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had Pt ——Mr. Kennedy’s Repors»——- The final report made to the President by Joseph P. Kennedy as retiring chairman of the Shipping Commission bluntly states that we cannot hope to have a merchant marine bullt in this country unjess private concerns are will- ing to make material reductions in the bids so far submitted. If these bids are accepted and the high prices paid, Mr. Kennedy warns that the merchant marine thus created will collapse of its own weight. To build merchant ships in navy yards would not be economical and. moreover, It would probably prove to be imprac- ticable while the Government is carrying out a program of naval expansion which will mo- nopolize the resources of its own plants. ‘ir. Kennedy seems to incline to the belief that unless more favorable prices can be obtained here the Maritime Commission shouhd consider the possibility of building abroad. Commenting on the fact that one class of bids goes much beyond the rates for ships con- structed during the war at the Hog Island Yards, Mr. Kennedy says: Tt is extremely difficult fo expiain this situation, All available indices seem to show that the costs of material entering into ship construction are much lower to- day than they were during the period when the Hog Island vessels were built and that labor costs, even though higher on an hourly basis, are probably no more if over- time and other factors are taken into con- sideration, Even if wages today were dou- ble those of the war era they still woukt not account for the pres¢.it prices, as only 30 to 40 percent of the cost of a ship 1: spent in the yards.* ** The cost of & cargo vessel in Britain today is about 214 times the pre-war figure. Bids submitted by the larger yards on the C-2 ships are ap- proximately four times those prevailing in the United States in 1913. There would be Yigorous objection in Con- gress. reinforced by protests from labor and {r building interests, if a move were made te have ships for an American merchant marine torstructed in forelgn yards. Yet yards in Bellast can today build a cargo ship of the C-2 type for about one-third of the average of bis received from American builders for shibs of the same size. It is clear from Mr. Kea- nevlys report that we cannot hope to get fo teamlieell marabanmh marinn nt am. 7% PCA OU LL faa eo l--a cost permitting opcration on a profit- abie basis—unless American plants agree to 1 drastic revision of their proposals. Governmert construction as an alternative would be cost}: because of the necessity for creating plants Betore-tne work would begin. | CLIPPING For PROOKLIN DAILY BAGLE po Peo, ATi: PORMAADLD BY NEW YORK DIVASLON