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World Charter Market Reviewed by SEEK WAGES CUT Shipowners Propose 15 Per Cent Reduction -- Engineers Decline -- Considerable Tonnage Is Idle ITH British shipowners demanding a 30 per cent reduction in wages aboard ship, and British seamen accepting a cut of 15 per cent pending a referendum of the wage question, the American seamen have tried to put up a bold front and refuse a 15 per cent reduction. The agreement with the engineers ended May 1 and the owners there- upon proposed to reduce wages 25 per cent, but in view of the position taken by the shipping board a cut of only 15 per cent was asked at this time. This cut the American engineers refused to accept. A wage reduction is the logical! order of the day. It ultimately will be spread to all men aboard Ameri- ig eins, that a 15 per cent. reduction is inade- quate is generally acknowledged by operating * heads. Due to the threat of the engineers to strike and tie up shipping May 1 many American operators rushed their ships to sea. But labor trouble at this time is not an unmixed evil. There is great difference between tie-up due to strikes and tie-up due to a lack of busi- ness. Approximately 50 per cent of the government tonnage is idle on account of the shipping slump and 25 per cent of the privately owned tonnage is tied up for the same reason. Under such circumstances a strike means a stiffening of freight rates and a better earning capacity for the ships that do go to sea. A month ago the shipping board had tied up 653 steel vessels, representing Earnings some 4,279,581 tons. At that time, A only 44 more ships were to be com- = oF pleted for the shipping board before Upgrade the building program would be com- pleted. But during April the board issued: orders to withdraw from caretakers 40 ships, representing 314,904 deadweight tons. There was evidence aplenty that the shipping depression was about at an end and improvement was in sight when the marine engineers began their strike. Gross earnings per deadweight ton on ship- ping board ships averaged $2.01 during January last, $2.45 during February and increased to $2.54 "during March. The April earnings, when their tabulation is completed, will show a still greater improvement. It would appear that the shipping board is follow- ing sounder business policies than previously, and this is reflected in the reception the requests of the board have in congress. The board has requested a defi- ciency appropriation of $36,825,000 for this year and an appropriation of $134,000,000 for the next fiscal year. Congress is reported to be planning to. act favorably on this request. In the meantime an effort has been made to work out a bareboat charter for the government ships. to carry insurance upon the hulls and machinery Time Charter The shipping board is willing © but the charterer must pay for repairs and insurance. Chartering today is upon a different plane than it was a year ago. Less than 50 per cent of the bulk charters made a year ago are being executed today. It is a business for the miscellaneous trade and to handle a boat successfully in that business requires considerably more shipping acumen than has _ been necessary during the flush days of the past. The continuation of the coal strike in England ultimately had its effect in the American market and by the latter part of April the rates were stiffening and a number of charters were being effected. The demand was for South America, River Plate and Brazil, and for Europe, West Italy. The French line has been slow to sign the French Atlantic agreement, although some modification of the rates proposed last month have been put into effect. It is believed that ultimately the French line will sign, despite the fact that only a temporary truce has been effected. The transatlantic passenger traffic has been heavy and no reductions in charges are apparent there at present, although it. was learned some reduc- tions have been made in the passenger rates to India, The Roosevelt Steamship Co., which started activi- ties by establishing agency connections on the Pacific coast, will soon start a service between New York and London with shipping board vessels. During April there was an increased interest in time charters; likewise there was activity in the charter of sailing craft. The interest in sail- ers was due undoubtedly to the pend- ing strike of the marine engineers. Among the unusual sail charters ef- fected during April was the 4-mast schooner Dustin G. Cressey by the Boston Ship Brokerage Co. to carry general cargo from Boston to Danzig, a run in which sailing vessels are rarely employed. While it would appear the shipping condi- tions on this side of the Atlantic are in a bad way. they are said not to be nearly so bad as with other maritime nations. oF Most English Donald Resigns Interest Increases steamship men have been found admiring tle OHN A. DONALD~ has - re- : £ signed as a commissioner of pe. oe the shipping board, his resigna- erean lines tion drawing from President Hard- and wondering ing an appreciation of Mr. Don- how it 18 pos- ald's faithful and patriotic serv- sible. The Amer- ice with the board. He was the can line 'of only originally appointed commis- sioner to serve out his term, hav- ing been named by President Wil- son fan, 23, 1917. Mr. Donald has been the only commissioner the International Mercantile Ma- rine will oper- ate upon a pari- ty in booking with practical experience as 4 rights in the ship operator. His work with German _ third- the board was so exacting that he class _--_ business suffered a collapse last fall from with other ves- sels in this trade. A modification has been made in the agree- which he has largely recovered. He plans to locate in New York and engage in a consulting capac- ity with regard to shipping. - 282