Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-04-16
NATION MAY HELP
PRIVATE SHIPPING
Does Not Want to Drive
Craft Under U. S. Flag
Out of Business.
BY DAVID LAWRENCE.

America 8 decision 10 MAINTAIN Il
merchant marine at all costs may
mean a working arrangement with
that small group of private ship
owners operating under the Amer
lean flag which would naturally be
affected by so large competitor as
the United States government itself.
The die has not been cast, il was
learned today, without taking into
account the competitive effects that
will naturally flow from "a govern
ment engaged in aggressive opera
ton OF its own ships and with all the
financial resources necessary for the
enterprise.
Although the entire merchant fleet
Will be offered for sale and the gov
eminent would he glad to sell them
nobody seriously expects the bids TO
come anywhere within reach of the
price considered justifiable by the
President and Chairman Lasker of
the Shipping Board. This Is because
the pricate owners cannot afford to
maintain Improbable routes and the
government Is determined not to split
the routes. but to operate all or none.
In justification of this policy. the
President has been told by the Ship
ping Board that to give away THE
others at a loss. would be unfair to
the American taxpayers, who would
root the bill and who would be en-
titled to have the profits Of the good
routes used 70 offset the losses OIL
the routes to remote parts of the
globe which do not pay for them
selves, but which enable American
shippers TO get satisfactory rates for
their cargoes.
VIII Go Whole Way.
AS a matter Of fact the entry of
the government into the shipping
business is considered n foregone con-
olusion because the bids probably will
not be high enough to justify sale.
Under the circumstances then the
government will then "go the whole
hog" abandoning the previous prac-
tice of operating some ships through
agents who received a commission
plus the cost of operation This
agency method has been one of the
most Instantaneous practices set
UP since the famous cost plus 10 per
cent" of war contract days-at least
this is what the administration says
about 1t now that it has had d chance
to observe the practice under peace
time conditions.
Tt is interesting TO learn that 81 per
cent of Americas foreign commerce
is handled by the American ships to-
oil tankers in the Caribbean, and the
Great Lakes traffic, neither of which
would be affected by government COM
petition because of the short hauls
involved.
May Ask for Help.
OF the 81 per cent, private owners
engaged in transoceanic trade have
about thirty ships. Eight ships arc
operated by the Hartman lines and
about fifteen by the International
Mercantile Marine. Some of the so
called industrial ships operating on
specific routes by the industries that
own them. such as the Steel Corpora
ton. will naturally keep on operating
their own vessels. but by and large
Il gets down to about thirty boats.
which will feel the competition of the
government If unaided. Some of
these owners are said to have applied
already for foreign registry. They
can also, to be sure, always go into
the coastwise trade if they desire,
but the probabilities are that those
already enga ged in business will ask
the government to cooperate with
them in preserving the business they
have built up and a sympathetic ear
Will be given to their case.
There are many such problems yet
10 be worked out, as only the funda
mentals have been agreed upon. The
United States shipping fleet consists
of about 1900 vessels. only 800 of
which are being operated. If 400 could
be kept going the board would feel
that it was accomplishing great
deal. The remaining eleven hundred
ships are not all suited for foreign
trade. During the war the demand
was for vessels of very few types and
1t was easier to standardize them for
war purposes.
Now, however. the government feels
the need Of specialized types to com
pete with the fleets of other countries
and q special appropriation will have
to be authorized by Congress for new
construction as natural corrollary
to the governments new policy OF
public operation. It's just as if
railroad had built all day coaches to
carry troops and found after the war
cars, fiat cars, oil tankers. etc. The
American government will set out to
compete for the trade of the world
and will need all the types that other
companies abroad now maintain.
The new policy represents a turning
point in the history of American
merchant shipping. The war claims
been cleared up, and by July l, when
the present fiscal year ends, Chair
man 1asker hopes to turn over to the
President {, completely reorganized
service ready for the aggressiv COM
petition which the next few years will
require. in his place he will no doubt
recommend that a practical shipping
man be appointed. President Harding
himself has limited that one of the
officers of the Fleet Corporation
would be promoted. for it is no longer
question OF policy-Chairman
Lasker has worked that out for his
successor-but 1t is a matter of oper-
t~. oil ltpn re 81