SUCCESSFULLY WITH FOREIGN SHIPS? 



205 



lished this government will require to step in and pay the shipowner the difference in cost of 

 wages between those existing on American steamers and those under foreign flags. 



We have heard a great deal during these last few years regarding the possibility of the 

 future American merchant marine, and too much general talk has been engaged in rather than 

 in obtaining the actual facts. 



My object today is to give you some exact figures showing the present cost of operation 

 between vessels of foreign countries and those of the United States. The situation looks 

 serious for the shipbuilder and also for the present owner of high-price tonnage, and as 

 long as we have sufficient tonnage afloat I am afraid that it will be several years before there 

 is a demand for new freight steamers. 



Table II. — Comparative Cost of Operation of 8,800-Ton Deadiveight Steamer Based on a 

 Value of $20 per Deadweight Ton, September 6, ig2i. 



British 



Pre-war 



Present 



American 



Present 



Crews' wages 



Victualling 



Administration 



♦Repairs 



♦Drydock, etc 



Deck and engine stores. 



Depreciation, 5% 



Insurance, Gfo 



Interest, 6% 



Loss hire, 10% 



$1, 256 14c 



494 5c 



277 4c 



400 6c 



400 5c 



350 3c 



733 8c 



880 10c 



880 10c 



567 6c 



$2, 222 26c 



883 10c 



300 4c 



1, 000 lie 



800 9c 



700 8c 



733 8c 



880 10c 



880 10c 



840 9c 



|3, 875 44c 



1, 085 12c 



1, 000 lie 



1,000 lie 



800 9c 



700 8c 



733 8c 



880 10c 



880 10c 



1, 095 12c 



6,237 



|9, 238 



|12, 048 



Cost per d. w. ton per month . 

 Charter rate 5/6 at $3.70 



70c 



11.05 

 1.0175 



$1.35 

 1.0175 



Loss . 



10.0325 



10.3325 



* Includes periodical surveys, local inspection, etc. 



The figures I am going to show you will prove to you that the present commercial 

 value of freight steamers of an average tonnage of 7,500 tons deadweight is $20 per ton 

 deadweight. In order to prove this I would refer you to Table II, where you will see that 

 the cost to the owner of chartering a steamer of 8,800 tons deadweight, tinder the British 

 and United States flags, as of September 6, 1921, when the exchange was $3.70 per £ 

 sterling, was $1.05 per ton for the British steamer and $1.35 for the American steamer — 

 please note that this is on a valuation of a vessel at $20 per deadweight ton. The charter 

 rate at this date, 6th of September, 1921, in the open market was 5s. 6d., which, at $3.70 

 per f sterling, equals $1.02. Therefore the British ship, as of September 6, 1921, is making 



