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gross tons, and will be fitted with steam tur- bine geared drives of 4000 horsepower for each vessel in single screws. It is interesting to note that three of the small tankers mentioned above with diesel drive and the two large tank- ers with steam drive are being built for the same company. + + + Fighting Subsidy Proposed For British Tramp Ships An official announcement has been made in the house of commons by Walter Runciman, president of the board of trade, to the effect that the British government is preparing to ask par- liament to grant a ‘‘defensive’’ subsidy not to exceed £2,000,000, for one year only, as an aid to British tramp shipping. The proposed sub- sidy is “for vessels carrying tramp cargoes un- der tramp conditions.’ Certain conditions are to be met by the beneficiaries before it becomes effective. The shipowners must work out a sat- isfactory plan to prevent the dissipation of such aid through competition among British ships. It must be effectively used in “‘securing a great- er employment of British tramp shipping at the expense of foreign subsidized shipping.”’ The shipowners who are to benefit from the proposed subsidy also have the added respon- sibility of negotiating proposals with shipown- ers in other countries for the adjustment of the supply of world tonnage to the demand so that freight rates may once more be raised to a re- munerative level. It is furthermore the aim to use the proposed subsidy in such a way as to secure the abolition of foreign subsidies. This is indeed a large order. That the subsidy is to be used to ‘secure greater employment of British tramp shipping at the expense of foreign subsidized shipping’’ is a bold statement. It is difficult to believe that it is intended to apply to American ship- ping. The purpose of government aid to American ships has been not to give an undue advantage but to equalize the basic costs of op- eration. These costs for American ships are admittedly substantially higher than they are for British ships and still higher than for the ships of other nations. In a similar manner it would be recognized as entirely fair that the British government should do everything in its power to equalize the cost of operation of its own nationals in world trade with those nations whose costs are less. Subsidies are only justified in fair com- petition when the objective is to make up for the differential in cost due not to inefficiency but to the higher standards of living which have a direct effect on all costs including bet- ter subsistence and higher wages for the men employed in building, managing and operating the ship. Subsidies are not justified where it is the intention to give a direct advantage over competitors and if granted for this purpose will encourage reprisals in one form or another. + + + High Speed Tankers Needed As Naval Auxiliaries With the bids to be received by the navy de- partment Aug. 15 for the construction of four cruisers, 14 destroyers and 6 submarines, the program of building the navy up to or near treaty strength may be said to be definitely on the way as far as fighting ships are con- cerned, but in addition to fighting ships the navy is in need of certain types of auxiliary vessels if it is to function with maximum effi- ciency. Tankers of over ordinary commercial speed are needed. Sometime ago it was actively proposed that arrangements be worked out with oil com- panies owning and operating tankers to under- take a program of building a total of 40 tankers with a speed of from 16 to 18 knots. Several of the oil companies indicated willingness to cooperate with the government in such a pro- gram. It was pointed out, however, that the ordinary commercial speed of tankers was somewhere around 11 knots and hardly over 12 knots. Since there is bound to be a sub- stantial difference in first cost and in operating cost between an 11 to 12-knot tanker and one with a speed of from 16 to 18 knots the com- panies properly held that the government should make provision for these extra costs. The companies were ready to meet the expense of such extra fast tankers up to the point of that for the ordinary commercial tanker and to supply the technical experience of their organ- izations for carrying through such a program. Such a proposition seems reasonable but nothing has come of it. If these tankers are needed for naval service, aS unquestionably they are, surely some way can be found for an equitable adjustment of the additional cost. Why cannot some action be taken now to ac- complish what is needed. It is clear that should the emergency arise a matter of this kind would be quickly adjusted but at such a time lack of prior action might be found to be very costly if not disastrous. Now is the time to cut the red tape and to carry through this program. MARINE REVIEwW—August, 1934 9