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July, 1916 would still be little more than half the total of British steam tonnage which, _ before the war, was about 45 per cent of that of the entire world. At a time when predictions are freely made that the United States will become the world’s banker and acquire the greatest share of the world’s foreign trade, a shipping, in the foreign trade, of from 6,000,000 to 10,000,000 gross tons would appear not an excessive goal to be at- tained 10 or 20 years hence. Unless such progress is made the United States will not become one of the foremost maritime nations. It is obvious that the rise of the United States as a «maritime nation must necessarily be accomplished by the transfer of a certain amount of ton- nage from foreign to American register. Indications are that after the leading maritime nations have made up _ the wastage of war the world’s tonnage will be adequate for world commerce. For the United States alone, by construction, to add say a million tons a year, for eight years, to the world’s shipping, in foreign trade, would cause shipping so far to exceed available commerce as to depress freights to a point where shipping would be unprofitable to all concerned. It would seem more feasible for this country to achieve a greater measure of shipping independence by a combined policy of purchase of foreign- built vessels and new construction in American ship yards, for precisely as the profitable operation of American shipping will be a national asset the de- velopment of American ship _ build- ing for this and other countries will strengthen the country’s resources. The Government Shipping Bill Advocates of the pending bill (H. R. 10,500) claim that it is a necessary first step to encourage the full development of: American “shipping: It «1s: ‘fair, therefore, to inquire just what the pro- posed policy will accomplish, and whether it will lead to, or permit, the further steps necessary to produce a really great American merchant fleet. Briefly stated, the bill as introduced by the Hon. J. W. Alexander, in the house of representatives Jan. 31, 1916, provides for the creation of a shipping board and the raising of $50,000.00 by issuing United States bonds, this sum to be expended in the construction, pur- chase or teasing of merchant vessels, which may be sold or chartered to pri- vate companies, or operated by the gov- ernment itself, and which may be taken by the government for the use of the army and navy in time of war. The shipping board is given all the powers over ocean transportation that the inter- state commerce commission exercises over rail transportation. No corpora- tion, firm or individual will be per- THE MARINE REVIEW mitted to engage in either domestic or foreign shipping in American ports without «a license from the shipping board. This means that the owner of every vessel, American or foreign, touching at American ports must obtain a license. No vessel will be permitted clearance unless its owners have such a license. If any vessel fails to com- ply with all the orders of the board regarding rates and service, rules and regulations, the board is authorized and directed to revoke the license held by the owners and this will, presumably, prevent clearance not only of the of- fending vessel, but of all vessels be- longing to that owner. This revocable Report Antedates New Bill “Since this report was formulated the committee on merchant marine and fisheries of the house of repre- sentatives on May 9 reported H. R. 15,455 as a substitute for H. R. 10,500. This limits the proposed regulation of shipping in foreign trade to supervision of conferences and traffic agreements, prohibition of deferred rebates, the use of fighting ships and discrimination between shippers and localities. The provisions of H. R. 10,500 for licensing all vessels clearing from Umted States ports, preferential railroad rates for merchandise to be exported in American vessels and prohibiting sale of American ships to non-citizens except by authority of the shipping board do not appear in the substitute bill. The authority of the government to operate the vessels obtained under the law is linuted to five years from the close of the present war and the char- acter of the trade in which private enterprise may operate the govern- ment-owned vessels is not de- limited. The substitute provides for a shipping board of seven in- stead of five members and like H. R. 10,500 authorizes the issuance of $50,000,000 of United States bonds wherewith to. purchase, lease or construct ships. Certain adminis- trative features have been addéd, and the shipping board empowered to regulate interstate water rates as rail rates are now regulated by the interstate commerce commission. license system is the power by which the board proposes to control all ves- sels, American or foreign, calling at American ports, and by which it is proposed to regulate ocean freight rates. Authority is given for preferential rail and ocean rates on merchandise to be exported in American bottoms. The bill provides that no vessel enrolled un- der United States laws shall be sold to any save a citizen of the United States. With the $50,000,000 derived from the bond issue, not more than 600,000 gross tons could be provided at existing prices, or less than one-tenth of the 245 minimum amount necessary to estabtlish the United States in the shipping posi- tion above described. Nothing like 600,000 gross tons is available from the new nations, which, during the war, permit alienation of their merchant vessels. American ship yards will not guarantee deliveries of new construction within two years. | Rear Admiral Benson has testified that the utmost government navy yards can guarantee, if, assured prompt deliveries of material, is six 10,000-ton ships in two years. The effect of the bill upon the country’s aspiration for larger ship- ping is, therefore, more important than its possibilities of immediate relief of the present restriction of American commerce. due to scarcity of vessels and abnormal rates. No Tramp Steamships Provided This bill appears to restrict the opera- tion of these government vessels (whether operated by the government or by private corporations) to trade di- rectly between the United States and foreign countries, that is, in the lan- guage of the act, to “use in the trans- portation of the commerce of the United States with foreign countries,’ and be- tween the United States and our dis- tant possessions; in other words, to service on certain fixed lines. It fails, therefore, to touch tramp shipping upon which the greater part of our exports and imports depend. The limitation quoted does not appear in the substitute bill H. R. 15,445. Either by direct operation or leases of the vessels to private corporations, the bill proposes to embark the United States in an industry normally costing more to conduct under the United States than under foreign flags, and to restrict that operation to what often proves the least remunerative branch of shipping—established lines. Under nor- mal conditions of peace private com- panies can be induced to operate gov- ernment ships only if the rate of lease or charter is sufficiently lower than the market or offsets higher American operating costs. Somebody must pay the difference. Under the proposed policy it will be the taxpayer, just as surely and completely as under a_ subsidiary policy. If, then, government aid is ex- tended only through leasing of govy- ernment-owned vessels, the American flag in foreign trade will become a gov- ernment monopoly. Increase of Ameri- can shipping, so long as operating costs exceed those under foreign flags, will depend upon the willingness of taxpay- ers to increase appropriations for new construction and continued deficit in the government shipping account. With the fullest conceivable accom- plishment of this law supplying less than