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World Charter Market Reviewed SHIPS SCARCE American lines to contract for new vessels—Combinations among ship companies are under discussion M ships. American vessels are nearly as scarce today as a month ago, although some relief is anticipated early in the year. In December the British released 10 per cent to commercial trades, and 20 per cent more on the first of the year. Many optimistic promises were made from Wash- ington, but those promises cannot be said to have resulted in any improvement that would warrant comfort to American shippers. Our government has released shipping, but of such a class as to keep American freights at a disadvantage. It has consisted largely of vessels which have been used in the New England coal trade, small steel vessels built on the Great Lakes and new merchant ton- nage produced for the Fleet corporation. Some: shipping men are not anxious to operate certain of these new boats because they insist that the vessels have not been properly built. One shipping man pointed out that one of the prize speed vessels has spent more time tied up for repairs than in trade. She is declared to be typical of much of the new steel tonnage which is being turned over to commercial uses. Most of the tonnage released by Washington con- sists of foreign vessels which have been operated under charter. Foreign vessels, consequently, are chiefly responsible for the easing up in the shipping world. Even the enemy merchant ships, which in- clude some 2,500,000 tons of German vessels in- terned at ports throughout the world, will be operated by the allied maritime council until ultimately disposed of by the terms of peace. These vessels will fly the flag of the council, a new insignia on the high seas. Approximately 500,000 tons of Austrian ships will carry Italian crews. ARITIME conditions continue to improve, thanks to the foreign nations in releasing Practically every passenger boat under the American flag and some Private freighters capable of being con- Ovnecshin verted into transports will be used F F by the American government to avored bring back troops. For this reason, the American merchant marine will be destitute of the so-called com- bination ship. Commercial travel on American boats will be almost an impossibility for several months. Some of the leading shipping men in the United States have not been slow to take account of the situation. Several private conferences have been held and within a few weeks, it is expected, definite recommendations will be made to Washing- ton as to the best method of conducting the merchant marine in the future. On two points they 48 all agree. The merchant marine must be developed under private ownership and operation and make- shift design and construction must cease, to be re- placed with ships of better: finish and more modern plan. - Such improvements in design, construction and — operation of ships as will be necessary to keep the American merchant marine upon a footing with foreign competition cannot reach its fullest de- velopment under present organizations. Combina- tions of interests must be expected. Rumors of such combinations in the American field are already being heard in the street. Fruition of these plans will be seen when the government’s control begins to relax more. Already some American lines are contemplating letting contracts for new ships. These vessels are to replace those lost in the war. War losses have been covered by the setting aside of funds which must be invested in new vessels before the year is out so that the funds may not be counted as in- come and subjected to the heavy federal tax. Foreign shipping interests, on the other hand, are attempting to let contracts with American yards — for new vessels because their trade demands the tonnage. Belgian and French interests want ships. American lines are beginning to realize that the release of all ship- Freight ping from the war control will not Rates fill the demands. This but’ ac: ‘ centuates the slight relief which Advance has been had in the foreign trade movement from the few vessels already turned back to _ their owners. The coastwise ships were the first re- leased, but those vessels owned by the railroads are still subjected to the control of the railroad ad- ministration. In the coastwise trade, therefore, the government controls the rates which are ex- tremely low in comparison with conditions gen- erally. Char; ters for -over- seas are just as high and as difficult to con- SUM Ma te, Freight _ rates have advanced, despite the somewhat in- creased amount of tonnage Release Ships ANKERS and small steamers not over 4000 tons deadweight are being released to commercial trades, “with the exception of cer- tain. vessels required for military purposes.” Each vessel is released on its next arrival at a United States port. The operation of such | space offered. released vessels continues to be sub- The shipment ject to control of rates and ap- of apples to proved trades, the shipping board retaining the right to requisition the vessels anew if military or other reasons should render that course desirable. The vessels to be released num- ber 44 of approximately 139,752 deadweight tons. The trades. in- volved are Central American, West Indian and coastwise England was one of the fea- tures ‘of ‘the past month, al- though it must be confessed that the price of the fruit will be high after the freight has