Every evening, Wilmington daily commercial., 1922-02-08
GOVT, mot COMPETING
WITH PRIVATE FIRMS
Secretary Dsnby Says Navy
Policy Is to Work Only on
lts Own Ships.

-
Government competition with pri-
vate ship repair yards} is. discussed
by Secretary OF the Navy Depby In
a letter to the Atlantic Coast Ship
builders Association. which organi-
zation has taken the lead In protest.
l.ig against the continued use OF
Navy yard facilities for the repair
OF merchant vessels.
Secretary DENLY maintains that II
IL not the policy OF the Navy Depart
mcnt to perform work on privately
owned vessels except In cases OF
emergency and where no frlvate IA
cilitles are available but explains that
the facilities of the Navy yards have
not been denied Il. S. Shipping Board
vessels whom the Shipping Board as
signs Its work to a Navy yard.
| Clarence Samuel King, secretary OF
| tie Atlantic Coast Shipbnilders AS
| sociation. who today made public
Secretary Denbys letter, declares that
the private ship repair yards can re-
pair vessels prore' economically and
cxpedttiousv than the Navy yards.
which pay wages substantially In Uv-
cess OF those az private plants and
are not penalized by dehlurrage for
exceeding the contract time while
private ship repairers are held liable
Tor such demurrage and for any
damage sustained TO vessel while
at their yards.
i In having It's repair work done ir
the Navy yards, Mr.. King points out
the L. S. Shipping Board face5 tn,
possibility of paying charges m ex
cess of the original estimate. which 1,
tentative and may be Withdrawn OF
Increased az the work proceeds ant
/. the coast OF performances is foun'
greater than whit was expected to b.
, the contract price.
The head of the Navy Department
: recognizes the merits Of these .argu
ments. promising them the most care
: fui consideration and declaring tina
It is not his dcsire to work an In
: Justice or unnecessary hardship o.
!. any private firm or Individual. VI
: personally pledges that every effor
Will be made to handle the matter !
Justice to all and in the best inter
: ests OF the country as a, whole.
n The government Is not in compe
t.tlon with private firms for>privai
work" says Secretary DENLY. How
ever, as regards the government
!. own work, the facilities Of the va
rlous Navy yards have for man
r years been utilized for repairss
= vessels belonging to other deper
y merits Of the government. In recer
years the United States Shippin
; Board, which Is also a coordinate
y governmental activity, has assigns
/ certain of its marine repair work (
q The Navy. although lately tho Nav
= Has received little Of this work. Tn
4 performance of work by one dcpar
ment OF the government for anoth'
is OF long standing and is recognize
by numerous laws. decisions and CO..
respondence."
While the Secretary Of tho Nav
claims that there Is no law pr
hibiting the Navy yards from r
70 pairing Shipping Board vessels ar
b asserts that this Is sometimes II
10 most economical procedure when ad
y quate facilities are available. Mr.. Xii
& maintains that this competition
a very harmful to private business al
L. III ills OHllilOll COSlS Sic sQf
Of more than il would 10 have the wo
IN done by private contractors.
J. "It has become patent TO Amerfc,
n maritime interests" says stateme
by Mr.. King. that stability of owe
10 seas trade cannot be expected w1tho
A. worldwide Industrial recovery and {
r. resultant return Of foreign exchan
" 10 a normal basis. thereby assist
G. IT. the free flow of commerce n
a. will fill the holds OF the many Anne
can ships at present available.
q with heavy preponderance
tonnage under the American flag
:. present controlled TO greater
lesser extent by the United Sta
-. Shipping Board. under charter q
- otherwise. ALLEGATION of which V
- sells TO operators has furnished
- field for the employment OF
q, Boards tonnage which at the sa
W. time has curaned rhe building of n
ships for private account and W
little or no demand tor new tonns
pending the adjustment of the fact
that have contributed to the tenn
DO0 rary lull in shipping, the ship va
thus released from construction w
ace must content themselves with rer
les work. the facilities for which beco
in propor-tionately larger as the tonni
The at present building Is delivered.
inc american ship repair yards dur
ent the war expended large sums of mo
of in building drydocks, eqnpping Il
or plants with improved machinery
otherwise increasing their capa,
ind and efficiency to meet the extrao
ST. nary wartime demands OF shipp
Her both government and private as
the as allied, which facilities since the
ute cline In shipping are now idle a {
i IL IL