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Practical U. S. Ship Problems-V Efficiency in Operation, Management and Type of Ves- sels Are Essential in Successful Maritime. Ventures» the American merchant marine, and in view of the competition which it must meet, efficiency in three directions is most essential if the Uhit- I' RELATION to the problem of ed States hopes to win a place among the leading sea carrie:s. The three may be called operaton, Va ae of type. take the' 'results of an actual: voyage account so the relative" importance of the main items may be approximately borne in mind. The following shows percentages of expense for the voyage of a 10,000-ton ship out- with cargo and home iny ballast under the old pay scale; and costs, of 1920 for both subsistence and stores: : : Operating Rivense Wages 'and subsistence per cent 17.4 Buel OiLper Ceter ee: cc eee cS 48.7 Stores (deck and engine) per CONG Goues Nome Goce ce gees 380 69.4 Voyage Expense Posding and discharging cargo MEI CED ss lao Mellen see ats ss 7.4 Buying, loading and discharging ballast per. Centers. .. sce cu «be ' 6.6 i Port charges and sundries per CONE aw hovers ee a aceite eas -6 30.6 otal per cent aa. sees. eo onc 100.0 Under present conditions the cost of: these items would be about 20 per cent less, making operating expenses, proper, about 66.4 per cent and fuel 44 per cent of the whole. Under the revised scale of American wages now in effect, and allowing for 15 per cent reduction in deck officers pay now im- pending, the pay rolls of an American and British ship of about 8000 tons deadweight capacity will compare about as follows, with sterling at $3.75: emeroan ships). . $4,528.32 per month British ship 2,314.00 per month In other words American wages un- der the present shipping board scale are likely to be nearly double those of the British competitor. The difference in subsistence is more difficult to ar- tive at, but will not be less than 20 per cent in favor of the English ship. Two facts should be considered in this connection. A large part of the present differences is due to the de- preciation of foreign currencies, and with the gradual return to a gold basis whatever disadvantage we have from this cause will disappear. The return of England to gold payments would, if the present scale continued, auto- matically raise English wages 30 per Sie: 0p: 0.10, 010-9 ae ta\/s 6 0 As to operation it will be useful to : BY ROBERT EDWARDS ANNIN cent as compared with ours. This will not help any in reducing present handi- caps, but. is highly important in any broad view of the future. Again the American scale has not been accepted by private owners who declare that they' can not pay such wages. It is likely that whenever the present ar- rangements expire there must be an- other drastic reduction. In Better Position on Fuel Recent events make it probable that America shall be on a better relative fuel. basis, than ever before--for coal almost.certainly, and as to fuel oil for at least some years to come. To real- ize the importance of this it is only necessary to bear in mind the enormous per cent of operating costs chargeable to this item, The cost of subsistence could also be: decreased without injus- tice: to the personnel. It may be ex- pected that the disadvantages in these respects will gradually diminish, until America is at least on a better rela- 'tive basis than in 1913. American ships are financially handi- 'capped by laws prescribing the treat- ment of seamen. They must give a certain minimum housing space to the crew, which reduces earning space. They must provide a larger personnel than the British, and must not demand overtime except in special contingencies. They must not employ more than a given percentage of sailors unable to speak English; and all officers must be American citizens. The matter of advances on account of wages is regu- lated by law, and not by the discre- tion of the master. The humanity of these and similar restrictions need not be discussed. The effect on operation is 'undoubtedly to increase disadvantages already serious enough. The influence of some of these provisions upon discipline is disastrous, causing drunkenness, desertion, delay, Cte. : The item governing the employ- ment of officers and men is particu- larly hampering. Owing to the sud- den expansion of the merchant fleet and the resultant infusion of taw tre- cruits, the average experience and skill of American sailors in all grades is distinctly inferior to those of several nations whose sea activities and tradi- tion have been continuous. Give Ameri- 408 cans a generation of experience and training and they will equal their rivals 'in this respect, or surpass them as they have done before. But at present all departments, and especially the engine room, suffer from this cause. It takes time to turn a farmer or mechanic into a real sailor. One must have operated ships to realize the enormous effect of this upon the expense -account of a steamer, when a day's delay means the loss of hundreds or thousands of dol- lars. Quick turn-around is the key of success in operation, The responsibil- ity for readiness, loading and discharg- ing, and.all shore provisions for expe- dition belong to management. But no management. can accomplish a quick turn-around if the ship's operation be 'hampered by inefficient or insubordin- ate crews. or officers who cause. slow- ing down or stoppage at sea, or hold her idle in port. | As to management, this determines the quality of the efficiency of the shore work, which includes an infinite amount of detail, from the selection of employment, and fixing of rates, to' the signing on of officers and men and pur- chases of stores. The details of a ship's Management are never completed as long as she remains in commission. While she is performing one voyage, the ac- counts of that voyage always require attention, foreign agents must be ad- - vised and watched, disputes settled and her next business arranged. This work only can be done properly by experienced agencies, trained in the complexities of the business. Agents must be in close touch with hourly changing markets and clothed with power to act instantly in the case of sudden crisis or opportunity. The whole routine must be organized with three main objects in view--revenue, economy of expense, and economy of time. These are the whole science of ship management. The freight market is beyond human control. It is made by an infinite number of obscure and often unpredictable and imponderable factors. The best Management can only secure such net results as market condi- tions permit. But zealous guarding of Owners' interests in the vital matters of keeping expense and delay at the mini- mum are always both possible and im- perative in good markets and bad. In the former they increase profits, and in the latter they reduce losses in periods