Evening star., 1938-11-01
THE EVENING STAR, WASHINGTON,

and designers have developed two
new ships-one type, known as the
CO, is exclusively a cargo vessel.
These ships, of which the commits
sion now has 20 under construction,
are about 458 feet long and of $500
deadweight tons. The second type,
known as the C-3, is slightly larger,
being 492 feet over all and 1900
deadweight tons. These latter ships
will be capable of 16h knots per
hour which will make them over
Sc per cent faster than the majority
OF tie present fleet. On November
10 bids will be opened for another
series Of Ca ships, but these, instead
Of being exclusively cargo vessels,
are SO designed that they will be
capable of carrying approximately
go passengers in quarters which will
compare favorably with the best OF
the larger liners of any country
And I would like to say, at this
point, that large as our construction
program will be over a 1O-year
period, the commission has no in
tention OF creating a speculative
boom in shipbuilding. There has
been a tendency among builders in
the past to charge the limit OF what
the Government, so to speak. will
bear. The commission is prepared
to pay a fair price for what it
builds and for what it finances with
others. It has, however, no inten-
ton Of paying unreasonable prices
for ships nor will it tolerate any
attempt to make its program the
opportunity for inordinate profits.
And it can be said that much of
the success of the program will
depend upon the willingness of ship
builders and those providing ma
terials, together with the men
employed within the yards, to CO.
operate with us in a common pur-
pose in the public interest.
The commission is gradually
clearing away the underbrush which
grew up during previous years Of
Government aid to shipping. A
major example, in this connection,
was the prompt and economical
settlement of the old mail contracts.
They were Cancelled by the Con-
gress in the Merchant Marine Act
OF 1896. The commission, though
pressed for time, was able to work
out a system of settlement without
interrupting service on essential
foreign trade routes. Today the
record stands at 500 200, 900 in claims
settled, without litigation, for little
more than $6000,0O0.
Financial Condition Shaky.
In several instances, the financial
condition of important shipping
companies was such as to create
serious misgivingS in the commits
sion's mind. One company, which
operated service around the world
and was one of our largest and most
notable shipping enterprises, had
come to the brink of bankruptcy
Instead of its usual fleet of 13 vessels
in trans-Pacific and world service
it was operating but one passenger
ship and three freighters. The situa-
ton in which the company found
itself has been attributed by the
commission to unsatisfactory man.
agement arising from the failure OF
controlling interests to discharge
satisfactorily their functions and to
meet their obligations.
AS an example of the importance
Of such unit of the maritime in
dustry to the economic welfare OF
its community, I would like to cite
two or three figures. They indicate
the Importance of maintaining such
a company as an independent ship
ping unit. The Dollar Lines nor.
mally employed approximately $500
officers and men aboard ship whose
compensation approximated $2,700,-
900 per year and 900 shore employees
received approximately $685., 900 pei
year. The company normally pur-