Evening star., 1925-12-07
FEDERAL AID SEEN
AS NEED OF FLEET
Only Way to Secure Private
Operation of Merchant Ma
rine, Says Ship Board.

Government aid alone can secure
the operation and continued existence
Of the American merchant marine un-
der private ownership. the United
States Shipping Boards annual re
port to Congress pointed out today
II urged that Congress take steps to
enact necessary legislation.
This aid. the report points out
could be given either through prefer
ental tariff duties. preferential ton
mage dues. or subsidies, more or less
direct II the law. which already pro
vides for one form of Government ald
is not to be utilized, SAYS the report |
then a substitute should be provided
bur whatever form OF aid is given, II
should not be TO special services hut
should be general in its provision. SO
that any American shipping firm Will
ing to undertake the building and op-
GRAFTON Of American ships VIII De Ell
titled TO the same aid ana the same
opportunities to secure that 5lo Una.
any other concern may have. Freight
ships are the craft that particularly
need assistance, the report said
Need Permanent Fleet.
hProvision should he made for a
nerInanent merchant fleet. to be hulit
IN American yards and maintained
and operated by American lahof, the
purpose which Congress had IN lnlno
and which it supposed IL had accom-
plished when 1t enacted the law OF
1920" says the report.
The problem is a fundamental one
the report emphasized, as failure tc
progress means retreat and practical
Ia. 3 90 frn
as soon as existing vessels are worn
OUT or have become so out of date as
10 be excessively expensive for opera
rion.'
No reference was made to recent
changes in the operating arrangement
between the Fleet Corporation and the
board, accompanying the discharge OF
Leigh {. Palmer as president OF the
Fleet Corporation. or to the wisdom OF
maintaining the board as at present
constituted.
Economies effected in operation OF
the Government merchant feet were
described in detail. the total losses for
fleet operation being reduced from
about Sal 0o0 900 in the fiscal year
1924 to about $50, 900 600 in 1928. II
this the reduction of losses OF cargo
lines formed the largest part, but i'm
provement was also shown in some OF
the passenger services. The number
of employees of the Fleet Corporation
has been reduced from 3,O33 i'll 1873
80 2.245 on June 80, 1925, and the mum
or of managing operators from 81
20 %.
Surplus Vessels sold.
During the last fiscal year o3 sur
plus vessels of a total dead Welg M
tonnage OF 1857, We're sold Tor
nearly $4,000 900. while five of the
President type passenger hoats-those
on the California Orient line-were
sold for operation. as we'll as 9 other
tankerS. cargo and passenger vessels.
Liquidation Of claims proceeded, q
total of SlTi.256 0G0 being adjusted for
SCI t,394,S in cash. and offsets and
counterclaims OF 81 ,459 .QSS. or a total
value Of s43.S53.925.
Declaring that about so per cent
Of American tonnage in operation Oh
overseas trade routes is Government
owned" the report said that prac'
tically all American flag services
other than those operated as indus
trial carriers, would have 10 be aban
doned to foreign ships II they were not
maintained by the Government.
whether the board will go for
ward with the establishment Of a
merchant marine sufficient TO carry
the larger portion Of our foreign com
merce. in accordance with the mer-
chant marine act" Il continued, "or
whether the lines already established
at great cost are 10 Re grad ally aban-
doned must be determined by Con
eress, either by specific legislation or
in the granting OF appropriations sutfi-
cient OF insufficient 10 carry on the
work.
American flag vesSels are now far
from carrying II ma jor portion Of the
American imports and exports. our
cargo vessels in the foreign trade
have been steadily decreasing in mum
ber"
Discussing Government aid, the re
port said that If the present method
If maintaining the merchant marine
in foreign trade by means Of annual
appropriations for operation expenses
g TO continue. Congress must face
the problem OF requirements.
Need Two Passenger Ships.
Merchant ships will eventually be
.'orne obsolete" the report continued
The development Of internal com.
hustion engines has brought about a
radical change, which means that
within a few years the bulk Of a
great Governnent-owned merchant
fieet will be out Of date. There IS
imp1ediate need for at least two new
passenger ships available as naval
auxiliaries for our United States
lines
ut is seriously contended by some
that the repeal Of the so-called La
Toilette act should he had Whatever
The merits or dernerits of that act
may be, American ships had been
driven out of our country's foreign
trade before this act ever came into
existence.
THE suggestion that Americans be
allowed to purchase ships abroa d
overlooked the fact that this permis
sion was granted by the canal act
of 1912, and no ships came under the
American flag.
THE suggestion that repairs tc
American vessels should be made ir
foreign ports overlooks the fact that
that privilege was the shipoynar's
for more than half a century, and
during that whole period American
ships in the foreign trade of the United
States continued TO disappear from
the sea.
Existing law makes possible the
proper support of mail ships. Freight
ships, the ships which handle the vast
agricultural and manufactured prod
ucts of this country and transport
necessary raw materials Tor our mills
are the craft that particularly neeG
assistance.
The naval subvention also is no'
only permissible but justified by the
practice Of foreign nations"
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