Evening star., 1922-01-15
What Is to Become OF Nations Thousands OF Great Ships

, cent on the first cost of the vessel
| In other words. where the foreignes
can make profit of S per cent, which
| is a reasonable average figure in the
steamship business, the American
operator under best conditions will
| be losing / per cent.
Another reason for government
| assistance is the need of developing
a balanced fleet which shall be more
and which shall be Of real value as
| an auxiliary to the Navy in time Of
war.
Four-fifths of the present Merchant
Marine of the United States Is of
, wartime construction. These vessels
were Of such types as could be most
easily produced. regardless of their
postwar usefulness. AS a result. our
merchant marine has a surplus Of
standardized low-speed cargo ships.
but IL is seriously deficient in the
more specialized types of vessels of
!, good size. and reasonable speed. for
use as cargo liners, and in vessels of
high speed and large passenger
capacity for the development Of pas
senger lines and the carriage of the
United States mails.
This deficiency is emphasized by the
work of the conference on the limita--
tion of armament. The Importance
to the country of its commercial ship
ping varies. as was stated at the
conference, inversely with the reduc-
tion in number of capital ships. In
case this country is at some time in
the future called upon to defend its
existence from attack, it will require
fast ships for use of scouts, large
ships for transports, refrigerator
ships to carry food to its fighting
forces. as well as a multitude Of gen
eral service ships.
THE merchant marine act Of 1920
commonly called the Jones ACT
wisely provides that the United State
Shipping Board shall develop anG
maintain services upon desirabl
trade routes until such services ar.
developed to a sufficiently profitabi,
stage to attract private capital. Wit.
our comparative inexperience in tn.
business of world shipping, and with
the tremendous grasp which our va
rious competitors have upon the
trade routes of the world, it may, es-
pecially if the present depression con-
tinues long. be incumbent on the board
to maintain desirable services at a
loss for a considerable period Of time
Rather than operate government
owned vessels in the trades, it is the
hope of the Shipping Board that aid
can be provided, and in its provision
there can be left sufficient discretion
in the hands of the Shipping Board to
compensate private owners sufficient
ly to develop those desirable services.
each calling for different treatment,
entirely with private vessels.
| This leads up to the third reason.
and possibly the one of most imme-
diate direct interest The war left
the United States Shipping Board in
possession OF large amount of tom
mage Pursuant to the mandate of
the Jones act. it is operating this ton
mage. or a considerable portion of it.
in maintaining, under the American
flag, the services considered desirable
upon essential trade routes. By its
very nature. governmental operation
is more costly and less efficient than
private operation. Congress and the
people emphatically desire the gov
: ernnlent to liquidate its assets and re-
tire from the ship-owning business at
the earliest possible moment. The
board finds in the present acute ship
ping depression, with the resultant
keen competition from foreign ves-
sells, that it cannot dispose of its
tonnage unless some adequate and as
sured assistance is held out to the
,, prospective purchaser, SO that he may
feel that opportunity does exist, il
he be energetic and efficient, success
! fully to operate American ships in
foreign trade. Without this guaran-
tee the efforts of the board to dis
pose of its holdings and to- retire from
*