New-York tribune., 1922-09-24

Many friends and some enemies--of
American shipping have advocated the
payment of bonus TO officers and men
on board ship as a means OF increasing
efficiency and of offsetting the higher
cost of operation under United States
registry. The friends of shipping see
in the plan a sincere attempt to put
American vessels on the most econom-
ical basis possible. The enemies use
it as an argument against government
aid on the theory that steamship own
ers ase not doing their best TO put their
own affairs in order before coming to
Congress for assistance.
The controversy over the subsidy bill
has renewed public interest in the
merits of the bonus plan. Discussion
of its value has been confined in the
past largely to academic arguments
II Is possible now to put the debate
on the ground Of solid facts. The Stan
dard Oil Company of New Jersey, own
ing large feet of tankers, has ex-
perimented with the bonus since July
1, 1920. After two years officials Of the
company state that the results have
been sufficiently satisfactory to con-
tinue the plan, though it has not proved
to be a panacea for the ills Of the
American merchant marine. The stu
alton as 1t stands to-day may be sum
married briefly as follows:
United States Wages Higher
/. The Standard Oil Company finds
that the bonus system more &han pays
FOR itself, but that it does not Offset
the difference in the cost of operation
under the United States as compared
With foreign flags.
2. The bonus develops loyalty
among officers and men and promotes
continuity of service.
3. The bonus draws into the service
Of the company the most efficient en-
ployees. This is an advantage, how
ever, which would disappear il other
steamship companies followed the same
plan.
Officials of the Standard Oil Com
pany find it difficult to demonstrate by
figures that the bonus pays big divi-
dends, but their confidence in its mer-
its Is shown by the fact that they in
tend to continue it. Many other factors
enter into the estimates on operating
costs and savings which make it impos-
slble to segregate the effects of the
bonus. For instance, the prices of coal,
oil, foodstuffs and other supplies gem
orally have dropped in the last two
years, so that the total economies can
not to be attributed entirely to the
bonus. The quantity of supplies con-
sumed cannot be laid solely to the
efforts of the bonus recipients, for en-
gines have been overhauled and new
systems have been inaugurated by the
company itself, in addition to the meth
DDS employed by the officers and crews
The plan first put into effect in 1920
has been improved in a number of de-
tails The company found that it must
guard against too much efficiency"
brought about by the intense competi-
officers to show savings Economies
were discovered in some instances to
be accomplished at the expense of the
ship. On occasions the company was
compelled to make sure that sufficient
stores were placed aboard; that the
proper quantity of food and fuel was
used The revised system, made opera
tive on January /, 1929, contains inno-
vations which insure real and not fc-
titious economy.
Cost Is Per Cent
The. cost of the bonus system to the
Standard Oil Company this year is
about per cent of the total marine
pay roll 1t is estimated that by the
end of the year the plan will have cost
about 100000, compared with the
wages of s2.0o0,000 The total will in
crease in the future as the disburse
ments on account of continuous serv
ice mount up, but it is estimated thai
1t will never aggregate more than IL
per cent Of the annual pay. The com
pany employees in normal times about
1000 officers and men. or this numbe,
20 per cent participate in the bonus 70,
emclency. Most of these are licensed
and unlicensed officers, as the un
licensed men receive the benfits onl,
OF the continuous service increments.
Other American companies ar,