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Naval Architect’s Wiew (Continued from Page 10) we know no cne has yet collected and analyzed them. I am sure you will all agree that this must be done before a compre- hensive shipping program can _ be evolved. In other words, this society proposes to lay a foundation of facts on which such a program can be constructed, and to make the results of its study available to anyone in- terested in American foreign trade and shipping. Study of Shipping Program With this object in mind the coun- cil of the society directed the appoint- ment of a committee to make such a study. A committee was appointed and in the performance of its duties decided that the following matters were of importance in preparing its report, namely: 1. An analysis of facts regarding our existing merchant fleet as a whole so as to determine our probable sur- plusage of tonnage, and to establish the facts as to whether this sur- plusage is an asset or a liability for our future development. 2. An analysis of our present ton- nage as to age and replacement re- quirements; new tonnage built since the war, and new tonnage built by for- eign countries since the war, so as to present a factual picture of the status of our merchant fleet as compared with that of other nations. 3. An analysis in some detail of the modern vessels constructed under the provisions of the act of 1928 so as to endorse or otherwise their sat- isfactoriness as to type, size, speeds and other qualifications to meet the requirements of the particular serv- ices in which they are engaged. 4. An analysis of our new mer- chant fleet as to its satisfactoriness as naval auxiliaries, comparisons to be made wherever practicable with mer- chant vessels of foreign nations as to their suitability for naval services. 5. The development of an approxi- mate future replacement program from the information developed in the four previous paragraphs. 6. An analysis of the handicaps both in capital cost and in operation that obtain with American shipping in foreign trade setting forth as clearly as possible the facts with re- gard to both the cost of construction and operation with an analysis of the actual differentials in cost as they ex- ist, taking account of all known in- formation on this subject. 7. Analyze the known means, if any exist, of eliminating these differ- entials in part or in whole. 8. If the differentials cannot be eliminated analyze the alternatives which appear to be either government aid or government operation. Devel- op the facts so far as practicable as to whether the aids granted have 36 been sufficient to permit operation of American ships in competition with foreign ships on the same_ trade routes. 9. An analysis of shipping, both American and foreign, in particular trade routes, with a view to ascertain- ing as far as practicable whether American vessels on these routes are on a favorable competitive basis with foreign vessels on these same routes. Analysis of Trade Routes As the committee proceeded with its study it was found that there is information available from which most of the above analyses can be quite readily made, as related to the last item, however. ‘‘The analysis of particular trade routes,’ there has been so far as known no thorough analysis of our services in these routes as compared with foreign serv- ices. It is believed that this discloses a problem, a proper study of which would throw light upon the type, the size, the speed and other characteris- tics of ships that would be most de- sirable for a future replacement or addition to vessels now in these serv- ices. The committee, by request of the council of the society, at its meet- ing in November last has asked the shipping board to co-operate with it for a suitable analysis of the particu- lar problem. And I am glad to say that the ship- ping board will co-operate, and with- out that co-operation, gentlemen, I don’t believe we could get to first base. Programs of Ship Construction The committee has realized throughout that the outstanding diffi- culty in the operation of American ships in the foreign trade is the fact that the cost of ships in the United States and the cost of their opera- tion under the American flag is much higher than for foreign-built and for- eign-operated vessels, due primarily to the higher wage scales and the higher standards of living prevailing in this country. A study of the facts shows that an analysis of these differ- entials has been made by the Nation- al Council of American Shipbuilders, by the shipping board and by others, and while the committee has found nothing to change the findings of these bodies that the cost of a cargo vessel, combination vessel or oil tank- er to the shipbuilder in the United States would range from 50 to 60 per cent more than for the construction of vessel of the same type in Great Britain, it appreciates, nevertheless, that there are other factors entering into the situation at the present time that may substantially increase this differential, the two most important of which are: (a) Distressed conditions abroad and (b) Low rates of exchange. The shipbuilders abroad will take ships now for almost nothing. In explaining that low rate of exchange you need only to visualize the old MARINE REVIEW—March, 1933 value of the English pound, $4.86, with the present average of about $3.29, which means that a cargo ship which, if built in Great Britain, would previously have cost $486,000 in our money, would now cost about $320,- 000. Both of these conditions vary from time to time and should be eliminated in part or in whole as conditions im- prove. They are, nevertheless, fac- tors that must be taken into account. So far as the work of the commit- tee has developed, it seems to it that one of the most important develop- ments, as well as one of the most dif- ficult in American shipping, would be a reasonably uniform program of ship construction, as it is only by the maintenance of a permanent staff of technical and mechanical employes that the greatest efficiency and the lowest cost of production can be at- tained. Anything that can be devel- oped to this end will be most helpful. In presenting this paper to the sixth national merchant marine con- ference, it is for the purpose of ac- quainting the shipping board and others with the action the society has taken to throw some light upon this important subject and the co-opera- tion of this group in any way possible to that end is requested. I cannot close my remarks without commenting upon the international convention on safety of life at sea. This convention has been ratified by 11 nations and I understand that it went into effect on Jan. 1 a year ago. In the United States ratification is pending before the foreign relations committee of the senate. Hearings were held upon it last spring but to date no action has been taken by the senate committee. Members of the Society of Naval Architects and Engineers _partici- pated in the preliminary information and in the conference at London. The chairman of the committee on ship construction was one of our mem- bers. He played an important part in the adoptions of the convention. Its ratifications by the senate is, in the opinion of the society, a matter of very great importance, both because of the part played in bringing about an international agreement and _ be- cause of the fact that failure to ratify will subject American shipping in foreign ports to handicaps and em- barrassments, the nature of which cannot yet be foretold, but which will, nevertheless, interfere with the oper- ation of our ships in foreign trade. I understand that earlier confér- ences of this group have adopted reso- lutions favoring the ratification of this convention. It is of such impor- tance that in my opinion efforts by individual members of this group are not only justifiable, but essential to enlighten their representatives in the senate of the importance to Ameri- can shipping of the ratification of this convention, and I so recommend.