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Prompt A.ction in Naval Shipbuilding Will Stimulate Merchant Construction PEEDY and effective action, cutting S through all unnecessary red tape, which has since the beginning characterized the administration in Washington is again strik- ingly illustrated in the announcement that bids from private shipyards on the building of sev- enteen of the program of thirty-two naval ves- sels called for in the industrial recovery act will be opened July 26. This work in ship- building could not come at a more opportune time. Employment in the shipbuilding indus- try in the United States is now at the lowest point since the war. Estimates have been made that the naval program will assure employment for 50,000 workers over a period of three years, half in the shipbuilding yards and half in al- lied industries. The types of ships called for, including sev- eral smaller vessels such as destroyers, gun boats, and submarines, will make it possible for a wide distribution of this work among the smaller as well as the larger private shipyards. At least 10 shipyards located on the Atlantic and Pacific coasts are in a position to bid on some part of this work. In the announcement issued at Washington on June 19 by Henry L. Roosevelt, assistant secretary of the navy, on the opening of bids in July for the construction of 17 vessels in private shipyards, it was pointed out that 16 of these are included in the 32 authorized under the industrial recovery act, while the seven- teenth, a heavier cruiser, was authorized in 1929. Ag already generally reported the navy department will on July 6 open bids from pri- vate shipyards for the construction of four de- stroyers leaders, the total estimated cost of which will be about $12,000,000. These vessels were authorized in 1916 and are in addition to the seventeen vessels of the new program, thus making a total of 21 vessels for construction in private shipyards. Now that it has the authority, and with the employment situation in mind, the navy depart- ment can be counted on to lose no time in get- ting the work under way. Award of contracts is expected just as promptly as action can be taken after receiving and reviewing the bids. The remaining 16 vessels, it is understood, will be awarded to navy yards after all of the details of placing orders in private shipyards have been taken care of. It is possible that this program will be found somewhat more than the navy yards can readily take care of and private shipyards may be asked to help out in order to complete the program in time. The effect of this welcome activity in naval shipbuilding is certain to stimulate merchant shipbuilding. Much planning has been done in recent months for new merchant construction including tankers. These proposals, however, have been mainly of a tentative nature, the pre- vailing uncertainty of general business making the owners hesitate in placing orders. The two factors, widespread improvement in general business conditions now generally felt all over the country and the beginning of a naval pro- gram, should have the effect of bringing commercial vessel projects to a head. It is go- ing to be quite clear that prices are now at the most favorable point and that there is only one way they can go, and that is up. Placing orders now the owner is still in the position to negotiate with the shipbuilders on a most favorable basis because of his need of additional work. The shipbuilder is now at the peak of efficiency and all costs are at lower point than they are likely to be with continued improvement in business. Though shipping has suffered in much the same proportion as other business there are now many definite signs of improvement. Idle ships are again beginning to find employment. One instance among many might be mentioned. At the port of San Francisco, for instance, the May records. for general cargo handled show 815,734 tons which is the peak: month since October, 1931, and it is 21 per cent more than May of last year. More than 12 freight ships formerly idle have been placed in commission at this port. At Seattle 15 idle ships have gone into service. A number of additional freighters have returned to service at Portland, Oreg. On all sides there are signs of a pick-up and the shipowner will soon have the necessary in- centive to put his plans for new construction and renovation into effect. MARINE REVIEwW—July, 1933 {i