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"| > TM \) : > 4 e 2 A] \ mull nn nn nn ie TTT TTT 1A Ki Si | 4 Ht TTT HT VOL. 49 CLEVELAND JULY, 1919 © NEW YORK 4 y y) Z Y Z Z Burden of High Ship Construction Costs is Leaving This Country -- Operating Problem Alone Demands Solution S the date of signing the armistice draws back A further into the past, a clearer vision is permit- ting the recognition of certain changes in the world's industrial life. The past few weeks in particular _ have revealed more clearly a fact which has been under suspicion for some. months. This is the colossal . growth of the American shipbuilding industry to a point where it not only surpasses in capacity the rest of the world combined but where it is revealing more clearly an ability to retain this position. Higher con- years, is today relatively of less importance. . Congress -and the shipping board are revealing a greater appre- ciation of the need for correcting the several artificial restrictions, such as methods of interpreting the meas- urement regulations. . struction costs are becoming the problem of the for- © eigner, instead of the American. Foreign inquiries are reaching yards in the United States. The price which American shipbuilders can offer is at least as good as any available abroad., The workmanship is clearly acceptable. More experience obviously is needed by American builders of ships and manufacturers of marine auxiliaries, and the orders now available and in prospect assure the acquisition of this experience. Holden A. Evans, head of one of the large yards in this country, a few months ago held up the importance of this problem of ex- perience and of time for training thoroughly the hur- riedly collected war organizations. With this experi- ence, he guaranteed the power of American yards to hold their own permanently. On deliveries, advantage is altogether with builders in the United States. Con- tracts are placeable for delivery this year against in- determinate dates abroad, generally fixed as at least 19 to 24 months in the future. A Big Problem Half Solved -- One element of the two sided marine problem which the United States attacked unsuccessfully for so many years, that is, shipbuilding and ship operating, can be considered as settled. As a shipbuilding nation, the United States seems now to be assured of a powerful position for years to come. On one side of ship operation, optimistic as well as pessimistic views are held but the degree of confidence in American ability to master this problem is con- stantly on the increase. The barrier of high costs which held back American operators for so many Attendance at the conference held at the shippin board offices in Washington in May, revealed the powerful interest now held throughout the country in this question of operating the new fleet successfully. Representatives of farmers, for instance, were there in large numbers and their remarks indicated a clear appreciation of the importance to the country of a large and successful merchant marine. They unani- mously favored private ownership. A special com- mittee representing the American Bankers' associa- tion, was in attendance and presented resolutions from the bankers calling for the development, through American companies of American shipping. Congress Must Find the Answer The decision as to the best plan for handling the rapidly growing American fleet rests with congress. 'Many leading shippers, while favoring private owner- 317 ship, urge the gradual disposal of the goyernment- owned vessels and the charter of the remaining ships -- for a few years, the argument resting on the need for developing an experienced and numerous group of ship operators. The house committee takes mer- chant marine legislation so seriously that it has secured the passage of a special resolution empowering the committee to hold sessions during a congressional recess and compel the attendance of anyone whose advice is needed. Several ship operators and bankers urge the development of shipping operators by geo- graphical groups in order more widely to enlist the support of investors all over the country. -- With half of the problem solved, the United States can buckle down to the job of finding the answer for the other half, with a greater degree of confidence than ever before. The measure of success attained in this work depends on the united study and effort of every loyal American.