The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-09
BIG RETURNS TO U. S.
UNDER SHIP AID LAW
Nearly Billion a Year Through
Ocean Freights and In
surance.
BRITAIN REGAINS LEAD
Administration FOresees Great
Gain if Subsidy Program
Goes Through.
BRITAIN REGAINS LEAD
Special Dispatch 70 rHr New YoaN nra.,D.
New York Herald Bureau.
Washington, ID. c. April g.

Washington. ID. c.. April 3.
Nearly 81 100000. 900 a year would
flow to the United States from ocean
freights and marine insurance IL the
American Merchant Marine could be
built up and developed to the standard
of operation planned by President Har-
ding and officials OF the United States
Shipping Board Gross earnings OF this
ngure each year can be expected ulti-
mately, according TO officials If the Ad-
ministrations ship aid program meets
the approval OF Congress and succeed
ing administrations CARRY through the
plans.
The working out Of the program may
require ten years. but benefits will begin
TO accrue almost Immediately. il is prom
ised To American ship operators ard
American exporters. Gradually the ben
ents will increase. officials say, until with
the merchant marine at a successful
standard OF operation the United States
viii be rated as a seafaring nation.
The British merchant marine largest
in the world. earned in excess of ST.
o00,0OO.0 900 each year during the war
and before. British merchantmen now
total in the neighborhood of 10000 900
tons and the United States has about
100000 tons.
Earnings of British ships.
EnGlands merchant ships last year
earned gross OF between $200, 900
and $500, 000 900. or about one-third of
the receipts of normal times The re-
eeipts OF the American merchant marine
are estimated at about one-half that of
England's vessels.
Ton for ton. American ships fell far
below the British vessels In earnings
A very large proportion OF the Amer
lean fleet spent most of the wear de-
pfeciatlng at anchor and tied to piers
Many British vessels also were idle
The world carrying trade was at
low ebb.
The British fleet. however. is carry
ing moro in proportion to its tonnage
man the American. Approximately
one-third of the American foreign
trade in 1921 moved i'm American bot
toms British, Scandinavian and Dutch
ships carried the remaining two-thirds
A portion of the American fleet. now
the largest in the history of the coun-
try in tonnage, is useless for ordinary
commercial! and passenger purposes.
Wooden vessels constitute a large pro-
portion of the ships flying the Amer
lean Nag. Tied up, almost TO a vessel
these ships reduce the average receipts
per American ship in comparison with
the ships of foreign competitors.
American ships also are forced in a
very large number of instances to travel
in ballast during half of each voyage.
This is particularly true of Americas
ships returning from Europe Shippers
in that part OF the world give their
business to their own bottoms except
when competitors can underbid the ma
tive freight rates. American ships are
unable to carry freight from Europe to
this country at rates that are lower
than those offered by british. Dutch
and Scandinavian vessels. American
operating costs are high i'm COMPARE
son with the costs of competing ships
To equalize this differential IN favor of
foreign competitors is one OF the pur-
poses Of ship aid legislation proposed
to Congress by the Administration.
Some members OF Congress and also
Administrative officials are against
Government aid to American ships. Ac-
cording to the reasoning OF one admins
trative official. 1t would be uneconomic
for the United States to step in and
take large proportion of the receipts
from the worlds carrying trade. With
out the money earned by their ships
some European nations would not be
able TO buy as heavily as now OF Ameri-
can goods. ii Is argued. There Is n
given amount OF money to be earned
each year by doing business with other
nations. The United States can earn
this money by selling goods or by SELL
ing freight space. but not by both meth
DDS. according TO this point of view.
This is an outlook. however. which Is
not subscribed to by large number OF
Administration officials. The amount
OF world business is growing all the
time. they contend. and there is no rea-
son why the United States can not step
into the market and win a portion OF
this increased business through ocean
freight carrying. That is the official
Administration view