Evening star., 1934-05-02

tract for the sale Of vessels for scrap
ping when the vessels had an operat-
ing value In excess of their scrap
value. The present fleet owned by
the Government, 277 strong, includes
the 86 ships which we're not delivered
to the Boston Iron 81 Metal Co. OF
this feet 228 are in the laid-up fleet,
and 40 are being operated under
agreement with private operators. A
Joint Committee, representing the
Navy Department, the War Depart
rent and the Shipping Board Bureau
has recently made a report holding
that 1859 Of the total number of Gov
ernment-owned vessels be held avail
able as naval auxiliaries and that
the remaining 108, having no naval
defense value, be disposed of.
Forty-six cargo ships are now being
operated for the account of the Mer-
chant Fleet Corporation by five pri-
vate managing operators upon
compensation per voyage basis begin
ming at $4,000 and grading down to
So, 500, $1,000 and two at $4,000, with
eight receiving at present an advance
payment Of $4,000, pending adjust
ment Of the rate Of compensation.
Fear Of Depressing Shipping.
When it comes to getting rid of the
108 vessels held to be of no use to
the Government as naval auxiliaries,
the question arises whether their sale
would not further depress the shipping
industry, which is having hard
enough time as 1t is.
The case of the Leviathan, flagship
of the American merchant fleet, is
illustrative of the difficulties which
the merchant marine faces. 1t was
sold to a subsidiary of the Inter
national Mercantile Marine with an
agreement that it should make seven
voyages year. But for several months
this huge ship has not been in opera
ton. 1t was built in 1914, has become
obsolete in some respects and Is at a
disadvantage competing with the
faster and more modern ships, which
are less expensive to operate. Yet the
military value of the Leviathan in
event Of war and its huge carrying
capacity, Is greater than that Of any
Of the other merchant vessels. The
question Is whether the company
should be compelled to carry out its
program of voyages, at a loss, or
should be allowed to turn the vessel
back to the Government which would
continue to care for the ship and hold
| 1t for emergency. The present policy
of the Secretary of Commerce Is to
insist upon the operation of the Levia-
than until some other policy be
adopted with regard to the merchant
vessels by the Government.
Advocates of scrapping the entire
remaining feet of Government-owned
merchant vessels say that this would
remove the Government entirely from
ship operations, that it would remove
the burden of this tonnage from COM
petition with privately owned ships on
commercial lines, and that it would
gradually pave the way for replace
ments by these private lines with mod
ern ships. The immediate and future
development Of the American mer-
chant marine must depend, in the
opinion of Mr.. Roper, upon a defini-
ton by Congress as to what line OF
ships sales policy must be followed
This matter Of defining clearly
ships sales policy is held to be most
important.
| Question Of Replacement.
Any plan Of financial aid to ship
ping by the Government must con-
template the replacement Of large
proportion Of American vessels now
operating, for many Of them will be
obsolete within the next few years
This program Of requirements is vital
| to the development and maintenance
on an overseas merchant marine. And
finally 1t is contended that Govern
ment aid to shipping must be pre-
dicated upon program OF systematic
reorganization reallignment and con-
Solidation Of trade routes and lines
| covering these routes. Mr.. Roper holds
| that the most careful consideration
should be given to the economic val
ue of our present steamship services
operating in the foreign trade, to as
! certain to what extent greater eff
cheney could be secured through con-
solidations, better Coordination OF
services, the possible utilization OF
some existing services as feeder lines
and other similar developments which
| would place the American merchant
marine upon more profitable basis.
A study Of all these factors in the
merchant marine problem, according
to Mr.. Roper. indicates how greatly an
expansion and improvement in foreign
trade, through the reciprocity tariff
bill, would benefit the merchant ma
! rine IF there is tn he q stable Over-
seas merchant marine, there must be
a reasonable volume of sustaining
traffic for American ships.