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World Charter Market Reviewed by MAY BEA FACTOR American Fleet Now Promises Some Real Competition -- New Officers Immediately Reduce Overhead Cost HATEVER else may be said about Chairman W Lasker of the shipping board he has within the rst tew: weeks of his tenure of oiiice moved rapidiy and decidedly. Reorganization of the forces is an important step in advance. Steamship men are willing enough to give the new board a thor- ough trial, in fact, they still are inclined to be biased in its favor in many respects. The selection of Messrs. Love, Smull and Frey as vice presidents of the Emer- gency Fleet Corp. to direct operations shows at least the new board intends to deal directly with those old and tried channels of shipping management. The way these men have gone about their task is proof enough that foreign competitors may anticipate a real factor in shipping under the American flag. In the first place government ship values were cut and a number of operators authorized to insure their vessels upon the basis of $100 a ton. 'That should materially reduce the overhead cost of doing busi- ness. The old bulk cargo conference was abandoned and a chartering head appointed. The department of justice ruled that the China Mail Steamship Co. cannot operate in our coastal trade because Americans hold less than 75 per cent of the stock of the com- pany. The shipping board has authority to exclude foreign ships between ports of the United States and our insular possessions on the Pacific. Because the Egyptian conference refused to admit American vessels for the transportation of cotton from Egypt to the United States a defi was sent to the British threatening a rate war and an imposition of the dis- criminatory features of the Jones law unless this method of unreasonable competition is abandoned by the English. Close on the heels of this the shipping board requested congress to enact a preferential tariff duty on goods imported in American bottoms, and Senator Jones introduced the necessary bill. These are but a few of the outstand- ing features of the stiff backbone the shipping board has begun to show. Chairman Lasker estimates the gov- ernment fleet is operating at a con- siderable loss and he wants to find a way to fill the holds with cargo. The idle fleet alone is said to be cost- ing for caretaking $4,000,000 a year. The board has early begun its campaign to sell off its useless ton- nage, first offering the whole wooden fleet andAhen many of the ex-enemy vessels and other steel "ships. The prices offered for these may not be much but it is better to sink them than to have them tied up to their anchorage and thereby constitute a potential depression to the charter market, is the view. The new board has been slow to allocate ships under the old method since it has been in power. During July Begins Sale of Idle Fleet only 30 vessels, representing 231,506 deadweight tons, were withdrawn from caretaker and assigned for operation. Even the allocations of the new passenger boats building for the government were held up for 'review. At the same time a quick survey was made 414 of the giant LevraTHAN and it is understood a de- cision to recondition this ship and put her back in service shortly will be made. The understanding is that she will go to the International Mercantile Marine Co. for operation in conjunction with their large British boats, the Orympic, Majestic and Homeric. Seizure or the fleet of the United States Mail line for back charter hire was a step taken under the di- rection of Chairman Lasker which called forth the first criticism. It was ruthless to say the least, and the facts are yet to be placed before the public. The United' States Mail has 'started a fight in court, regained possession of the ships temporarily and is now offering to buy the vessels from the govern- ment. In shipping circles the United States Mail line has long been considered an outsider by the American Steamship. Owners association, and the shipping con- ferences. Now it appears it is to be considered an outsider by the shipping board. The seriousness of this trouble of the United States Mail line has been heightened by the fact that it comes during a serious depression in shipping. La Adier cep: 1, the first. cabin. rates will be reduced by the North Atlantic Will Cut conference lines 10 per cent. It is : . possible that.the second class rates First Cabin will be: redueed next summer in Rates order to. 'stimulate tourist travel. These reductions were expected, but to. offset them the steamship compan- ies have been slow to reduce wages aboard ship. Fol- lowing the acceptance of an open shop and a reduc- tion in the engineering. staffs, a similar reduction of 15 per cent was made in wages of mates and deck. staffs. The wages to be paid masters of American ships, will, hereafter be subject to individual nego- tiation and not bound by any fixed scale. This gradual tendency Cuts Appropriation toward an open HAIRMAN Lasker's_ request shop in steam- for $100,000,000 deficiency ship wages appropriation for the shipping board was cut to $48,500,000 by promrses 4a the house committee on appropria- healthy move for the American tions through elimination of $24,- merchant ma- -| 900,000 intended for payment of rine. Gulf ports claims and $27,500,000 "on the general conclusion that operating have discovered the new ship- costs during this fiscal year must ping board is bé 'less per ton than during the more interested Past fiscal year'. The bill as re- in building up ported by the committee specifi- ocean shipping cally states the money appropriated than it is' to is "for losses due to the mainte- build up a par-. hance and operation of ships and ticular Dordt: for administrative purposes." Re- Therefore they ductions in wages, subsistence, may not expect personnel, repair. costs, and fuel in the future and other economies are expected. any special con-