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Shipping Board Has Huge Sum Involved in Ship Plants—Liquida- tion Will Furnish Difficult Problem—Peace Checks Expenditures NVESTMENTS of the federal gov- I ernment in shipyards and shipping _plant facilities, exclusive of naval, today total $200,000,000 in round fig- ures. Of this amount the investment at the large Hog Island yard, Phila- delphia, equals about one-third. _While the greater portion of the so-called investments was made in shipyards proper, some of the money went into factory plants for fabricating ship plates and for manufacturing boilers, engines and equipment ma- chinery for merchant vessels. Over one-third of the total was invested in constructing homes for workmen and extending electric and other rail lines to transport workmen to the various yards. While these sums are classed as investments they really were made in the nature of loans or advances. ‘Pro- vision was made in _ the _ contracts whereby the government would ulti- mately be paid back or the property sold after peace to private interests at a fair peace valuation. In but one instance does the government own a shipyard outright. This is the plant located at Wilmington, N. C.,, and operated by the Carolina ‘Ship- building Co. for building steel ships. The Wilmington yard was not com- pleted at the end of the calendar year 1918, but it was estimated by the Emergency Fleet corporation that the total investment made there would be $2,000,000. ANY of the commitments for boiler plants and for factories to manufacture equipment machinery will not be fulfilled. After the of the armistice the Emergency Fleet corporation began cancelling contracts and these cancellations are still pro- ceeding. At the time of making its annual report to congress, the cor- poration planned to invest $10,500,- 000 for Scotch boiler plants and steel fabricating shops. Since making that report, however, the bulk of this item of investment has been wiped off, contracts cancelled, and the com- mitments charged up to profit and loss. The greater portion of this investment was to have been made in the plant which the Barber Asphalt Co. was to construct in New Jersey. Approximately $2,900,000 was to have been invested in a boiler plant in connection with the Newport News signing . Shipbuilding & Drydock Co., Newport News, Va. Advances were made to 41 different yards by the Emergency Fleet cor- poration during 1918 to enable those plants to extend their yards. The How Gigantic Shipyard Expenses Were Divided Of $3,000,000,000 appropriated for merchant ship construction, only one-fifteenth or $200,000,000 has gone into plant investment. About one-third or $80,000,000 was spent for transportation and housing projects, leaving $135,000,- 000 as the actual investment of the government in shipyards and plant facilities. The four steel fabricating yards took more than two-thirds of this $135,000,000, less than one-third go- ing into the expansion of private yards. Only one shipyard is owned out- right by the governmenit—the Caro- lina Shipbuilding Co. at Wilming- ton, N..C. Most of the advances made to private yards have now been repaid from withheld profits. Contracts in most cases provide for the government being paid back or for the sale of the property at a fair peace valuation. Shipyard investments will not be extended but commitments for building drydocks and repair facili- ties are on the increase. The armistice brought about. the cancellation of federal obligations in financing construction of equip- ment plants. ‘ Investments included sums ad- vanced to shipyards, steel fabricat- ing plants, drydocks, marine rail- ways and for housing and transpor- tation projects. corporation held a lien upon the prop- erty for the money so advanced. While these might also be counted among investments they have at this date been practically all closed out. The corporation was repaid by de- ducting the profits on the ships built for the government in these yards. The few advances which have not 71 been entirely paid off will be met within the next few months.. These advances cannot, therefore, be ac- tually counted among the investments of the government. T this date the investments in shipyards will not be extended. Investments made in equipment plants are being liqui- dated by cancellations. In another government’s direction, however, the government’s . interest in merchant shipping other than in ships themselves is being ex- tended. Commitments are being made for the construction of drydocks and repairing facilities at the various ports. The plan is to build three drydocks at Philadelphia, ten at New York, one at Baltimore and five at Boston. Negotiations are now pend- ing. At Philadelphia it is intended to advance 70 per cent of the cost of these docks to a private agency which is to build, own and operate them. This investment will be.paid back in 10 yearly installments, after which time the docks are to be owned out- right, ‘without investment lien, by the private agent. That the Emergency Fleet corpora- tion has been able to increase the shipbuilding facilities of the United States to such an enormous extent during the past year, without creat- ing an investment obligation greatly in excess of $200,000,000, speaks well for its executive management. The government has appropriated approxi- mately $3,000,000,000 for merchant ships, and but one-fifteenth of this went into plant. In comparison with the war department, for which con- gress appropriated billions to raise an army, the work shows up well. The war department did invest large sums in the construction of canton- ments, warehouses, embarkation depots, munition and clothing factories and other necessary plant equipment. And most likely the government will real- ize much less from these plant in- vestments when they are liquidated, than it will realize from the plant investments made by the Emergency Fleet corporation. Many of the investments made by the Fleet corporation, of a necessity, must be charged up finally to war risk and assumed by the government. At the yards it was necessary, for instance, to place armed guards, and SRA Soe a ee SE reer oe Een en See i ~ 2 :