Second Annual Report of the United States Shipping Board DECEMBER 1 1918 WASHINGTON GOVERNMENT PRINTING OFFICE 1918 TABLE OF CONTENTS I UNITED STATES SHIPPING BOARD rase Organization of the Board 7 Functions of the Shipping Board 8 Investigations bearing upon the Development and Regulation of the American Merchant Marine 11 Legislation affecting the Shipping Board 13 Recommendations 16 Representatives of the Shipping Board on other governmental agencies 1 Allied Maritime Transport Couucit 17 2 War Industries Board 18 3 War Trade Board 18 4 Labor Policies Board 19 5 Exports Control Committee 19 Relations with other departments of the Government 1 With the Navy Department 19 2 With the War Department 20 3 With the Department of Justice 20 4 With the Department of State 20 5 With the Treasury Department 21 6 With the Department of Commerce 21 7 With the Department of Labor 21 8 With the Railroad Administrationn 21 Summary and classification of vessels under the jurisdiction of the Shipping Board 21 Table IAmerican and foreign steam and sailing vessels classified accord ing to sources of acquisit ion 23 Table IIAmerican and foreign steam and sailing vessels assignment and form of control 24 Table III American and foreign tankers assignment and form of control 26 Table IVAmerican and foreign steamers assignment and form of con trol0 0 0 28 Table VAmerican and foreign sailing vessels and auxiliary schooners assignment and form of control 30 Table VI American and foreign steamers distributed between those manned by the Shipping Board and those manned by other agencies 31 Table VILAmerican and foreign sailing vessels distributed between those manned by the Shipping Board and those manned by other agencies 0 0 0 32 Table VIIIAmerican and foreign tankers distributed between those manned by the Shipping Board and those manned by other agencies 32 Requiaition of vessels 33 Transfer of American vessels to foreign registry 36 Transfers from one American citizen to another 38 Admission of foreign vessels to American registry 39 CONTENTS Admission of vessels of foreign registry and foreign construction to United States Page coastwisetrade 40 Construction for private account domestic and foreign 40 Coastwise lines 43 Exclusion of vessels from the war zone 43 Repairing of enemy vessels taken over by the United States 45 Enemy tonnage secured from other countries 45 Foreign vessels chartered by the Shipping Board 46 Acquisition of foreign tonnage Dutchships 47 Tonnage derived from northern neutrals 52 Japanese agreement 53 Ships built in Chinese yards 53 French sailing vessels 54 Division of Operations 54 Administrative organization of the Division of Operations 56 Branch offices of the Division of Operations 57 New York agency 58 Boston agency 59 San Francisco branch 60 Great Lakes vessel s 61 Maritime intelligence department of the Division of Operations 61 Assignment of vessels 62 Financial department of the Division of Operations 64 Shipping control committee 65 Chartering Committee 68 Port and Harbor Facilities Commission 72 Division of Planning and Statistics 74 LawDivision 77 Regulation of rates 78 Recruiting Service 79 Labor problems 83 Marine and Dock Industrial Relations Division 84 Shipbuilding Labor Adjustment Board 84 National Adjustment Commission 86 New York Harbor Wage Adjustment Board 88 War Zone Pass Commission 88 Board of Survey and Consulting Engineers 88 Ocean Advisory Committee on Just Compensation 89 Division of Insurance 89 Ship Protection Committee 91 Information Bureau 93 II UNITED STATES SHIPPING BOARD EMERGENCY FLEET CORPORATION Organization and jurisdiction of the corporation 94 Development of the organization and management methods of the corpora tion 95 Removal of the offices of the corporation to Philadelphia 96 Authorizations appropriations and commitments 96 Legal problems 114 Commandeering of vessels in course of construction 116 Contracts for ship construction 117 CONTENTS 5 raga Management of the shipbuilding districts 119 Extension of shipbuilding yards and facilities 120 The Fabricated shipyard 129 Steel ship construction 132 Summary of activities and results in steel ship construction 137 Wood and composite ships 139 Development of the concrete ship 142 Expansion of housing facilities 143 Transportation of shipyard workers 146 Protection of plants against fire and other hazards 147 Determination of requirements for material Contact with War Industries Board 148 Centralized control of supplies 149 Survey and development of power facilities 150 Industrial rel ations 151 Labor requirements section 153 Education and training section 153 Health and sanitation section 155 Sanitary engineering at IIog Island 156 Safety engineering 157 Meld organization 157 Publications and educational appeals 158 Financial administration 159 Auditing 159 Comptrollers office 160 Insurance section 160 Central staff work Organization and methods 161 CONTENTS APPENDIX Page TABLE I a Compensation of employees of United States Shipping Board in service prior to September 30 1918 164 I b Names and compensation of employees of the United States Shipping Board in service for some period within the year ending September 30 1918 who have resigned prior to that date 169 II Statement of disbursements from the appropriation Salaries and expenses of United States Shipping Board for the fiscal year ending June 30 1918 171 III United States Shipping Board and United States Shipping Board Emergency Fleet Corporation consolidated balance sheet as at June 30 1918 172 1V Statement showing number of persons grade or character of positions the original rates of compensation and the in creased rates of compensation as required by section 2 sundry civil act June 12 1917 United States Shipping Board 174 V Memorandum for the adjustment of wages hours and condi tions of labor in shipbuilding plants December 8 1917 176 VI Table of delivered ships constructed by the United States Ship ping Board Emergency Fleet Corporation 177 VII a Monthly summary of keels laid hulls launched and ships delivered up to November 1 1918 178 VII b Condensed summary of results in ship production as of November 15 1918 179 VIII Summary chart showing monthly progress in ship production 180 IX Condensed comparative balance sheet of the United Statey Shipping Board Emergency Fleet Corporation as of August 31 1918 and August 31 1917 I 181 X United States Shipping Board Emergency Fleet Corporation treasurers report August 31 1918 181 XI Personnel table of the United States Shipping Board Emer gency Fleet Corporation as of September 30 1918 showing compensation of employees 182 XII Details of housing contracts of the United States Shipping Board Emergency Fleet Corporation 184 XIII Legal arrangements involved in connection with the Emer gency Fleet Corporations housing projects for shipyard em ployees 190 XIV List of municipalities which have furnished facilities in con nection with housing projects of the Emergency Fleet Corpo ration with their approximate commitments 191 XV Loans made by the Emergency Fleet Corporation to utility com paniesin connection with housing projects 191 XVI Dormitories and cafeterias constructed or planned for the Emer gency Fleet Corporation 191 XVII List of contracts with the Emergency Fleet Corporation for the construction of transportation facilities 192 XVIII Special steamtrain service arranged for shipyard workers 193 XIX Arrangements for ferryboat transportation of shipyard workers 194 XX Disbursements and liabilities of the Emergency Fleet Corpora tion at the Government agency plants at Hog Island Pa and Bristol Pa 194 I UNITED STATES SHIPPING BOARD WASHINGTON D C December 1 1918 To the SENATE AND HOUSE OF REPRESENTATIVES The United States Shipping Board has the honor herewith tosub mit its second annual report covering the period from November 1 1917 to and including October 31 1918 except as otherwise noted The activities and accomplishments of the Board during the past year have been necessarily controlled by the war emergency which has thrust certain imperative problems of tonnage control and ship construction into the foreground for immediate solution The Board has been unable to find precedents ready to hand but has had to formulate new policies in order to cope with the extraordinary cir cumstances witlf which it has been confronted For this reason it has seemed gesirable in presenting the results achieved by the Board in the various phases of its activities to set forth in some detail in the following pages the reasons for the various measures which have been adopted together with an account of the administrative organi zation which has been built up ORGANIZATION OF THE BOARD As noted in the First Annual report of the Shipping Board pp 5 and 6 the original membership of the Board which was completed in January 1917 consisted of Mr William Denman of California chairman Mr Bernard N Baker of Maryland Mr John B White of Missouri Mr TheodoreBrent of Louisiana and Mr o m A Donald of New York During the year 1917 Messrs Den man Balser Vhite and Brent resigned and in their places the Presi dent nominated and the Senate confirmed the appointment of Air Edward N IIurley of Illinois Mr Raymond B Stevens of New Hampshire Mr Bainbridge Colby of New fork and Mr Charles R Page of California Commissioner IIurley was chosen by the Board as chairman and Mr Stevens was chosen as vice chairman During the past year there has been no change in the membership Of the Board the members of which with the dates of their confir mation are as follows Dir Edward