Privately Owned Ships Solution to
U. S. Shipping Problem Says Lasker
By (freights would have soared even high-
ALBERT D. LASKER, Chairman
U. S. Shipping Board
The completion of the govern
ment's shipbuilding program found it
with, the following fleet:
Status of U. S. shipping board fleet
at delivery of last vessel, March 13,
1922:
Steel
No. D. W. T.
Tassenger and cargo ... 47 526. 13S
Cargo 1,238 S.779,702
Tanker S3 756,907
Rerigerator 1 13 91.1S3
Tugs 30
Totals 1,461 10,153,930
Wood
No. D. W T.
Cargo 237 872.941
Tugs 15
Totals 252 S72.941
Concrete
No. D. V. T.
2 6,500
7 48.7S3
Cargo
Tanker
Totals 9 55.2S3
Through the agency of the Emer
gency Fleet Corporation, (whose
stock is owned by the Shipping
Board, representing the national gov
ernment), the ships originally intend
ed for war purposes were, at the con
clusion of the war, under mandate of
congress, immediately put into opera
tion by and under the government, to
meet America's peace time needs
At Crest of Operations
At the height of its operations, Oc
tober, 1920, the shipping board had
1,317 steel ships plying between our
shores and those of foreign markets.
With the decline which has come in
world trade we are now (May 15) op
erating 447 steel ships, of a total of
3,675,614 deadweight tons, and have
9S3 steel ships, of a total of 6,57S,316
tons, tied up.
For the purposes of the future, in
surveying the government's fleet, ye
may eliminate the wooden ships, the
creation of which, Jto my mind, was a
colossal error that even war cannot
forgive. Certainly the then adminis
tration had ample warning through
Gen. Goethals of the tragedy of waste
the wooden ship program entailed
The wooden 6hip program to date
cost over $300,000,000, with unliqui
dated claims still to be adjudicated,
and made practically no contribution
to either war or peace carriage. They
rightly deserve the ridicule which has
been heaped on them.
Thus, the government's problem of
temporary operation and ultimate dis
position is involved in the 1,430 steel
ships which it possesses.
Hard Competition Abroad
When shipping board operations
were at their height Americaa vessels
carried 45 per cent of the value of our
in-and-out foreign commerce. Today,
with business depressed, we are car
rying but 35 per cent; this is due
largely to the fact that in times of
sore depression the nations with
either or both old established lines
and lower standards of living make it
hard for us to compete.
However, the 447 6teel ships the
government is operating today are
covering practicaally every trade
route in the world, insuring constant
access to the markets available for
the products of America.
Immediately after the close ef the
war had we not possessed the fOTern
meiit fleet there is no doubt that
r ihnn thev did: and today were
America's government owned ton
nage withdrawn from the seas our
traders would pay increased tolls to
foreign owners. So we must remem
ber that while the operation of the
fleet is costing us millions, it is sav
ing us millions in freights and insur
ing ns continuous relations with our
customers.
What Board Costs' Today
The Shipping Board including ad
ministrative expense, cost of tieup
and maintenance of its unused fleet,
and the operation of over 400 ships
Is being run at a cash outlay to the
treasury approximately $50,000,000 an
nually. This does not take info ac
count the cost of the ships and con
sequent capital charges.
It is true that overhead would not
be greatly increased if the operation
of more ships were needed to lake
care of America's trade. But my ex
perience as chairman of the Shipping
Board has caused me to realize, as I
never realized before, that govern
ment operation is as poison ivy in
the garden of industry.
Through checks and balances re
quired under government ownership,
initiative on the part of employes, is,
In large measure, killed or forbidden.
That inspiration which comes through
profit and the building for one's self
for the future is utterly lacking. So,
in the combined lack of initiative and
inspiration, there is not created that
vision which is necessary for perma
nent upbuilding.
Private Owners Did Better
1 do not want to be understood as
insinuating that the Shipping Board
is not today making a very good oper
ation of the ships it is running. Tn
its early history, however, because of
the vast fleet it had to run without a
properly trained organization, the re
sults obtained were by no means
those produced by private ownership,
and no one will so argue.
But I aver that under the Harding
administration the Shipping Board's
operation has become comparable to
the best operations of privately
owned ships. It is a blind American
who, at equal prices, with service
comparable to the best, fails to give
overwhelming preference to his gov
ernment owned ships, for they are
the best insurance he has of sure car
riage to his overseas customers until
private American ownership comes
ihto being.
The point 1 wish to emphasize,
though, is that government owner
ship, while today satisfactory for im
mediate needs, is not building up for
the future, and is overly costly in its
operations at all times.
Only Solution to Problem
While we are losing $50,000,000 an
nually in cash in operation, we are
wearing out the fleet, and in the
course of a few years it will be of
no worth. Nowhere have I heard any
voice suggesting that the government
build further merchant ships, and
only through private ownership can
we see hope of renewals and addi
tions that will be needed.
So while at the moment we are not
only Justified but our national need
demands that we continue the sad
losses of operation of the Shipping
Board until we can work out a na
tional policy which will insure the
passage of the fleet into private
hands, we have no excuse for not
immediately tackling our problem and
solving it.
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