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Mr. Harriman spoke on matters af- fecting the welfare of the shipping industry in which the chamber of commerce of the United States has been actively interested, including its most recent declaration, specially urging the importance in the pub- lic interest of continuing the policies under which American shipping has in recent years made splendid prog- ress; the necessity of supporting American ships by American ship- pers and travelers; the necessity for renewal of existing mail contracts with efficient contractors on a basis which will provide for a continuance of all essential services. The cham- ber also has strongly supported the elimination of government competi- tion with private enterprises in the shipping field, protection of coastwise trade against foreign encroachments, removal of handicaps to American shipping and uniformity of ocean bills of lading. In concluding his remarks, Mr. Harriman said, “It is gratifying to see steamship lines under the Amer- ican flag rendering passenger and freight service of the highest qual- ity and dependability. The policies which have made this possible are the result of awakened conscious- ness of Americans to the importance of our overseas shipping and their determination that a reasonable por- tion of our foreign commerce shail be carried in American bottoms. Cer- tainly there is every reason that these policies should be maintained, and to that end I pledge the support of the chamber of commerce.”’ Representative Briggs of Texas, said in part: Our Merchant Marine Policy “Our helplessness for want of an American merchant marine, having been demonstrated by the war, and our dependence upon ships of for- eign flags for the movement of for- eign commerce, and at a cost run- ning into billions for trade losses and cost of building yards, ete., in try- ing to provide an emergency fleet overnight, prompted the congress to determine that the American people should never again be without an adequate merchant marine. “The ocean mail contracts pointed the way to a discontinuance of gov- ernment operation, by not only re- ducing the government operating costs, but also insuring the mainte- nance of all essential trade route services by private operators, who not only agreed to carry all mail offered by the government at no ex- tra cost, but also obligated them- selves to build new ships and modern- ize the fleet, and to build them in American yards, even though the cost would be materially greater than if built in yards abroad; to build them according to plans and specifications approved by our navy, so that they 14 would be available as auxiliaries. “The government is also permit- ted to commandeer any of the ships in time of war or national emergency and to pay only the fair value at the time of taking, without regard to any enhancement of value by causes necessitating the taking. To facilitate service they are also liable to rate regulation. “Forty-four mail contracts have been made. Under these new vessels costing $300,000,000, have been pro- vided for by contract with privately owned lines, with reconditioning ex- penditures for other vessels of $22,- 000,000. The United States govern- ment today has the second largest merchant marine in the world; ris- ing from 2 per cent in 1913 to 12 per cent in 1931. This great, magnifi- cent fleet, carrying about 35 per cent in value of our seaborne foreign trade earns about $300,000,000 a year in freight revenue that used to be paid to foreign lines and which used to be spent abroad, but which is now spent in the United States in main- taining and _ supporting activities here and giving employment to thou- sands of our own citizens. Fair Ocean Freight Rates “Ocean freight rates have been held to the minimum by the existence of this great American fleet and it has resulted in a saving to Ameri- can farmers, manufacturers and ship- pers, estimated at from $1,500,000,- 000 to $2,000,000,000. We can de- liver our goods in any*world market in our own ships, and are no longer dependent on foreign-flag vessels. We have a naval auxiliary fleet, some- thing that we never had before. We have insurance against a repetition of the huge costs in time of war of building a fleet, and we have insur- ance against the delays and loss of trade experienced for want of ships. “Let us put this in concrete form, so that the people can understand it. To give some idea of what this means, it might be said that the an- nual ocean freight normally paid by American commerce amounts to be- tween $700,000,000 and $800,000,000 a year. Merely a 10 per cent increase in ocean freight rates would levy a toll of from $70,000,000 to $80,000,- 000 a year on American commerce, and some authorities think that it would amount to as much as 20 per cent. “Remember, the American people are entitled, not only to an adequate and modern American merchant ma- rine, with dependable service, but to such service at the lowest rates possible consistent with a fair re- turn upon the investment. Remem- ber, too, that unless you bring home to the American people, how critical the situation is today with reference to their merchant marine, unless you acquaint many of your new members MARINE REVIEW—February, 1933 of congress with the facts regarding the merchant marine of this country —how necessary it is, what it has cost to create, what it will cost this government if it is destroyed—unless you do these things, I say you are in danger of losing what this country and the government has done within the last 12 or 15 years, to give to the United States the second greatest mer- chant marine on the high seas.” Ships and National Economy Dr. Walsh of Georgetown univers- ity, in speaking on the function of the merchant marine and national economy, referred to the lessons of history in justification of our present merchant marine policy and met the plaint of foreign critics of our grow- ing merchant fleet by saying in part: “Tt has further been objected that American construction activities are increasing the surplus tonnage of the world and thus far increasing the disproportion between supply and de- mand. “From 1922 to the present day, the total number of ships built by Great Britain, the United States, France, Italy, Japan and Germany, has reached 2100 vessels, aggregat- ing 14,000,000 tons. Our contribu- tion to that alleged surplus was 96 ships of ocean-going type, of 2000 gross tons and over. On a parity basis we might justly have built 300 ves- sels. Our total new tonnage was only 840,000 tons out of those 14,000,000 tons, whereas a parity basis would justify over 2,000,000 tons. We have no Rex, no HurRopa, no BREMEN no NorMANDIE—only an occasional MAn- HATTAN and a rapidly detriorating LEVIATHAN for overseas service. “T fear that we shall never be able to fully satisfy all our critics until we starve our merchant marine back to its pre-war dimensions, when we had a bare 116 American-flag ships of 626,000 tons. And of those but 19 merchant ships, of less than 200,- 000 tons, were operating on Atlantic and Pacifie routes. “While readily granting Great Britain’s need of special facilities because of her far-flung possessions and her insular position, I still feel that the figures here quoted do not justify the fears and protests recent- ly expressed from London. It is, then, neither an unreasonable chauvinism nor an unsportsmanlike gesture to wish you courage, perseverance and eventual success in your laudable enterprise—the renaissance of an adequate American merchant marine with the concomitant restoration of our self-respect on the high seas.” The address by Homer L. Ferguson is published in-full on page 10. Ab- stracts of the remaining papers pre- sented before the sixth national con- ference on the merchant marine will be published in the March issue.