Evening star., 1942-03-22
i. 5. Ship Drive
May Even Top
High Goals
Standard Statistics
Cites Deliveries Of
One q Doy Now
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 81. The
Presidents goal Of 100000 tons Of
merchant shipping (about 800 ves-
selO in 1912 and 100000 tons
Q,000 vessels) in 1943 is likely to be
reached. barring serious strikes or
raw materials shortages, according
to survey just released by the
Standard g. Poor's Corp.
1t is hoped. In fact, that the 1912
output can be stepped up to 9,000.-
600 tons and that goal of 20.000,-
900 tons for the two years can be
attained. Ship deliveries are now
at the rate of about one day. The
rate should increase to two a day
by May and should reach three a
day before the close Of the year.
Since the inception of the emer-
gency shipbuilding program. the
Maritime Commission has arranged
for financial assistance from the
Government to construct 1863 new
shipways. Most of these ways have
now been completed and all should
be in use before the year end. Op-
erations Of the industry already are
largely on a 24-hour- day. 7-day-
week basis.
Contracts for 1872 ships, with
gross tonnage Of 5,162,080, were
awarded in January. At the close
Of the month, there were 1866 sea-
going merchant ships Of 11,120, los
gross tons under construction or un-
der contract, excluding 50 vessels of
1853 800 tons on order for the British
Purchasing Commission. Contracts
for an additional 1853 ships have
since been placed, bringing the total
above the 1900 ships planned for
1912 and l943. The eventual con-
struction Of 2,877 vessels. including
1872 emergency ships, is now
planned.
Naval Work Speeded.
Naval construction Is also expand
ing rapidly; 81 warships q battle
ships, aircraft carrier. cruiser,
l6 destroyers and II submarines)
were added to the Navy in 194l, and
so other ships g battleships, 6
cruisers, "a destroyers and II sub
marines) we're launched. Completion
OF these vessels and further in
creases in launchings and keels laid
promise capacity operations for
those yards engaged in naval work.
Increased efficiency, full-time op-
erations, and the use Of newly con-
structed facilities will contribute to
the siZable expansion in shipbuild-
ing volume this year. Despite rising
costs. operating profits on this busi-
ness should be substantially larger
than in 1941. The new taxes, how
ever, will absorb this increase and
ANAL earnings will show little
change from the favorable levels OF
l941.
Cargo Rates Reduced.
Effective January 20, 1912, the
Maritime Commission reduced cargo
and charter rates to base level
equal to that prevailing September
l, 1910. The new charter base rate
is 1925 a ton pc month and COM
pares with the $3.50 rate previously
in effect.
These reductions do not apply to
ships operated under foreign flags
and the base rates will be supple
mented by surcharges to cover cost
increases since September. 1910, or
to reflect the speed or other ad-
vantages enjoyed by many ships.
Moreover, shipping companies will
be hired by the Government to
operate these vessels and will re-
ceive management fees. At the
same time. they will avoid the ad-
verse effects on profits Of time losses.
the transportation Of low-revenue
cargoes, further increases in costs
and possibly enforced return voy-
ages without cargo. Thus the de-
clines in revenues will be much
smaller than the cut in base rates
would indicate.
The Maritime Commission has
also ordered the suspension Of
coastal and intercoastal routes and
the transfer to its control of all
ships of more than 5000 tons en-
gagged in these services. Even at
present reduced rates the charter
revenues on vessels thus transferred
will, in many cases, equal or exceed
those obtainable from normal oper-
atoms. Thus, the effect of charter
rate reductions will be less adverse
for coastal and intercoastal oper-
ators than for other shippers.
Headed by Land.
The War Shipping Administration
was recently formed by presidential
order. Admiral Land. chairman of
the United States Maritime Com
mission, was appointed shipping ad-
ministrator, with power to purchase,
charter, requisition and control the
operations and use of all United
States vessels.
The w. S. A. also controls a
10000 900 war insurance fund and
can issue insurance to American
operators when coverage at reason
able rates is not available from
private sources.
Although protection against cap
ital loss is thus provided at a rea-
sonable cost, the increased sinkings
of the Atlantic Coast and in the
Pacific will cut into operating rev.
enues Of owners of ships destroyed.
With taxes higher, earnings Of
most ship operators will be at least
moderately under the highly favor
able results for 1941, but compar-
isons with pre-194l years should
still be very favorable. Great Lakes
shippers should fare better than
average, for these concerns will not
be affected by rate reductions and
loss Of ships Even for these COM
panies, however, tax increases are
likely to exceed gains in operating
profits.