32 



DEVELOPMENT OF SHIPYARDS IN THE 



Table III shows the allocation of the shipbuilding ways of the country when the 

 Emergency Fleet Corporation was formed, giving the numbers assigned to steel and 

 wooden ships of 3,000 tons D. W. C. and over, and the number for barges and tugs 

 and small wooden and steel vessels under 3,000 tons D. W. C. It is to be noted that 

 the Navy occupied 40 of the ways for steel ships of over 3,000 tons capacity. The 

 Navy also occupied, as based on the most reliable estimates obtainable, 70 per cent 

 of the building capacity of the ways for steel ships of less than 3,000 tons capacity. 

 Of ways not occupied by the Navy, 90 per cent were occupied by keels under for- 

 eign and private domestic contracts. This gives an idea of the very limited facilities 

 available for the beginning of the Emergency Fleet Corporation program. 



Table III. — Shipyards in April, 1917. 



It is interesting to note the estimated value of the various t3^pes of yards en- 

 gaged in building ships for the Emergency Fleet Corporation. The total approxi- 

 mate estimated value of all the yards is $369,125,000; of this sum, the amount 

 furnished from Emergency Fleet Corporation funds is approximately $220,973,000. 

 It is impossible to estimate at this time the returns to the Fleet Corporation from 

 the sale and salvaging of the various properties in which it has invested capital. 

 Table IV shows in summary form the extent of Emergency Fleet Corporation par- 

 ticipation in yards holding their contracts. 



The problem of expanding the shipbuilding facilities was solved by enlisting 

 the initiative of existing shipbuilding companies in adding to their yards, and fur- 

 ther by encouraging private enterprise to enter the shipbuilding business. This was, 

 in general, done by negotiating contracts on terms sufficiently favorable to encour- 

 age enterprise. It must not be overlooked, however, that shipbuilders of the country, 

 as well as the owners of other industries, were more than willing to contribute all 

 their energies to assist in winning the war. 



The financing of shipyard plant construction was done through various forms 

 of clauses embodied in the contracts for ship construction. The early contracts in 

 general provided that the Fleet Corporation furnish funds for the construction of 

 ways and other shipyard facilities, which were generally of the most temporary 

 character. In other cases the Fleet Corporation made advance payments with the 

 understanding that the contractors had permission to use the advances in construct- 

 ing shipyards, the amounts of such advances being deducted from payments subse- 

 quently becoming due on ships. In these cases the cost of the yards was absorbed in 



