Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-09-21
SHIPPING BOARD SELLING
GOVERNMENT OWNED SHIPS
REPORTS BUT Nine SALES

Washington. Sept 20-(Special cor
respondence)-The Harding policy Of
continuing the operation of the Am
erican merchant marine. even If 1t
must be done by the government, is
being pursued by the present admin
istration 1t Is acknowledged that
the government cannot hope to oper-
ate the ships as cheaply or as efilci-
emily as private operators would do,
but in the absence of any better plan,
the government will operate the
ships rather than yield our ocean
transportation to our commercial RI
walls. Whenever opportunity offers
and fair price can be had, the Ship
ping Board is selling government
owned ships, but with the guarantee
that they will be operated in the
American foreign trade for period
of at least five years.
There has been great difficulty in
securing even an approach to fair
price when this condition is imposed
upon the purchaser. Last April the
Board advertised ships for sale on
this condition and some weeks ago
the first sale was made-two ships to
the Grace line, with the guarantee
that they will be operated between
the west coast of the United States
In the past week seven combination
freight and passenger ships were sold
to the Dollar line, with guarantee
that they will be operated in
round the world service. This SER
vice under he American flag, will be
watched with great interest, for there
is not at the present time any other
regular round the world service I'M
der any flag. Shortly after the war
one American concern started
round the world service, but appar-
emily it was not found to be sue
cess.
1t will be noted that the few ships
that have been sold as above men,
toned, were sold to transportation
lines that have been in operation for
many years. The government ships
will be added to the fleets already in
operation. This is a favorable cir
cumstance, for there is greater likell-
hood that the operation will be sue
cessful when undertaken by concerns
that already have an established
business and arecord for successful
management. Under the Harding
policy, which has received wide pub
lie approval, no sales would be made
if the ships were to be transferred to
other flags. A five year guarantee,
however, is the best condition that
could be imposed, and. even under
this short limitation, it was found
impossible for a long time to give
ships away if the purchaser were
bound by an agreement OF this KIND.
The reason for reluctance to buy
ships with this obligation attached
is made plain by Commissioner Plum
mer. who, in a recent address, point
ed out that on ain average. the mimi
mum handicap of an American ship
in foreign trade is five dollar per
ton per year. That is, because OF
the higher costs of operation under
the American Seaman's law, It costs
ships under the American flag that
much more per ton per year IMAM IL
does foreign ships. Mr.. Plummer
asserted that the handicap is IN no
way due to the inefficiency of Amerl-
can seamen, either in the deck force
or the engine crew. 1T Is due 10
American standards of living, which
affect American ships from the time
their keelS are lald-WaSeS DelnS the
principle item"
1t was the Harding theory that
since the government, by its shipping
laws, imposes upon American ships
burdens which their competitors are
not compelled to bear, the govern
ment should bear those burdens. 1t
was for that reason that he recon-
mended passage of a ship subsidy
bill, but this suggestion was defeated
by a Democratic filibuster AS the
only alternative the government is
operating as many ships as 1t can
find traffic for, and has been able to
find buyers for only nine. and at sac
rifiCe prices.