Evening star., 1923-12-03
|SH|P BOARD ASKS
FINANCIAL RELIEF
Preferential Tariffs or Sub
sidy Vital, Says Report
to Congress.

Maintenance Of an American mer-
chant marine can be insured only by
preferential tariffs or a subsidy, the
Shipping Board declared in it's an
nual report to Congress today. Elm
ination Of discriminatory legislation
as 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" the re-
port added. 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 losse 9
pelng the country's contribution to-
ward 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 a relatively Slight assistance
10 be placed upon a competitive ba-
Sis 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 fac
tors as operating to the disadvantage
of American shipowners:
The high standard Of living In the
United States, with consequent effect
on labor costs, which would make
IAN American ship represent an in
vestment 25 per cent greater than a
similar vessel constructed on he
Clyde"
Wage Scales Higher.
High wage scales on American
ships amounting on an ordinary
cargo steamer to approximately slO,-
600 year" more than the wages on
similar foreign ship.
The difficulty of raising capital IN
the United States for strictly mari
time enterprises, as contrasted with
certain foreign countries, where this
filed is popular one for investors.
The advantage held by foreign lines
through long careers in the business.
obviously. II the country Is to
impose financial burdens upon Its
shipping. II must. in order to obtain
such shipping, be willing to bear
from the national Treasury the high
er costs which such impositions
bring"
Failure of the government aid bill
indorsed by the board to pass the
last Congress made IT necessary, the
other plans" 1t then described the
conferences which led to the decision
to consolidate the present thirty-nine
routes to eighteen, and to offer these
,, at public sale. While no purchases
have yet been consummated II was
said that several seem sufficiently
promising to warrant further nego-
tiations, which, it is hoped, will lead
to the sale of some important
routes"
Pay Roll Reduced.
AS a result of the firmly continued
policy of retrenchment. the board s
year by 1,612 employees and by S2,623,-
600 representing 31.7 per cent in
numbers and 24.9 per cent in dollars"
from the preceding year
The appended report of the Emer-
gency Fleet Corporation gave in de-
tail statistics covering physical OPP
Grafton of the fleet. Cargo and pas
senger vessels remained nearer con-
stant during the past fiscal year than
IN any preceding year. this report
said, with 365 in service on June 80.
1928. The chartering department re-
ported charters of tankers and cargo
steamers for -3S9 trips, representing
1896 900 .deadweight tons. although
aside frornScoal and oil movements,
the ruling freight rates for the year
were helowsf actual operating costs"
Sales during the year brought S30,-
13S, ,90696. the ships disposed of in
cluding 145 steel vessels of $4,000
tons and 2s7 wooden ships of $4,000
tons: The minimum price schedule
adopted by the board was announced
as for steel cargo tonnage $40 per
ton, for tankers, $65 per ton. and for
lake-built craft, $3.50 to $3.50. ac-
cording to capacity,