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have been ordered and’ more will follow. Editorial More New Ships Ordered HIPBUILDING is jomme in the © match S toward more business. Readjustment in this industry was unusually — severe, as much of the war work was handled by newly organized companies. When competition tightened, many of these firms dropped out willingly, while others fought on. Some new companies are now established, efficient units, while some old companies have been forced out. Those in business today represent the best of the companies which a few years ago were building ships without the restraint of competition. On the Great Lakes, the main shipyard revival has started. For some months, it has been obvious that the lake yards would lead the way. Replacement of tonnage onthe lakes was prevented by war condi- tions and later by war inherited price levels. prices down, the fleets must resume their active con- ‘struction to take the place of lost or worn out tonnage. With On the American side, four big bulk freighters have just been ordered and more are near the contract stage. Two passenger liners are also likely to be placed. On the sea coasts, several notable orders have been let. The volume of inquiry is huge, architects’ offices being busier than in any other periods in years. Many ‘small boats are up for contract, with coastwise pas- Some of the latter For deep senger ships also in demand. ' sea service, action on new ships is likely to be deferred unti! legislative action by congress orfthe subsidy. For an industry which has just passed through a year of stagnation, shipbuilding is showing excep- tional ability to recover. Overestimates on the Shipping Slump USINESS depression as applied to particular B industries is frequently easy to measure. The steel business, as an illustration, reports. regu- larly on the percentage of steelmaking capacity in oper- ation, and the number of active blast furnaces. But in the marine trade, a correct yardstick has been difficult to apply. As a result of this lack of precise knowledge, the past year’s slump in the marine field has likely been heavily overestimated. Records just obtained by MarINE ReEvIEW show that on the basis of vessel ton- nage in service, the shipping industry on March 1 was operating on a 49 per cent basis. This contrasts with a 20 per cent basis reached by the steel industry at the bottom of its slump. The 49 per cent basis of March 1 was a slight bet- terment over earlier months, while the May 1 figure will prove to be still higher. The shipping board at the opening of March was operating only 33 per cent of its ships. Privateowners were running 85 per cent, The reason for the overestimation in the marine trade is clear. Idle ships cluster in common anchor- ages and present impressive group evidence of inac- tivity. Industrial plants, widely scattered, do not pre- sent the same forceful picture. In the same way, active ships are widely scattered while active plants are gen- erally grouped. Last year carried a drab story for most American industries, shipping included. This year is telling a promising story. Shipping, as revealed by the above record, started its slump late, never reached the depths ‘plumbed by many other lines and is now among the leaders in the revival...” Experimenting with Public Funds ONSTRUCTION cost of the 23 passenger liners C built for the shipping board since the armistice has already reached $130,554,297.28. The indi- vidual 535-foot liners range in cost from $4,023,107.47 for the WersteRN: Wortp, just delivered, to $7,317,- 318.15 for the PRESIDENT JEFFERSON, ex-BEAVER STATE. The 502-footers range within a few thousand ’ dollars, the average cost being $4,086,000. Complete charges undoubtedly are not available on the later ships, so the fleet of 23 liners will represent a completed construction cost of about $140,000,000. As a government experiment, this venture sets a record for costliness which no American taxpayer will want to see equalled at any future time. The first cost is not the whole story, of course, since under gov- ernmental reins, operating costs run away with receipts. Passenger liners have been and are badly needed to complete American shipping. But the way to get them is through private owners, buying and operating under competitive conditions and encouraged by a ‘common sense congress rather than a liberal treasury. Farmers Change Sides on Subsidy UBSIDY in principle is opposed by American S farmers, if one may accept the American Farm Bureau Federation as the authorized spokesman. That organization has just endorsed the ship subsidy bill now before congress. The apparent contradiction is accounted for by the farmers’ decision that the for developing the American merchant marine as a naval auxiliary and as an agent in the development of foreign trade” outweighs the general harm of subsidy as a principle. The farmers approve temporary governmental aid until the flag is estab- lished on the high. seas. Opposition to the subsidy bill has not yet revealed itself in any substantial, organized form. When it does come, the farmer for the first time will not be found in the front ranks. “necessity 256 -