128 EFFICIENCY IN THE OPERATION OF STEAMSHIPS. 
I presume he got them from the Shipping Board records. It is a very hard thing to com- 
pare figures obtained from the Shipping Board records with those derived from private op- 
erating. In handling Shipping Board ships, the Shipping Board naturally must have all 
operators conform with certain rules and regulations because it is a government institution, 
and it is difficult, if not impossible, for the board to give the wide latitude to the operators 
of its ships that a private owner will. 
We are only a small operator of ships, but we have an arrangement with the private 
owners who have placed their vessel property under our management whereby we have an 
absolute free hand in the management of their tonnage, and our reports and statements 
are in a very simple and brief form. In the management of Shipping Board ships I believe 
we have as much of a free hand as any of its operators, and by comparison we know that 
Shiping Board ships are very much handicapped in regard to expense as compared to pri- 
vately owned vessels. 
As to stevedoring as reflected on Shipping Board vessels, I believe there is a slightly 
higher cost on these ships than on privately owned vessels. Wages are the same, but the 
Shipping Board has a scale of contract prices which must be lived up to, whereas privately 
owned vessels’ stevedoring is either done by the owner himself, where all profit accrues to 
him, or he can negotiate with the stevedoring companies, which would be to the advantage of 
the ship as against the Shipping Board plan. 
Mr. James Donatp, Member:—I am sure we are all very pleased to hear from Captain 
Sullivan about the efficiency in operation of steamships. I would like to ask Captain Sullivan, 
referring to page 123 of his paper, if these three examples are for American ships built by 
American companies. I think it would have been interesting to have had some statement re- 
garding foreign ships, to see what the percentage is and if it compares with these three 
steamers. 
On page 124 the captain says: “The standard of living in this country is so different 
from that in foreign countries that it is absolutely unfair to compare American wages with 
those of foreign vessels.” Then on page 126 there is a very interesting paragraph where he 
says: “From a study of the data available, the writer is of the opinion that American ships 
can be made efficient, and excepting the excessive first cost, depreciation and overhead ex- 
pense, can hold their own against any competition.” I think the captain will have to include 
in those exceptions the cost of the wages, because on page 125 he gives a comparison of wages 
on different ships under different nationalities, and the American ships are the highest. 
So I would like to see a detailed account of how he is going to compete with the for- 
eigner if he excepts the first cost, the depreciation, the overhead expense and the wages. 
There is not much left. The captain then further says: “To accomplish this result, there 
should be closer relation between the executives of the companies and the masters of their ves- 
sels.’ I think Mr. Mallory will bear me out that the ship operator and the executives of the 
company work together very well with the masters of the vessels, and I do not see how he 
will make up the difference in operation between American ships and foreign ships, by having 
the executives of the steamship company working closer with the masters than they do at 
present. 
Mr. Joun L. Bocert, Member :—I think I can answer one of the suggestions of ques- 
tions brought up by Mr. Donald. I did not have time to have this blueprint (see table, p. 
129) turned into a slide, but I understand it will be incorporated in the Proceedings. 
