Maritime History of the Great Lakes

Marine Review (Cleveland, OH), December 1925, p. 472

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Recommends a Business Policy Dalton’s Report to the President Strong for Private Ownership— Sale of Surplus Ships—Separation of Board and Fleet Corp. N HIS report to the President on I the shipping situation, Henry G. Dalton of Cleveland, one of the foremost vessel owners and operators on the Great Lakes, comes out square- ly for private ownership and recom- mends that during the necessary transition period the Fleet corpora- tion operate the ships as a separate agency divorced from the control of the shipping board. He also recom- mends the prompt sale of surplus tonnage. Mr. Dalton’s report in full is as follows: I believe the nation now realizes the need of an adequate merchant ma- rine, both for the development and protection of our foreign commerce and for the requirements of the na- tional defense, and will support it. A restatement now of the determina- tion to establish and support a mer- chant marine will be helpful and time- ly. We have already made a good start with the ships engaged in coastwise and intercoastal trades, which under the wise laws existing (which should be preserved) restricting that. service to American built, owned and oper- ated. ships, are giving without other aid a fine, service. It is growing both in volume of business and in the number of ships. Foreign Competition Hard to Meet The foreign or offshore shipping, however, presents an entirely differ- . ent situation. It is probably the most competitive and complicated business we have to deal with, re- quiring, as it does, the knowledge of ships, their operation, traffic prob- lems and market conditions, port fa- cilities and regulations, and the navi- gation laws of the countries of the world over. For us to compete effi- ciently and successfully with the na- tions who have built up the large carrying trade of the world extending over generations—one might fairly say centuries—is no small a task and will require skill, patience, time and money to accomplish it. Governmental operation can never equal in efficiency or economy private operation. It seems unnecessary to enumerate the many reasons there- fore. It is an accepted fact. There- fore we should continue to make every effort to transfer to private owner- ship as promptly as it can be done the various lines .in operation; but this probably cannot be accomplished ~ until the services, one after another, are brought to a profitable operating basis or nearly so and until that time they must be maintained and operated by the Government. But during this period of governmental operation and in order to facilitate the transition from one form to the other, in selecting the shipping men to manage the operated lines care should be taken to secure those who have substantial business prospects and experience in foreign shipping, with the view that they may eventu- ally take over the ownership of the property and business they are man- aging. The sale of any line should carry with it a guarantee of its con- tinuance for a reasonable number of years. Such provision has been re- quired in recent sales. : I believe the consolidation of some of the services would be advantageous and in the line of economy, and I suggest also that further study be given to that feature as well as to the policy now in force with respect to remunerating managing operators for their service. If some method were devised whereby these manag- ing operators could become interested in the operating profits and losses of their respective fleets, benefit would result therefrom. A considerable ex- penditure now made for overhead su- pervision by the shipping board would be unnecessary if such a plan were adopted. Allow Railroads to Opérate Ships The removal of the restrictions for- bidding the railroads to own and op- erate ships in international trade would also be helpful. It would both extend the transportation facilities of our foreign commerce, and the ships employed, assuming them to be of American register, would be suitable for the needs of the national defense. This and any other avenue of aid in upbuilding: the merchant marine should be encouraged. The tendency of world shipping is now toward the regular operation of the cargo liner on specific routes, It is agreed that the trade routes now being served are covering adequately with suitable ships the present needs of our foreign business. There is some difference of opinion as to the proper number ‘of ships that should _ be in service on some of these routes. - 472 It is also likely that as time goes on there will be need of change in the trade routes to be operated, either by add- ing new services or discontinuing those which after a fair trial are found either too costly to maintain or to be furnishing unnecessary service; ‘but both of these matters will be satisfactorily dealt with by a good management. I recommend that the department of commerce, which has close contact with and access to the best govern- mental knowledge of the needs of com- merce and industry as a whole and, which is also best fitted to determine the policy, needs and adequacy of these trade routes, should hereafter be consulted concerning any change of the present routes, the addition of new routes or the discontinuance of. old ones. Passenger Liners Needed Cargo ships of the liner type are now available is sufficient « numbers to serve the present needs of our foreign commerce and while this type of ships also will be useful to some extent for the requirements of the national defense and the mails, these latter services will require ships with greater speed and _ provisions for carrying both passengers and cargo and provision of such ships should receive careful consideration. Co-op- eration between the departments of the army, navy, commerce and post- office in selecting the types of ships to be used on the different trade routes should be encouraged. In a recent survey it was found that there are sufficient ships avail- able in the existing fleet to provide for the present and nearby future needs without the necessity of re- placement with new tonnage in any material amount, but to take care of changes in and growth of trade, obso- lescence of the present fleet, etc., new ships will eventually be required. The adequacy of the present fleet is based upon the assumption that the plan for the dieselization of a sufficient number of ships in the existing fleet to be used in those routes where they will be most serviceable and economi- cal in operation will be carried out. When greater need arises the require- ments for the different governmental agencies that are not adequately met by the present fleet can be . provided. I suggest that consideration be

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