Shipping Board for the fiscal year ended June 30, 1925. The first part is devoted to the Shipping Board, which describes its organization, general scope and functions. Chapters are devoted to the work of the different bureaus, such as traffic, regulation, operations, the latter including industrial relations, piers and wharves, investigations, and port facilities; construction, law, finance, research, legal department, which latter covers litigation, contracts, opinions, recoveries and special assignments and admiralty division.

The scond part is devoted to the Emergency Fleet Corporation, its management, operations, traffic, and finance, the separate divisions of which cover the entire range of the Fleet Corporation's work.

The appendix, covering thirty pages, contain thirteen. separate tables, dealing with vessel property, status of vessels, and recapitulation of vessels owned and controlled by the Shipping Board; managing operators, and charterers of Shipping Board vessels, assignment of vessels for passenger and cargo service, analysis showing total vessel property acquired by the board and the disposition, of it; tables showing its financial transactions, and details about employes, number "separated" from the service during the past year, and a list of the officials and employes of the Shipping Board that also gives their compensation.

We plan in future issues to take up different parts of this report, the bare recital of its features here really giving only the most cursory information regarding details of unusual and really fascinating interest, all showing a commendable tendency to establish the maritime interests of the United States upon a broader and sounder foothold, so that in time they may become one of the greatest of the nation's possessions.

The Davis Report

I.

No one, desirous of learning the truth about the United States Shipping Board and its Emergency Fleet Corporation, their operations, policies and affairs, should fail to obtain and carefully read the report of the select committee of the House of Representatives, apppointed nearly two years ago to investigate the Shipping Board and the Fleet Corporation. There are majority and minority reports.

Our present consideration is devoted to the majority report, as presented by Representative E. L. Davis, of Tennessee. The report recites the laws and resolutions leading to its appointment and states that the activities of the committee began in March, 1924, and probably concluded with the presentation of its report on Dec. 14, 1925. The scope of the inquiry is summarized in forty terse paragraphs that occupy four printed pages. This is followed by an historical review-sketch might have been better word-of "the former eminence of American flag ships in the foreign trade, or the decline and the reasons therefore," the greater part of which relates to the Shipping Board, its activities and accomplishments.

The Merchant Marine (Jones) Act of 1920 is also referred to, and "shipping board vessels in operation" shows that on January 1, 1920, 1,165 steel cargo vessels of 7,262,125 deadweight tons, 43 tankers, of 385,295 deadweight tons, and 317 wood cargo ships of 1,034,371 deadweight tons, a total of 1,525 ships, 8,681,791 deadweight tons "were in commercial operation under the Shipping Board." On July 1, 1921, only 745 ships, of 5,154,379 deadweight tons were in operation. On June 30, 1922, the number in operation had dwindled to 391 vessels; and on June 30, 1923 the number was 386. On January 7, 1924 (when Admiral Palmer took charge) there were 395 vessels; on June 30, 1924, the number was 345; on June 30, 1925, the number was 277, and on Aug. 31, 1925, the number was 243, including 15 passenger vessels. But on Dec. 3, 1925, the number had increased to 276 vessels in operation, with approximately 900 laid up.

The report shows the precentage of our foreign commerce carried, which was about 51 per cent in 1921 and 1922, and 40 per cent during the first six months of 1925. "For the fiscal year ending June 30, 1925, 36.2 per cent of our exports and 31.4 per cent of our imports were carried in American vessels," says the report. A great many people will be surprised to learn that the net profits from the operation of Shipping Board vessels from inception to June 30, 1920, totaled $508,090,626.80.

A note analyzes the statement of net profits, and shows that after making allowance for various things, including a deduction of 5 per cent for interest and 5 per cent for depreciation, on steel ships valued at $200 per deadweight ton, and 71⁄2 per cent depreciation on wooden vessels on a valuation of $125 per deadweight ton, "there would still be net profit from the inception to June 30, 1920, of $287,633,986.98. While this period was one of exceptional high rates and risks," says the report, "it was also one of unusually high and exceptional expenses." The expenses and losses from operation of Shipping Board and Emergency Fleet Corporation ships, and other activities, calculated on the same basis as that explained with respect to the foregoing periods, for the subsequent years, were as follows:

From July 1, 1920, to June 30, 1921. .$36,274,653.26 From July 1, 1921, to June 30, 1922.. 35,617,139.40 From July 1, 1922, to June 30, 1923.. 28,617,737.37 From July 1, 1923, to June 30, 1924.. 41,196,394.59 From July 1, 1924, to June 30, 1925.. 30,063,788.24 A note states that "the figures for the last four years do not include the cost of the care of the laid-up fleet, but do include all Emergency Fleet Corporation expenses, including salaries and other expenses of the Washington and district offices." Then the report says:

"It will thus be noted that the net profit of Shipping Board and Emergency Fleet Corporation operations from the inception in 1917 to June 30, 1925, amounts to $336360,903.93."

In our next issue we will resume consideration of the Davis report.

WHEN the steamship

W Saugus, the last

of the eighteen vessels purchased by the Export Steamship Corporation from the United States Shipping Board for direct operation in its Mediterranean service (known as the American Export Lines), sailed from New York on December 24, 1925, with a full cargo for the ports of Malta, Alexandria, Jaffa, Beirut, and Piraeus, it completed an importan: epoch in the annals of the American merchant marine.

The purchase of the service, known as the American Export Lines, by Mr. Henry Herbermann, President of the Export Steamship Corporation, is still fresh in the memory of all of those who are interested in the carriage of goods in American bottoms. This agreement was signed on August 14, 1925, and covered the purchase of eighteen splendid steamships, all of recent construction and in the pink of condition, having a deadweight tonnage of 141,288, at a price of $7.50 per deadweight ton. The names of the vessels purchased, together with

HENRY HERBERMANN

President Export Steamship Corporation

The port registry of the above vessels has been changed to New York.

Under the purchase agreement Mr. Herbermann is obligated to maintain the services purchased for a period of five years, which, in view of the financial showing of the Shipping Board operation, apears to be, of itself, a financial obligation of considerable moment, but one, nevertheless, that' Mr. Herbermann was convinced from careful study could eventually be made to pay a fair profit, while at the same time assisting in finding, holding and developing new markets for American products, in increasing American purchases from the vast area known as "the Mediterranean," and its tributaries, and in successfully establishing the American flag on ships built in the United States and owned, operated and manned by its citizens.

Mr. Herbermann services take on a glamor and a romance because they cover that area of the world in which civilization had its dawn, and where for over 5,000 years the people of that area have developed maritime intercourse-trade by sea is in

How To Help These American Ships

Naturally, those interested in the success of the American merchant marine- and their number, thank God! steadily grows are asking, "how can this be accomplished without heavy financial loss; and what can those interested in the success of the American merchant marine-really every American citizen-do to assist Mr. Herbermann in making a success of his colossal venture?" They the people should see to it that their exports destined for ports of the Mediterranean and its tribtaries, should be carried in American flag ships; and the things we import from that same area should come to us in American flag ships. The press should call attention to the fact that a great fleet of American ships is doing precisely what they long have demanded should be done demonstrating that American ships can succeed in for

eign trade-and that the American people owe it to them to make sure that this experiment is a permanent success. And what can the Government do to help make a success of this great American maritime venture in foreign trade? How Uncle Sam Can Do "His Bit"

of

One means which the Government has at its disposal with which to promote this great undertaking, is in the application of the provisions of the Ocean Mail Act of. 1891 to the ships of the American Export Lines. This Act provides for the transportation of United States mails at a fixed rate per mile by the shortest route for vessels classed in accordance with their speed and tonnage. This Act, for thirty-five years a part of the laws of the United States, is intended to promote the carriage of the mails to foreign countries through the employment American flag ships. Under the original provisions of that Act of a generation ago, the responsibility for making mail contrac s rested with the Postmaster General. Under the provisions of the Jones Act, of 1920, that responsibility still remains with the Postmaster General, but it is shared, now, by the United States Shipping Board, acting in unison with the Postmaster General. Recently the Shipping Board passed a resolution, subject to the concurrence of the Postmaster General recommand vessels of the American Export employed in the carriage of States mails to Mediterranean/ ports, at the rate of 66c per outward voyage, in conformance visions of the Ocean mail Act class "4".

For the carriage of United the following services are available:

States mails,

WEST COAST OF ITALY-24 sailings per annum, calling at the ports of: Marseilles, Genoa, Leghorn, and Naples, and homeward via Sicilian and Spanish ports.

NORTH AFRICAN SERVICE-12 sailings per annum, calling at Casablanca, Tangiers, Ceuta, Melilla and Oran, and homeward via West Coast of Italy and Marseilles.

MALTA/ALEXANDRIA SERVICE-24 sailings per annum, calling at Malta, Alexandria, Jaffa, Beirut and Piraeus, calling at Salonica and other Greek ports and Smyrna for homeward cargo.

BLACK SEA SERVICE-12 sailings per annum,—and homeward via Greek and Syrian ports or bringing manganese ore from Russian Black Sea ports as circum

stances warrant.

In addition to the above, under an agreement between the Shipping Board and Liverpool Liners, Ltd., vessels of the American Export Lines cover the cotton berth at Alexandria alternatively with foreign flag vessels controlled by the Liverpool liners.

At the present time the mail from the territory served by the vessels of the American Export Lines is carried in foreign tonnage, in many instances necessitating transshipment at foreign ports. Correspondence from agents and masters of vessels operated by the American Export Lines mailed at foreign ports, frequently arrive at New York after the Export Line's steamer has actually arrived, which in itself is a justification for considering these vessels not only for the transportation of United States mail but for foreign mail from the territory served by this

line.

Would Add Prestige to American Ships

Nothing would add more to the prestige of the American flag ships operating on regular schedule in our Mediterranean trade than for the Government to show its interest in and its desire to promote the maintenance of an American merchant marine in foreign trade than by employing the ships of the Export Steamship Corporation, in accordance with the laws of the United States, for the delivery of its mails in Mediterranean and tributary ports. These mails can be delivered with at least the same degree of regularity and celerity by the ships of the American Export Lines as they are now delivered.

There is a world-wide impression that the Government of the United States is not interested in building up and maintaining an American merchant marine in foreign trade, an impression justified in large degree by the past neglect of our Government to get behind such an undertaking. What we suggest, if adopted by our Government, would go a long, long way, in Mediterranean countries, at least, to prove that the United States Government is backing up in every way in its power the commendable and praiseworthy efforts of American citizens to increase and maintain its ships and its flag in foreign trade.

Alexandria, Egypt.