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January, 1917 world’s ship yards will be about as follows: Increase, Tons, per cent. U. K., Colonies & Canada 2,260,000 14 U. S. coasts & Gt. Lakes 826,000 53 GerintaANny eis oa oe ee 605,000 30 All other countries....... 809,000 16 PPGtal arse en Miele sk 4,500,000 23% The normal tonnage of the world this year amounts to about 50,000,000 tons. Of this there has been 5,000,- 000 tons destroyed, 12,000,000 tons commandeered, and 4,400,000 tons in- terned, making total withdrawals of 21,400,000 tons. This leaves available at present for regular service not more than 28,600,000 tons, or 57.2 per cent of the normal tonnage, which readily accounts for the present high freights and high values placed on old vessels. Presuming that peace will be re- stored by the end of 1917, we have the following conditions: Present “available .tonnawe.. 07 ees a eee Commandeered and interned ships released...... Probable production in year 1917............. Total Leaving an available tonnage of................ At the end of 1918, should peace be restored, there will certainly be required...... Available at end of 1917, as above............. Estimated construction 1918.........-...2eeceee Still leaving a tonnage deficit at end of 1918 of From the foregoing it will be seen that high freights and high prices will continue and ship yards will be busy for some years to come, and it behooves all concerned, the govern- ment, owners, builders and shippers to see that we obtain our share. The Norwegians Again As to the increase in American merchant marine, flying the “Star Spangled Banner”, the situation may be quite different, though we still hope not. At present the ship yards of the United States are building nearly 1,500,000 tons of steel and over 50,000 tons of wood vessels to be finished during the next two years. Of these at least 700,000 tons are for foreign account and from_ reports recently received this tonnage will be increased, so that about one-half of the vessels now contracted for in this country will fly foreign flags, mostly the flag of Norway. At the present high freights, not- withstanding the high cost of build- ing, owners can well afford to pay the difference between operating under the American flag and that of a for- eign country, but possibly future con- ditions may change the special advan- tage we now possess. The European war has aided the foe e eee eee ee eee ee eee eee ee tose eesee cy oy 7 eee eer ewes eee ere roars ese ee eeereeeeee ee see ee eeseeeeeseeeeeoseeeeeoseeeeeeeee Ce eee e ee ee ee em ewww were roe Ce Per rere ee ee See ee merchant marine in the number of vessels registered as well as in the number contracted for in American yards. To Sept. 26 last there were in all 196 foreign built vessels of 642,802 tons admitted to American registry, but there were 261 American built vessels of 151,676 tons sold to foreigners, leaving a balance of 491,- 126 tons, almost 10 per cent increase in tonnage of American registry. When the war ceases and the com- petition before referred to commences, it will be the privilege of the Unit- ed States government to aid ship owners to obtain their share of the freights then paid, be they high or low. What sort of protection, if any be necessary, shall be provided, and what changes in existing laws contain- ing burdensome clauses shall be made, remain to be seen and upon the lately authorized shipping board with its Tons. 28,600,000 16,400,000 3,000,000 48,000,000 4,000,000 44,000,000 55,000,000 44,000,000 4,500,000 48,500,000 6,500,000 extensive power depends such recom- mendations to congress as shall best be enacted. Announcement has not yet been made of the personnel of this board, but we have no doubt that it will be of high character and that it will pos- sess a general knowledge of the whole subject. Certainly the shipping board will have an opportunity to afford great assistance and encouragement to those who desire to own and man ships to carry our flag over the seas and to do our share of the world’s commerce without expending an undue amount of the $50,000,000 appropriat- ed for its use. In this connection it is interesting to note the establishment of the Bel- gian Shipping Co. under the auspices of the Belgian government, with a capital of 50,000,000 francs ($9,650,- 000), and of which all officers must be Belgian, born in Belgium; all stock- holders must be Belgian, and no stock- holder can be a partner or director of other companies of which the ma- jority is not composed of Belgians, born in Belgium. There has been recently one great change favorable to a firm establish- ment of an American merchant marine. For years the matter of marine in- surance has been mostly left to for- THE MARINE REVIEW 13 eign companies. As in other features of our business, we have been too busy with our inland matters to ap- preciate the worth of attention to marine insurance. Only six months ago we were told that ship owners must go abroad for their insurance and having had that habit for years it still was thought necessary. But we are now in quite a different position, for in- surance has been placed in this coun- try for large amounts on single ships, and, wonder of wonders, insurance is being placed here for foreign owners. Here we should note the result of our Own government’s operation of war risk insurance. From Sept. 2, 1914, to July 31, 1916, the United States government issued 1,539 pol- icies, insuring $138,392,389 on Amer- ican non-contraband cargoes, for which it received $2,904,886, with net losses amounting to $712,578, making a gross profit of $2,192,384. Deduct- - ing salaries and operating expenses of $32,982, leaves on policies issued dur- ing 22 months, a net profit of $2,- 159,416. Perhaps the government cost did not cover all of the charges to which private insurance companies would be subject, nevertheless the ex- perience warrants the careful atten- tion of insurers as well as insured. Nativity of Crews One of the grave questions that arises in consideration of the Amer- ican merchant marine is the one con- cerning crews. We do not suppose that at any time in the past crews of American ships were all native born, but it is quite certain that for a good many years the number of native born Americans serving on ships has gradually been decreasing. In 1909 about half of the crews on American ships were natives of the United States, while last year the proportion was reduced to 43 per cent. We believe that there still remains something of the romance of the sea and its sailing ships, and given a world-wide trade our ships will at- tract more and more of our natives to service on board. We also have the alternative, the employment of those of foreign birth who will be- come our citizens. Here, as in other industries, the kind of immigration matters greatly. Our laws covering the question of physical and mental fitness must be strictly enforced. It would then seem that our American ships would be attractive to the best of sailors of whatever birth. : It is to the credit of William C. Redfield, secretary of the department of commerce, that he called into serv- 4ce naval architects, ship builders, own- ers and operators to aid by confer-