SUCCESSFULLY WITH FOREIGN SHIPS? 211 



carried int - effect. It is a moral certainty that without some form of government assist- 

 ance the existing handicaps under which our shipping operates are too heavy to be endured, 



Not being a sliipowner or operator, I feel a certain diffidence in expressing an opinion 

 upon the wage rates given by Mr. Marvin. I believe, however, we must face the fact that 

 the wages paid our seamen will always be higher than paid by our competitors, and it is one 

 of the many factors to be taken into account in formulating any legislation for the help of 

 our shipping. 



The question of insurance rates on both hulls and cargo has a large influence in the 

 operating costs of a vessel, and I am informed that it is cheaper to place such insurance 

 abroad than in America. I am speaking from hearsay, but if it is a fact that insurance is 

 more expensive when placed in this country and the situation cannot be altered through com- 

 petition, then this fact also must be taken into account in future assistive legislation. 



The Disarmament Conference now taking place in Washington, under which the num- 

 ber of capital ships of war will be limited, looks to me as tending to bring the merchant ship 

 forward as a more necessary adjimct to the cotmtry's ofifense and defense. If the nimiber of 

 our capital ships is limited, and the country enters into a state of war, the first thing we 

 must do to protect ourselves and our lines of commerce is to arm our fast merchant ships for 

 use as cruisers and to protect our slower freight-carrying vessels. We will be in a most un- 

 enviable position and a most serious situation if, through lack of help and assistance through 

 proper legislation, the American merchant marine is allowed to be dissipated and lost. A 

 strong and effective merchant marine is, more than ever before, necessary for our future 

 safety and protection, and the point I really want to stress is that the Shipping Board should 

 face the situation squarely and, realizing it is the controlling factor, come out boldly with a 

 program — even if it means a direct subsidy — for the support of our country's shipping and 

 make it possible for American shipowners to purchase Shipping Board vessels at a price 

 that, coupled with government aid, will allow us to compete with the ships of foreign 

 nations. 



One of the main factors in formulating this program is to find out the actual replacement 

 value of our ships, make the necessary adjustments to that price to meet the provisions of 

 clause No. 5 of the Merchant Marine Act, and, having determined a logical selling price, 

 offer these ships to American citizens, and, after a certain length of time, to any foreign 

 purchaser who can meet the terms of payment. By all means remove that menace of undi- 

 gested shipping that is now overhanging the American market and which handicaps every pri- 

 vate shipowner and deters him from venturing into new projects. 



Commander Stevenson Taylor: — I think I can assure the meeting that it is not the 

 idea of the Shipping Board to ask, for the ships they wish to sell, the old price of $165 per 

 ton deadweight. I would like Mr. Bennett, as a shipbuilder, to tell us what is his opinion 

 as to the price which should be asked for these ships, having due regard for the replacement 

 value at the present time, and having due regard also to the proper business-like way of 

 conducting such negotiations. 



Mr. Bennett : — The replacement value in the American market today is very hard 

 to say with any degree of definiteness^ 



Commander Taylor : — I thought you may have some idea 



