The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-12-03
SAYSMERCHANT
MARINE MUST
BE SUBSIDIZED
Higher Wages Paid American
Seamen Makes This
Essential
LICENSE ONLY AMERICAS
Specific Instances of Foreign
Discrimination Are Being
Investigated
LICENSE ONLY AMERICAS

Washington, Dec. 3.-Preferential
tariffs or subsidy remain the only
methods of insuring maintenance OF
an American merchant marine, the
Shipping Board declared today in its
annual report tax Congress. Elimin"
alton of discriminatory legislation rs
a means of indirect aid, the Board
held, would seem to leave as the
sole way out the assumption by the
government of the excess cost OF
operation"
This in turn can be accomplished
by either Of two methods" continued
the report. "First by subventions to
American vessels while engaged in
carrying cargoes to and from the
United States sufficient to enable
them to compete with foreign ships.
or second, by the complete assump-
tion by the taxpayers of the entire
cost of operation, the resulting loss
being the country's contribution to-
ward a national merchant marine.
From the standpoint Of efficiency
and economy there can be no choice,
Private operation, personal responsi-
bility and individual initiative would
require relatively slight assistance
to be placed upon competitive basis
with foreign shipowners. On the
other hand, operation by the govern
| ment with its system Of checks and
balances has obvious and serious dis
advantages" !
The report listed these four factori
as operating to the disadvantage OF
American shipowners:
High Standard OF Living
The high standard Of living in tut
United States, with consequent ef'
| feet on labor costs, which woult
make "an American built ship repre-
sent an investment 25 per cent great
err than similar vessel constructed
on the Clyde.
| High wage scales on American
ships Amounting on an ordinary
cargo steamer to approximately $40,
600 year" more than the wages or
a similar foreign ship.
The difficulty of raising capital il
the United States for strictly mari
time enterprises, as contrasted will
certain foreign countries where this
field is a popular one for investors.
The advantage held by foreign
lines through long careers in thu
business.
"Some of these handicaps may dis
appear in time," the report contnu
ed. "The most serious, however
are those due to restrictions which
are imposed upon our ships by oul
laws for the general good Of tn
country as whole. For example
our laws require that only citizens
of the United States shall be licens
ed as officers. Because of this the!
receive and are not begrudged
wage nearly twice that which foreigl
officers enjoy.
obviously if the country Is t.
impose financial burdens upon it
shipping, it must, in order to obtai1
such shipping, be willing to bea
from the national treasury the high
er costs which such imposition
bring"
Make New Plans
Practical completion of the surplu
property disposal program Vas re
corded. Of the shipping plants, on
ly the Skinner and Eddy ptopert
and that at Hog Island remain o
the books, the latter representa-
land only as the structures have bee
sold. Of 80 housing development!
two remain because of unsettled IL
gal and financial matters" connccte
with them.
, As a result Of the firmly continue
policy of retrenchment, the Board
payroll was reduced in the past fl.
cal year by 1912 employees and b
$2,623,0O0 representing 3l.7 pc
cent in numbers and 24.9 per cent
dollars" from the preceding year.
Under the head of "recommende
: legislation" the Board summarize
the government aid bill which faile
!, of passage and added that "the abo'
enumerations cover the chief aids I
.. an indirect nature, all of whie
would be beneficial to the Ame1ica
merchant marine." 1t did not ind
cate whether it would favor q r
, newed attempt to obtain enactme1
- of the bill. Minor amendments
- existing legislation were endorse
:. including changes in the laws 60
= erning ship mortgages. marine risl
= and marine insurance.
The labor policy Of the board W
stated to comprise "close cooperate
= with the private shipowner" al
- ;. COLLECTIVE bargaining wherever pc
: sible." There have been no lab
- disturbances of major Importance,
" the shipping business during I
lyear just ended, the report said.
+ Specific instances of foreign d
!. elimination are being investigat
= by the Board with view to corre'
! ing them or enforcing retaliati
4 measures, it was said. Among tho
e listed in the report were the alleg
.rd practice Of Australian shippers
ID giving preferential treatment to Ct
4, goes shipped by Canadian ports, q
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