Evening star., 1927-12-05
MERCHANT MARINE
| LOSES s16,ODQ,ODO.
Board Cites Need of Sub
stantiaI Aid if Fleet Is to
Be Turned Over.

Substantial Government aid will be
required If Congress desires the mer-
chant marine turned over Immediately
to private ownership, the annual re-
port of the Shipping Board, made puo-
lie today. declared in survey OF the
situation. Operating loss for the nscai
year ended last June was placed at
SIC. 900 900. compared with $19,00O,O00
the year previous. The report said
the United States Lines, operated by
the board. showed profit of S37l,OO
while a S962 900 loss had been recorded
for the prior twelvemonth.
Turning to the shipbuiding situa-
ton. the report said that Great Britain
has built Al vessels for every first
class merchant ship Uncle Sam has
sent down the ways since 1921, while
in the same period Germany has built
II and Italy 5. with France and Japan
constructing about 4 each.
Competition Is Great.
Foreign building. the report said,
provided foreign competitors not only
with more ships. but also with faster
ones. for the modern trend in ship
building all has been in the direction
Of speed. with economy of operation
due to the use of up-to-date machinery.
1--WE are thus being outclassed not
only in tonnage, but also in the char
acter of the service rendered the ship
per-" the report continued. More ana
more are we likely to get the less de-
sirable classes of cargo-the commodi-
ties invariably handled by slow ships
and with low freight rates.
The board possessed 500 ships-3O7
In active operation and SIG laid up-at
A. Il - 81, q
sold to American citizens 1,134 ships,
representing 4,993,346 tons, for $S4,-
All ,O2s.S9. including 9 established ship
line services disposed of on basis of
guaranteed operation for fixed num-
ber of years.
After holding hearings in SO cities
the board found opinion unanimous
that the United States should have an
adequate merchant marine for national
defense and commerce. With almost
equal unanimity it was held that this
merchant marine should be privately
owned. Until 1t is possible for private
interests to successfully own and oper-
ate an American marine, the Federal
Government must continue to do so,
the board concluded.
-$10,467 500 as Aid Fund.
Among the important functions of
the DOdfQ was. the encouragement OF
shipbuilding. From the construction
loan fund the board has paid out
SIC, ,467 500 to assist steamship compa-
nies in the construction of new bot
toms. The fund now totals $72 ,552,-
6s2.26. From the beginning Of the
administration of the fund, it was
emphasized, there has not been a de-
fault in connection with any of the
loans in the payment either of the in
terest or Of installments on the prin-
cipal.
Cost of maintaining cargo lines,
while materially reduced, continued to
show loss. although a number of ves-
sels were sold to private interests dur.
ing the year. The board pointed out
that while the operating loss was low.
cred $3,000,000, trade in Shipping
Board vessels expanded materially,
placing the American flag in every
important port in the world for the
first TIME in rs years.
The board declared that while every
means available was being used for
the expansion of American trade in
American ships. the country's mer- |
chant feet was being outclassed by |
foreign competitors. and that Govern |
ment aid was the only logical method |
to overcome the lead being taken by |
other countries.