150 REPORT OF THE COMMITTEE ON MERCHANT MARINE, 



maritime policy absolutely first in importance of the problems of peace already demanding 

 solution at our hands. This important matter should be taken up by Congress at once to 

 enable our shipowners and others interested to make the necessary arrangements to take our 

 proper place in the world's commerce. 



It is true that our vast enterprise of ship construction was undertaken essentially as a 

 war measure, just as was the huge expansion of our production of guns and shells, and all 

 the wide range of other war materials. But in the ships we are building there is a large ele- 

 ment of permanent value for peace, as well as of war service. With the restoration of 

 peace it is to be hoped that further need for guns and shells and other war supplies will be 

 minimized, if not ended. But that fortunate date will mark the opening of a period of new 

 and vital service to the nation for the ships we are now building as instruments of war. 



The figures expressing the activities of the United States Shipping Board indicate the 

 extent of the possibility of this new service. The National Foreign Trade Council has 

 pointed out in previous reports dealing with this subject the fact that it was the experience 

 of Great Britain, the greatest maritime power of the vporld during the last fifty years, that 

 less than 60 per cent of British foreign trade is carried in British vessels. In ordinary 

 times about 60 per cent of the carrying power of British shipping in foreign trade is em- 

 ployed in bringing imports into, and taking exports from, the United Kingdom, the remain- 

 ing 40 per cent being engaged in trade between foreign ports. This shows the extent to 

 which the shipping of a nation with a diversified foreign commerce must also be responsive 

 to the demands of the commerce of the rest of the world. Great Britain's experience indi- 

 cates that no nation with an extensive overseas trade will be able to transport all of its com- 

 merce in its own vessels, no matter how large and diversified may be its merchant fleet. 



In 1915, 1,871,543 tons of American shipping carried 14.3 per cent of our total for- 

 eign commerce. In 1916, 2,191,715 tons of American shipping carried 16.3 per cent of our 

 total foreign commerce. In 1917, 18.5 per cent of our total foreign commerce was carried 

 in American vessels, but for war considerations, the official reports have not included the 

 figures of the tonnage required for this transportation. 



On the basis of an American merchant fleet of 10,000,000 gross tons estimated at a 

 construction price of $75 per ton, a liberal estimate at pre-war rates, such a merchant fleet 

 would cost $750,000,000. But construction costs have risen enormously during the war. Much 

 of the new merchant fleet is constructed at costs well over $175 per ton, although no exact 

 official figures have been published by the Shipping Board. If, however, the average costs 

 were $200 per ton, the construction of a fleet of 10,000,000 tons would absorb only 

 $2,000,000,000. 



As a matter of fact Congress has appropriated $2,896,701,000 for the various pur- 

 poses of the Shipping Board, chiefly for construction, and has authorized the incurrence 

 of contract obligations to the extent of $945,549,000 in addition. The work of the Shipping 

 Board has thus been financed to the extent of $3,842,250,000, and there is pending a re- 

 quest from the Board for further extensive appropriations. The Board submitted estimates 

 to Congress for the current fiscal year aggregating $3,054,350,000, but Congress reduced 

 these estimates by nearly $1,300,000,000 in making the appropriation. The program of the 

 Shipping Board includes, of course, not only construction of ships under direct contract, but 

 the completion of requisitioned vessels, the repair of seized enemy ships, the financing of 

 shipyards for the fabrication of steel ships, a very large expenditure for the provision of 

 houses for the workmen at the shipyards, and other large items not directly charged to con- 



