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Private hs aeded Must Be Encouraged by the Government if American Shipbuilders Are to Meet After-War Competition By M. E. Farr President, American Shipbuilding Co, NE of the greatest tasks con- QO fronting the world today is the replacing of ocean ton- nage destroyed or incapacitated for use, through war operations. The sinkings of vessels by enemy subma- rines do not represent the total de- struction of deep sea tonnage. The normal wear and tear, and the losses through collision, stranding and from other causes incident to operation under war conditions, have greatly reduced the world's tonnage. All of this tonnage must be replaced by the shipbuilders of the world, principally 'by Great Britain, Japan and the United States. Encourage Private Enterprise At the present time the energies of these countries are directed toward providing sufficient merchant tonnage to meet the war requirements and necessities of our allies. 'That our part of the undertaking will be per- formed there is little doubt, and at the same time a solid foundation for _ the development and protection of our foreign trade will be laid. In order to accomplish this vast pro- gram, the shipbuilder must have a free hand, unhampered by laws, re- strictions and exacting requirements frequently imposed by governmental -agencies, and he must also have the earnest co-operation of the govern- ment, labor and-.such manufacturers as are able to produce materials and equipment entering into the construc- tion of steel and wooden vessels. 'Private enterprise and initiative in shipbuilding and shipowning should be encouraged and fostered by our - government. The urgent demand for ocean ton- nage from foreign interests during the past two years led to the establish- ment of a large number of American shipyards, and the enlargement of ex- isting concerns. This prepared the way. for and gave stimulus to creat- ing greater capacity. to produce ocean tonnage. Our entrance into the war further increased these activities. Three shipbuilding plants of large capacity are now in 'course of con- struction by the shipping board. All the available shipbuilding skill Presented at the fifth National Trade convention, Cincinnati, April 19. Foreign 'The American and talent has been assembled to carry out a vast program of ship produc- tion. Special tools and equipment, far beyond the capacity of American makers, were necessary, and were, therefore, not immediately available for use. On account of the jimited supply of technical shipbuilders and __ skilled workmen, and lack of equipment, nearly every new plant has been de- layed in getting under way, and ship construction work inthe plants of going concerns has been retarded on account of the loss of important men to the new. enterprises. It is essential that shipbuilding plants be located where favorable weather conditions prevail, where the: climate is equable and housing condi- tions are ample and good, and where an adequate supply of skilled, semi- skilled and common labor is obtain- able. It is also important that such plants be situated on direct rail lines tapping fuel and material supplies, and in localities where economies: in construction costs can be_ brought about. In order to compete with our for- eign rivals after the present war is over, we must be able to produce ships equal in quality, cost and econ- omy of operation, or lose in the race for maritime supremacy or equality. shipbuilders must, therefore, prepare for the strong com- 'petition, by providing their plants with modern tools, machinery and equip- ment, and what is still more impor- tant, by creating technical and oper- ating organizations of the highest order and efficiency. _After-War Competition Our leading post-war competitors will be Great Britain, Japan and Ger- many, although other countries will take an important part in ship pro- duction. The great potential resources in labor and material in countries not heretofore engaged in shipbuilding, may yet be developed and these na- tions become powerful factors in ship production. The most reliable reports now ob- tainable show that the production of new ship tonnage overbalances that: A large amount of new destroyed. American tonnage will soon be avail- 248 able, and production will rapidly in- crease in volume until an ocean-carry- ing capacity is provided fully ample to meet war and commercial require- ments. : Comparative Labor Costs Owing to high wages and the pre- vailing standard of living, construc- tion costs cessive and compare unfavorably with conditions in Great Britain and Japan. The average daily wage for a 9-hour day in British and a 10-hour day in Japanese yards is as follows: Great Britain, Japan, Dec. 1917 1917 Skilled... <3 55 $2.16 to $2.79 75c to 90c Semiskilled .... $1.94 70c Unskilled .... 1.81 60c compared with the present wage for an 8-hour: day in leading American yards, as follows: Skilled <0 fi ou eee $5.80 Semiswiured' 2 fo cs a 4.40 UREN ied et la as 3.20 Piecework rates in American yards are proportionately higher. The standardization of ships has come to stay. This standardization may be applied to the conventional or the fabricated type. Variations in size and arrangement of steamers are necessary to meet the requirements of special trades and commodities, but in any event the ship should be of standard design. Recent reports concerning concrete ship construction are encouraging, and it is hoped that this method of con- struction will stand the tests of serv- ice and become an important factor in our merchant marine. A committee consisting of repre- sentative shipbuilders, similar to the council associated with the British admiralty, would be of great assist- ance to such of. our governmental agencies as are concerned in the pro- duction of merchant ships. While the production of ocean ton- nage may not have fully come up to the hopes and expectations of many, it must be remembered that the ship- building industry in America is in process of development and the con- struction program of the navy and the shipping board is vastly greater than ever undertaken by any nation. in this country are ex--