Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-07
GOVT SHOULD AID
MERCHANT MARINE
OUR SHIPS DECREASE

UUk ShlPS UEGkEASE
Washington, Dec. s.-(AP)-The
need for some form Of government aid
to assure the continuance and devel-
opment of an American merchant ma
rine is urged upon Congress today by
the Shipping Board.
Government aid alone. either
through preferential tariff duties.
preferential tonnage dues, or subsidies,
more or less direct, can secure the OPP
Grafton and continued existence of an
adequate number of American mer-
chant ships under private ownership"
said the Board in its annual report
IF the law which already provides
for one form of government aid is not
to be utilized, then a substitute should
be provided; but whatever form of aid
is given, it should not be to special
services, but should be general in it's
provisions so that any American ship
ping firm willing to undertake the
building and operation of American
ships will be entitled to the same aid
and the same opportunities to secure
that aid that any other concern may
have. Freight ships are the craft that
particularly need assistance.
Provision should be made for
permanent merchant feet, to be built
in American yards and maintained
and operated by American labor, the
purpose which Congress had in mind
and which it supposed it had accom-
plished when it enacted the law of
1920"
The problem Is fundamental one,
the report emphasized, as failure to
progress means retreat and practical
withdrawal of our flag from the seas
as soon as existing vessels are worn
out or have become so out of date as
to be excessively expensive for opera
ton"
No reference was made to recent
changes in the operating arrangement
between the Fleet Corporation and
the Board accompanying the discharge
of Leigh c. Palmer as president of the
Fleet Corporation, or to the wisdom of
maintaining the Board as at present
constituted.
Economics
Economies effected in operation of the
government merchant fleet were de-
scribed in detail. the total losses for
fleet operation being reduced from
about $41,000,000 in the fiscal year
1924 to about s30,000.00O in 1925. In
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 3O33 in 1924 to
2245 on June so, 1925. and the num-
Der of managing operators from Sc to
rs.
During the last fiscal year, SO sur
plus vessels of total lightweight
tonnage of 359,S67 were sold for near
~ 100000 while five of the Presi-
dept type passenger boats, those on
the California-Orient line, were sold
for operation as well as 10 other
tankers, cargo and passenger vessels.
Liquidation of claims proceeded, a to-
tai of $171.256.000 asked for being ad-
3usted FOR $21,394,SS6 in cash and off,
sets ana counterclaims of $22,459,0SS,
or total value of S43,S53,925.
Declaring that about 80 per cent of
American tonnage in operation on
overseas trade routes is government
owned, the report said that "practi-
cally all American flag services, other
than those operated as industrial car
riers, would have to be abandoned to
foreign ships if they were not main
tanned by the government"
whether the board will go forward
with the establishment of a merchant
marine sufficient to carry the larger
portion of our foreign commerce in
accordance with the merchant marine
act" it continued. "or whether the
lines already established at great cost
are to be gradually abandoned, must
be determineU by Congress. either by
specific legislation or in the granting
OF appropriations sufficient or INSULT
Gent to carry on the work.
Steadily Losing Ground
American flag vessels are now far
frem carrying major portion of the
American imports and exports. Our
cargo vessels in the foreign trade
nave been steadily decreased in num-
ber"
Discussing government aid, the re-
port said that If the present method
or maintaining the merchant marine
in foreign trade by means of annual
appropriations for operation expenses
is to continue. Congress must face the
problem of requirements.
Merchant ships will eventually be-
come obsolete" the report continued.
me development of internal COM
custom engines has brought about
within few years the bulk of a great
government-owned merchant feet will
be out of date. There is Immediate
need for at least two new passenger
SHIPS available as naval auxiliaries
Tor our United States lines.
IL is seriously commended by some
that the repeal of the socalled LaF,ol
lette Act should be had, Whatever
the merits or demerits of that act
may be. American ships had been
urlven out OF our country's foreign
trade before this act ever came into
existence.
The suggestion that Americans be
allowed TO purchase ships abroad
overlooked the fact that this permits
SION was. granted by the canal act of
1917, and no ships came under the
American flag.
The suggestion that repairs to
american vessels should be made in
foreign ports overlooks the fact that
.nat privilege was the ship-owner's
Tor more than half century. and
curing that whole period American
SHIPS in the foreign trade of the Unit
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 or this country and transport
necessary raw materials for our mills.
are the craft that particularly need
assistance.
THE naval subvention also is not
only permissible but justified by the
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