Evening star., 1925-01-10


ernment can never operate COM
merclal shipping as economically as
private capital; the very presence OF
the Government in the business, with
all the uncertainties of Government
policies that are inherent, stifes
private growth. 1t Is far better TO
pursue liberal sales policy and take
an immediate loss on the sale OF ships
than to continue their operation over
long periods with the prospect Of
greater loss. provided sales contracts
can be made OF such character az VIII
guarantee the continued maintenance
of necessary services.
Lines which cannot be disposed or
to private interests in the near flu
ture. but which are necessary In the
national interest, should be placed on
the best possible footing, and main
tained thereafter by the Government
until such time as IL may be possible
to determine the character and
amount OF aid that may be necessary
to bring about their purchase and
continued maintenance by private
American citizens. Any line which
does not develop real promise OF be-
coming self-sustaining. even with
reasonable Government aid. should be
discontinued"
Policy OF ReplacementS.
With regard to requirements the
committee has this to say:
TRADE routes cannot be cStab-
iished on a permanent basis unless
provision be made for hte gradual re-
placement of obsolete vessels with
up-to-date equipment. A recent sur
vey indicates that the present equip
ment Uf proper conversions of steam
ers to motorshlps OF the cargo liner
type are made) is SUFFICIENT without
major replacements for the next f1ve
years. After that new construction
will be necessary"
The committee is strongly in favor
ot the cargo liner and opposed to the
operation OF tramp ships by the Gov
ernment 1t says:
The whole tendency OF world
shipping is toward the cargo liner
type of vessel maintained in regular
operation on specific trade routes.
This type also lends itself TO defense
purposes. Coversion and construction
activities therefore should be d.
rected toward this type Vessels OF
such character. especially OF Diesel
power, lend themselves to American
genius in organization and labor-ssvlng
operation.
Cargo liner services are those
which contribute most substantially
to the expansion Of distribution Of
our products abroad. Recent studies
of world shipping indicate that the
liner Is displacing the tramp to
considerable extent. The Govern
ment would serve no useful purpose
and would sustain much loss Of
public funds by undertaking to
maintain tramp services.
Aside from its use in speeding the
mails and its potential usefulness as
a naval auxiliary, the fast passenger
liner has comparatively little value.
1t does not carry consequential cargo
and therefore is an almost negligible
factor In the extension of commerce.
The Government serves no useful
purpose in supporting a luxurious
passenger service, except to increase
the mail facilities and to provide a
reserve for possible national defense,
and the requirement of this reserve
can be largely fulfilled by the cargo
liner type of vessel.
IF the naval and postal authorities
determine that there is necessity for
larger and faster type ships than the
cargo liner type, which shall be more
adapted TO passenger and mail services,
then the construction and operation OF
such ships should be undertaken def
iuitely upon naval and mail appropria-
tion sufficient to cover the additional
cost OF construction and losses in op-
GRAFTON chargeable to the operations OF
the Emergency Fleet Corporation. EX-
cept on this considera ton we do not
favor further construction of large At
lantic types Of passenger vessels. The
further construction OF this type of YES
sci means the indefinite continuation OF
the Government In the shipping busi
ness