New Britain herald., 1925-05-22

bursed by some assistance, which would cover the difference between the costs of ships built in American yards and abroad.
 He avowed that there was serious doubt whether the subsidy principle could be rehabiitated in our country.
 But it has been suggested" he added. that while q general or blanket, aid applicable to all routes regardless of local or peculiar con ditions might be unacceptable, spe- clal assistance for the establishment and maintenance of particular scrv- ices might well be regarded as proper and acceptable. The diff culty with regard to the subsidy proposition in this country is partly that our experience with fl has been stained by scandals; in other words 1t Is pOpularly believed that subsidy more or less implies graft.
 If finally the subsidy principle should be definitely abandoned 1t would seem impossible to extend the principle of protection to the mer- chant marine fin a manner and to the extent that will be necessary to place our ships on a competitive basis with their foreign rivals. IL follows that this negative attitude may leave us practically committed to government operation indefinitely.
 Tn spite of all the increased eco- nomy and efficiency of the fleet cor poratlon In the last 1G months no real constructive measure has been adopted by the country 10 keep our merchant flag permanently on the sea. xx We have not as yet &C., complished much toward putting our merchant marine soldly on its feet, but We will In due time. We must take up our minds that 1t Is to be q slow process and that 1t is advan- tageous to ensure a healthy growth from the present small beginnings rather than attempt to rush mat ters."
 Declaring that the merchant marine in overseas trade presents the problems, he said the principal points were the tangible differential represented fin heavy costs, includ ing construction charges and wages, and the intangible differential rep resented In those elements arising from the American operator being at disadvantage with his foreign competitor, because he is a new comer In "the international shipping | game"
 About half of the present differ enttal between our own and foreign operating costs" he added "is at tributable to intangiblcs which can be corrected in large part or abol- ished. and the other half represents the actual cost of our operation over that of competing foreign vessels. By elimination of uneconomic ports and better turn around a private American. operator might reduce even the tangible differential by one | third. X xX, Our solution of the | shipowners' problem should be 10 remove his tangible operating handi- cap and make 1t possible for him to operate successfully under our own flag.
 The fleet corporation is following consistently the presidents well known policy of efficient economy in public expenditures. We have great ly curtailed our operating losses dur ing the past year. We shall not be satisfied as long as our losses are greater than those which can prop l erly be accounted for as the un- avOidable diffcrcntIal between the cost of public and private American operation of the necessary services. Tn the matter of administrative expenses, the annual payroll has been reduced during the last four months more than a million dollars sary personnel. However, the pros rect for the greatest improvement lies In the further reduction Of ves- scl operating expense and the build ing up of revenues.
 During the last 16 months we have reduced our losses from S50,- GOO, 900 70 $&6,0O0,OQ0 q year al- though handling the same amount Of business and, in July, two months from today, we will be operating at a loss of about S2S,00O,000 @ year,