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* 9 man America's Maritime Sweepstakes Thirty Foreign Nations Participate of the United States is the most coveted commercial prize on earth, for American waterborne com- merce reached the stupendous figure of one billion dollars in a year. Thirty maritime nations raced for a share of this business, the world’s greatest commercial prize. The best we, the ereators of this commerce have been able to retain, has been about one third. All of the balance was carried in foreign flag vessels, and still is. Within the memory of some peo- ple now living, Yankee clippers car- ried better than 80 per cent of our overseas trade and a substantial part of the trade of other ‘countries. At the outbreak of the World war we were carrying less than 10 per cent of it—and actually had but 17 vessels engaged in foreign trade. For more than a year the organiza- tion which I have the honor of sery- ing as president has sought to awak- en a renewed interest in all that per- tains to the construction and opera- tion of ships, for it is a vital issue of the hour and one that is of the ut- most concern to every industrialist, agriculturist and banker in the coun- try. If proof were needed to support this statement I have only to eail your attention to the things accom- plished in the past five years since the signing of the Jones-White bill. Te ocean transportation business Owners Invest $78,000,000 While only 42 new vessels have been built, instead of the 60 provided for in the bill, these vessels, together with the 40 that were reconditioned, have given employment to more than 40,000 people in the shipyards and plants supplying the equipment. It put approximately two hundred mil- lion dollars into labor and material that would have otherwise remained idle, and out of this vast amount fully 80 per cent. represents money paid for labor in the yards and factories. This was not all government loans. The shipping companies have invested 39 per cent of the total amount ex- pended since 1928, which includes their initial payment of one fourth - of the construction costs and the re- payments on principal that have been made. Truly the shipping industry *Krom an address by R. J. Baker, president of the American Steamship Owner’s Association, at a dinner of the Propeller Club of the Port of Boston, held at the Hotel Essex, Boston, on March 22. By R. J. Baker* has done its part to aid industrial recovery. You have had ample evidence of that truth in the work provided for the New England yards. Some of the finest vessels in our modern merchant fleet have left the ways in your plants and the gainful employment provided for your mechanies and artisans in this industry has all tended to put New England among the sectional leaders to break through the fog of national depression. New England has been doubly fortunate in that it continued to enjoy a very substantial} share of the equipment purchased for ships built in other than New England yards. It has long been recognized that the American standards of wages and living both in construction ashore and in the operation of vessels at sea, are the highest of any nation in the world. No one would dare suggest that those standards be lowered even though they be two and three times the costs of like service and material in competitive countries. This is the situation that has made federal as- sistance necessary. The differential in construction and operation costs had to be absorbed if the American merchant marine was to be saved. Effectiveness of Shipping Act The merchant marine act has ac- complished the purposes for which it was intended: ‘‘that it is necessary for the national defense and for the proper growth of its foreign and do- mestic commerce that the United States shall have a merchant marine of the best equipped and most suit- able type of vessels sufficient to car- ry the greater portion of its com- merce and serve as a naval or a military auxiliary in time of war or national emergency.”’ This is clearly indicated in the re- cent report of Postmaster General Farley who stated: ‘‘The total num- ber of routes (foreign trade) under contract on June 30 was 44. Twenty- four of these routes were established and formerly operated by the ship- ping board. They are now being op- erated by private operators under mail contracts with a considerabie saving to the government.’ Continu- ing, the postmaster general states: “It is desired to emphasize the fact that the carrying of the mails is a minor or incidental purpose of these contracts. The development and MARINE REVIEW-—April, 1934 maintenance of an American mer- chant marine of the best equipped and most suitable type of vessels, sufficient to carry the greater part of the country’s commerce and to serve as a naval auxiliary in time of na- tional emergency—with the construc- tion of vessels in American shipyards, by American labor from materials produced in this country, the employ- ment of a large number of American seamen, and the retention of enor- mous sums paid as freight to Ameri- can instead of foreign companies— are the principal objects of these contracts.’’ Who could have made a fairer presentation for the shipping interests than this coming from the postmaster general whom many con- sidered apathetic to the development of an American merchant marine? The President’s Program It has been a source of much satis- faction to have enjoyed the co-opera- tion of the financial and legislative interests of the country in the five year struggle to re-establish the mer- chant marine. Further encourage- ment has been found in the construc- tive attitude of President Roosevelt and his expressed intention to inaug- urate a program that will insure such government support as may be necessary to make this country once more a factor in ocean transporta- tion. The United States is noting each move on the part of competitive countries who seem bent upon eco- nomic isolation. Unfortunately, the very policy that makes maritime in- dependence so necessary at the same time tends to reduce available rey- enue. This is where we stand at present, needing ships to be self-con- tained yet needing cargo to support the ships. There is only one answer to this apparent impasse of the seas. That is the fact that we, as a nation, create enough business to support a merchant fleet at least twice the size of the present establishment. There does not appear to be any logical reason why we should not ask that the American people support their own merchant marine. The substan- tial step taken in its restoration rep- resents a per capita outlay of only 17 cents and in return for the expendi- ture employment has been provided for some hundreds of thousands afloat and ashore and millions have been kept in this country that would otherwise have been spent abroad. 39