212 HOW CAN AMERICAN SHIPS COMPETE 



Mr. Bennett: — I believe the best of the freight ships could be replaced today in 

 American shipyards for from $90 to $110 per ton. That, however, is not the point I wish 

 to make. It is not logical to set a replacement value of $100 per ton on Shipping Board 

 vessels when we can go abroad to the shipyards of Germany, France, Norway or Great 

 Britain and build the same ship for some $50 per ton. 



Commander Taylor: — Is that so? 



Mr. Bennett : — I believe it is. We have to compete with the foreign ships, and there- 

 fore we should bring the value of our ships down to the book value of our competitors, irre- 

 spective of whether it is different from what we can replace them for in the American market. 



The President : — This discussion seems to bring out the salient points. 



Mr. H. C. Towle^ Member: — I wish to state that as far as shipbuilding costs are con- 

 cerned I believe that the replacement value in this country today is lower than it is in Eng- 

 land. Within two days I have received actual labor and material costs from England on a 

 10,000-ton tanker and also on a 9,000-ton freight ship. In both cases they were from $6 

 to $8 a ton higher than some shipyards in this country can do the work for. 



The last speaker mentioned the Shipping Board vessels. We have in this coimtry a 

 large tonnage idle. If the ship operators — the American ship operators — can take these ves- 

 sels and operate them profitably, let them take them, even though the Government sells 

 them for $25 or $20 a ton, or less, and get them to work. These vessels then will establish 

 trade routes and the shipyards will come in later on replacements, the same as British ship- 

 yards will come in on replacements of their tonnage at a later date. 



Shipping men of other countries are afraid that the American Government will dump 

 these ships on the open market, and that they will be absorbed by their competitors, and they 

 are afraid more of that than they are of any other one feature in the situation. If the ships 

 are to be sold soon, I see no reason why the American ship operator should not obtain the 

 benefit of cheap prices. 



Mr. W. H. Mackay, Member: — As an American of forty-five years' experience, bom 

 here in the City of New York, it is only natural that I should feel proud of being permitted 

 by our government officials to operate as chief engineer, with a license of the kind stated. I 

 merely mention these circumstances so that you will understand that I have had the experi- 

 ence and know what I am talking about. The question of operating ships under the Amer- 

 ican flag is a very vital question as to the success of the American merchant marine. If 

 the shipbuilders and the ship designers continue to specify nickel-plated fixtures for the 

 crews, in addition to enamel bath tubs, porcelain wash basins, beautiful mirrors, three or 

 four systems of hot and cold water, and other accessories, such as linen sheets and linen 

 pillow-cases that have been stolen off vessels and sold in foreign ports during the great war 

 by the crews that we were compelled to sign on, most of them composed of the scum of Eu- 

 rope, then we might just as well close up shop and go out of business. During this World 

 War I have seen sailors, firemen and coal passers carrying ashore almost everything that was 

 movable and that could be sold in a foreign port, costing the owners thousands and thou- 

 sands of dollars to replace the same. Another great expense to the shipowners that could be 

 eliminated is the waste of fresh water. It was almost impossible to prevent the crew for- 



