merchant marine except of government
construction"
Mr.. Kerr said that, in his opinion,
the cost Of labor was not to be sepa-
rated from the cost of living, and the
cost of living depended largely upon
the tariff restrictions, which prevented
consumers buying at the lowest prices.
Admiral Knapp said America should
have adequate cable and radio commu
nicati oGs as we'll as strong fleet. He
looked to America to increase her for
eign commerce to such an extent that
strong navy with q large merchant
marine would be justified as necessary
for it's protection in time Of war and
to insure proper supplies to the scene
of any American military or naval OPP
erations.