Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-12-04
MARINE ACT
TO Aid u. S.
ship RECORD
Construction of New
Merchant Vessels Is
Predicted to Get I'm
der Way

WASHINGTON, Dec. 3.-(P)-A
shaft of optimism today was shot
through the Shipping Boards pic
ture Of the operations Of the Amer
lean merchant marine during the
year.
With the nations shipping in a
comparatively low state, the board
manifested assurance in its annual
report over the prospects for sue
cessful privately owned lines thru
the provisions Of the Jones-White
merchant marine act passed last
spring.
The board predicted that consid-
cradle new construction of merchant
vessels would be gotten underway
during the coming year as a result
Of the passage Of the act increasing
the construction loan fund, provid-
ing liberal terms for loans and
means by which ship operators have
obtained valuable mail carrying con-
tracts.
The new measure gives every rea-
sonable indication of accomplishing
the three main purposes for which IT
was enacted, namely. TO assist IN
the development Of the American
merchant marine generally, to aid in
increasing the foreign m Of
the United States, and to facilitate
the transfer of the governments
war-built fleet and established SER
vices to private ownership" the re-
port said.
Declaring that the American ship
ping industry cannot stand still the
report said that for every ocean
going ship laid in this country, fifty
are laid in England, ten in Germany.
five in France and Italy each and
four in Japan.
Total loss on operations and YES
sells laid up during the fiscal year
ending June 80. amounted to Si7,39i,-
600, including the loss of the United
States Lines of S465 900 compared
with the net profit Of $37l,O Q dur
ing 1927.
Exclusive Of the loss Of the Unit
ed States Lines, the net loss for car
20 and combined passenger and car
20 services for voyages and inactive
vessels amounted to S16,926, 900, which
is a reduction of S1,364,000 from the
1927 figure.
The report attributed the losses
partly to increased cost in prepar-
ing the vessels for service, COM
pared with similar costs in previous
years. and TO the fact that there was
not as great a demand for Ameri-
can bottoms in the cotton and grain
export trade. 1t pointed out. how
ever, that the years business showed
an improvement in cargo tonnage
and revenues in 1928, compared with
1926, there being 1,7s3,000 more tons
carried the past year with increased
revenue Of Si2,55s 900, compared with
tonnage and of 1926.
During the past year the Shipping
Board sold 81 vessels, of which AZ
were in established lines on the Pa
cific and Atlantic coast operating in
foreign trade. The aggregate sale
price of the vessels amounted to S6.-
059,200, and the aggregate dead
weight tonnage vas 554,O04. On
June 80, however, the board still had
758 vessels, of which 253 were in
active operation and sos laid up.
Gross revenue Of the United States
lines for the fiscal year 1928 am
ounted to s16,266. 900, compared with
Sl6.675 900 in 1927.
The board urged the passage Of a
bill adopting the boards codifica-
tion Of navigation laws. Legislation
looking to the adoption Of The Hague
rules governing ships in foreign
trade. and the passage Of a measure
before the forthcoming International
Conference on Safety of Life at Sea
in London in 1929, restricting the
loading Of ships to the load line on
vessels were recommended.
provisions should be made" the
recommendations continued, "for tax
exemption on American vessels oper-
ating in foreign trade, including a
provision whereby deductions shall
be allowed from taxable incomes de-
rived from operating profits to the
extent that such profits are devoted
to new ship construction in Amer
lean yards.
Legislation should be enacted
looking to the transfer TO privately
owned American shipping interests
of the peace-time business now han
died by army aid navy transports
and BY vessels owned and chartered
by the Panama Railroad Steamship
Line"