Evening star., 1924-11-16
President Backs u. S. Ship
Operation as Some Lines Paw

States. To be a money maker a shir
must run ladened both from tn,
United States and back TO it. That t.
reason Why the lines operating 10
the Orient are doing 50 wcIl. WfthoEr
counting off dcpreciation. two cl
those lines will make about 81 ooo. n0e
this year. and even with depreciation.
taken into account. the gain may b
about S500,00o
Buyers Would De Assured.
Already proposals for the purchase
OF these lines are coming to the
Fleet Corporation and the Shippins
Board. The situation indicates clearl:-
that the Government might do well.
Tor awhile, to forget about trying to
sell its merchant vessels. Just con
tinue to operate, and when the Ships
begin TO earn under Government opc-
ration. or TO show signs OF breakin2
even. there viii he no lack of pur-
chase
>There are routes. strongly competi-
Hve, some OF them. and some int"
territory rot yet developed which
the Government undoubtedly will
have 10 continue to operate for
years. Some of these arc the lines 70
the United Kingdom and the northern
European countries. But there is rea-
son why the Government should con
tinue these lines. if for no other rea-
son than to assure American ship
pers a square deal when it comes to
service and rates.
Today the Fleet Corporation has
some $40 cargo and passenger YES
sells in operation. going to every part
of the world. In the European trades
there are 81 services, with 176 yes
sells; the Mediterranean trades, eight
services, with "a vessels: the South
American trades, eight services, with
Al vessels. and the Far East trades
16 services, with IS vessels.
The balance of the merchant feet
is tied up, some 500 or 900 vessels.
These tied-up ships are a very great
problem. Efforts are made. to keen
them in shape. Some of them are
ready for service when called on.
But that potentially active tonnage is
a real burden on the shipping of the
world
But Few Vessels Sold.
Very few vessels have been sold by
the Government this year, either for
service or for scrapping. Tho mum
ber of vessels in operation has been.
reduced by the consultations of lines
effected over the various trade routes.
But 1t Is confidently predicted thai
the volume of business done since the
consultations will compare very
favorably with that done prior to the
mergers. Tho more vessels in opera
ton, the greater the cost, under eX-
listing conditions, to the Government.
On the other hand looms the danger
of a gradual elimination of American
| flag vessels until the vanishing point
has been reached, and the overseas
! merchant marine. except for the in
dustrial carriers, will have passed
into history again.
These Industrial carriers, by the way.
| constitute a very considerable part
today of the privately owned overseas
merchant marine flying the American
| flag. The United States Steel Corpora
! tion has its own vessels and SO has
| the United Fruit Company the Stand
ard OIL Company and some OF the biz
| lumber companies. These carriers are
part of the business OF these in
dustries. They have cargoes without
going out to look for them, and be-
cause Of their business connections
| abroad, they find it easier than others
to obtain freight to bring back 70 the
United States. -