OPERATING PROBLEMS OF THE AMERICAN SHIPOWNER. 25 
liberal allowance for depreciation for shipping, thus placing us more nearly on an equality 
in capital costs with our competitors. President Harding’s policy of prompt diversion of 
the army and navy transport services to the merchant marine is made possible in the new legis- 
lation. An extension of the coastwise law to the Philippines is certain to have the same bene- 
ficial effect on shipping and trade as the extension of the coastwise law to Porto Rico and 
Hawaii. 
What shipowners and operators are probably thinking most of, because they can meas- 
ure its advantage in dollars and cents, is the direct aid of the new bill in the form of compen- 
sation or encouragement to both cargo ships and mail ships. This is the feature of the new 
proposal that is most actively discussed. It is the part of the bill that must meet the sharpest 
opposition. But let nobody imagine that this direct compensation was put into the bill to be 
pulled out again. Without the direct aid of the proposed compensations or subsidies, the 
great effort of the nation to solve its shipping problem cannot and will not succeed. The 
indirect aids are themselves inadequate. If the nation is going to help its shipping it must 
help it effectively and not place it half-way on an equality with its overseas antagonists. 
Nothing less than complete action will suffice. 
We recognize frankly that, though we need all this entire measure of government help 
and can do nothing of ourselves without it, nevertheless we cannot lean on government aid 
alone. Given all these improved conditions, the problem of the American merchant marine 
must, after all, be actually worked out by American shipowners, operators and build- 
ers through their own exertions. We must win our own success, achieve our own destiny. 
We must be quick to distinguish and adopt the newest and best ideas of ship design and con- 
struction. We must operate our ships with the utmost possible enterprise and economy. 
Uncle Sam is not a Santa Claus. He is giving us no gift, no bonus, in this shipping 
legislation. All he does is to try to assure for us a fair, even chance in competition. A fair 
chance is something which we have not had for sixty or for seventy years. If this bill passes, 
we will have it, and then it will be up to us to make such use of it as was made by the 
shipowners, operators and builders of the brilliant half century before the Civil War. They 
were given a chance. They took it, and they made such glorious use of it that the maritime 
world has not yet forgotten the years when American ships embodied the highest efficiency 
and success the world had ever seen. What we will have to do now is to prove ourselves as 
good men as our predecessors in this industry. 
DISCUSSION. 
THE PRESIDENT :—We all thank Mr. Smith for his kindness and courtesy in reading this 
valuable paper, and it has given an opportunity to any who had not read it before coming 
here, to go over it carefully and see exactly what the paper covers. It is thoroughly in line 
with the speeches that we heard at the dinner and is on the most important matter for all of 
us, as shipowners, ship operators and builders, namely, what to do to bring about the revival 
of the American merchant marine. 
