Evening star., 1926-11-09
FARMERS PROFITS
! DEPEND ON SHIPS
Action on Bids for Vessels
Means Much to Growers
of America.
By j. G. ROYLE.
Special Dispatch TO The Star


NEW YORK, November 9.-Recom-
mendations which the United States
Fleet Corporation will make this week
to the Shipping Board with regard to
the bids lust opened for the ships of
the United States and American mer-
chant lines may make a difference OF
many millions of dollars to the farmers
OF this country.
Already this year. through lack Of
suficient American ships. charter
rates across the Atlantic have ad-
vanced sharply. Each cent additional
charged for transporting a bushel Of
wheat to Europe means a cent out OF
the pockets Of the American farmer.
In the last few years exports Of wheat
alone have averaged 175,000.000 to
1s0. .o00, 900 bushels per annum. When
American goods and commodities are
sold abroad and carried abroad in for
eign ships. the amount paid to the for
eiEn ships in reality acts as a rebate
on the purchase price Of the goods.
Object of the Sale.
The object of the sale OF the vessels
involved by the Shipping Board Is to
provide an American merchant marine
which not only can carry American
goods in American bottoms. but which
can act as a check on the advance Of
rates by foreign shipping. The chief
bidders undoubtedly have in mind the
combined operation Of freight and pas
aenger lines, thus making one feed the
other.
Fleets are valued by the nations
which own and operate them not alone
because they afford a means of trans
portation and communication between
al rf
America, but because Of the strategic
value Of the ships" said William F.
Gibbs, whose firm Is associated with
J. II. Winchester & Co. in one bid.
This Is true not only in times OF war,
but because the organizations neces-
eary to maintain the services as COM
mercial successes spread over the en-
tire world and constitute agencies
which encourage trade and commerce
with their respective countries.
Operative Personnel Important.
The operating personnel of the
foreign feet occupies a high place in
world commercial organizations. The
shipping organizations abroad are
allied with the strongest financial in
stitutions, with manufacturers and
consumers at home and with rail.
roads in all lands. The patronage Of
shippers has been enlisted through
regularity and permanence Of service
and policy.
The foreign shipping concerns
have recognized the advantage Of
transporting passengers. large pro.
portion OF whom are necessarily con.
nected with export and import busi-
ness. and who naturally patronize in
shipment Of goods the organizations
which cater best to their personal
wants. Thus good will for freight is
built up through carriage Of the
travelling public"
There Is general agreement seen in
the proposals of the various bidders
that the American merchant lines and
the United States lines can be oper-
ated more economically under one
private management. but even so com.
petition undoubtedly will be keen.
The question of mail contracts un-
doubtedly will come into the matter,
since this has been the method used
by many foreign nations to encourage
and make possible the operations of
the competing lines. In fact, the bid
for the Leviathan made by the At
lsntic Transport Co. was conditioned
upon agreement that the vessel re-
cetve the same amount Of mail traffio
a. at present.
Three Liners Necessary.
The policy followed by the most
successful foreign operators certainly
Will be given deep consideration by
the successful bidder. This policy is
based upon the theory that to main.
tain liner service which will be at
tractive and enable travellers to
pstronize the same line in either di.
rection. three ships of approximately
the same type are necessary.
For example. the White Star Line
operated the Majestic. the Olympic
and the Homeric. and the Cunard
Lane the Aquitania, the Mauretania
and the Berengaria. The Leviathan.
however, has no sister ships which
can be used economically with her.
Inis fact undoubtedly was behind
the Winchester proposal to build two
Of the Government through tho con.
struction plan fund authorized under
the merchant marine act Of 1920