SUCCESSFULLY WITH FOREIGN SHIPS? 203 



Moreover, it is essential that the classification and survey of American merchant ship- 

 ping in the years to come be controlled by interests 100 per cent American. The success of 

 the American Bureau of Shipping is absolutely essential to the prosperity and security of the 

 new American merchant marine which must also find in American hands the resources for a 

 major part of the underwriting of the ships themselves and of their cargoes. Only the other 

 day British marine insurance companies were assisting the Liverpool conference lines to retain 

 complete control of the Egyptian cotton trade by allowing British ships much lower insurance 

 rates on cotton cargoes than were being granted to American ships. The protective value 

 of classification, survey and insurance of our own is a point that cannot possibly be over- 

 estimated in any study of the future of the American merchant marine. 



American shipowners must develop, as rapidly as possible, what their fathers possessed 

 before them, a corps of the most efficient seagoing officers in the world, every one an Ameri- 

 can citizen, and the largest possible number of citizen seamen. The American people will 

 never consent to protect and encourage American shipping as it must be protected and en- 

 couraged so long as any substantial proportion of that shipping is officered and manned by 

 alien subjects of foreign countries, our rivals in trade and possible enemies in war. Who can 

 justify a merchant marine as a naval reserve unless it is securely held in loyal hands, and not 

 in the hands of those who in an hour of need might betray it to the enemy? 



DISCUSSION. 



The President : — The author of the paper just presented, "How Can American Ships 

 Compete Successfully with Foreign Ships?" as you all know, is not only a writer, but a 

 thinker along the lines of the subject which he has put before you. He also occupies a very 

 prominent position as an executive of the American Steamship Owners' Association. I feel 

 quite sure that the subject, presented to you in this way, will not only be of great interest but 

 will elicit some illuminating and profitable discussion. The paper is before you, gentlemen, 

 for action. 



Mr. James Donald, Member: — Mr. President and gentlemen, on former occasions when 

 I have appeared before this Society it was in the capacity of a naval architect for large 

 American shipyards, and my remarks then related to the technical subjects after an experi- 

 ence of thirty years in the shipbuilding business. 



I am now addressing you as a member of this Society and with five years' experience 

 in the actual operation of merchant steamers. 



Formerly I looked at the operation of steamers more from a naval architect's point of 

 view and hope that I will be able to interest you now from another point of view, namely, 

 the ship operator's. 



We are all indebted to Mr. Marvin for his paper, and for bringing before us the ques- 

 tion as to "How American Ships Can Compete Successfully with Foreign Ships." He has 

 given you a scale of wages under the American and other flags and, even at the normal rate 

 of exchange he has used, the cost of operating is more expensive under the American flag 

 than under any other. To show the effect that the exchange has on these schedules, Table 

 I herewith will show you the actual wages per month for a Norwegian vessel of 10,880 



