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RANI AMMA eee ZUNE HE regulations governing ship- ping which England has worked out as a result of nearly three years’ war experience are particularly in-. teresting to American ship owners and shippers at this time. The following summary, prepared by a high British authority, shows the extent’ of this governmental control: “Some of the controls over British shipping instituted by the government, which have been in force during the past year, show to some degree the conditions under which our mercantile marine has been working. “(a) Fifty to 60 per cent, embracing every type of British mercantile ship, is under requisition to the government and employed in admiralty and _ mili- tary service at blue book rates, which admittedly are the very essence of limitation. “(b) All ships for the carriage of sugar cargoes and Australian wheat are put under requisition and paid for at blue book rates. “(c) Freight limitations have been and are in force as far as practicable per British steamers. “(d) All refrigerated ships and oil tankers are operated on government account and at fixed rates. “(e) All regular liners, not requi- sitioned, are under obligation to carry a fixed proportion of cargo at fixed rates of freight. “(f) Cargo steamers, not requisi- tioned, are directed to perform specific voyages and to transport specific car- goes on fixed terms and conditions. “(g) No British vessel over 500 tons gross register can proceed on ‘any voyage without first obtaining a li- cense for the specific voyage intended. Here, again, control is the order of the day, because licenses are refused by the ship licensing committee—of which I am a member—unless the particular voyage is deemed to be in the best interests of the national re- quirements and those of our allies. Shipowners throughout the United Kingdom know only too well how licenses have been refused for legiti- mate trading on many occasions, and low England Controls A soa a of as Month on Coasts and fo Bea for the Men Who Get the Business seerecencq i grennaenne enters Pe ee GARETT have accepted the licensing commit- tee’s decision without demur, know- ing that it acted solely in the best national interests with the knowledge it possessed, and that national inter- ests were supreme and paramount over all individual or other interests. “ch) A certain proportion of our mercantile marine is placed at the dis- posal of the allies for their emergent war demands at blue book rates. “G) The government has_ taken over —arbitrarily—as emergent de- mands arose—absolute possession of some mercantile ships building, or at work, most suitable for its require- ments regardless of shipowners’ pri- vate interests, and left the latter to accept its ideas of price or arbitrate. Why New Work Lags “(j) Shipowners having ships build- ing even under pre-war as well as post-war contracts have had to pay, owing to increased wages and cost of materials, substantial sums in addi- tion to their contract prices to enable the ships and their engines to be com- pleted. As regards these new vessels, which have no pre-war datum line of profits, they are only allowed, under the new finance act, 6 per cent profit on the capital and 4 per cent on the first cost of the ship; which is an al- together unsound and unremunerative basis, and has effectually prohibited the building or acquisition by private enterprise of further tonnage at exist- ing inflated prices, additional British ships are an urgent necessity. “(k) All shipping contributes to the state 60 per cent of any excess profits earned over the pre-war standard, plus 5s per £ of taxation, or, in the case of new vessels, the 6 per cent stand- ard on capital—after allowance of 4 per cent depreciation on first cost, which has for years been the basis allowed—and as shipping revenues are derived and profits earned principally . from foreign countries, all revenues to the state in the shape of taxes from British shipping constitute a material contribution to every man, 243 at a time when. al ler Shipping woman and_ child the United Kingdom. “(1) Every British ship has to con- form to certain regulations neces- sarily imposed in these abnormal times upon them, which add mate- rially to their working cost, as well as lengthens the time on voyages, which lessens their efficiency and car- rying power. “(m) No British vessel can be sold or transferred to anyone except Brit- ishers. “These are some of the controls under which the shipping trade has been worked during the past year, while in December, Sir Joseph Paton Maclay, who is one of the best known shipowners, was appointed to the high and important office of shipping con- troller, and is now actively at work at the admiralty. “I would take this opportunity of elucidating just exactly what ‘blue book’ rates of hire as paid by the government to the shipping trade are. These rates and relative terms were instituted and published in blue book form in October, 1914, based upon normal working expenses at that time by the admiralty arbitration board. I take as a ‘fair, ordinary illustration the common ocean cargo steamship of the popular size of 7,000 tons dead- weight carry capacity, familiarly known as a ‘tramp’. The government rate of hire works out about 6s 6d per deadweight ton per month, out of which all the running expenses, including wages, provisions, stores, repairs, renewals and maintenance, marine insurance, protection and in- demnity, management and_ superin- tendence, etc., have to be paid by the owners. The gross monthly hire of such a British tramp is about £2275, paid only so long as she is in an efficient working condition. The neu- tral steamer of the same class has been paid during the past year up to 45s per deadweight ton per month, employed in British trades for con- tinuous periods: of time, so that her gross monthly hire has been as high as £15,750, or close upon seven times throughout