The cost of maintaining the United States Government merchant fleet has
been steadily reduced. We have established American flag lines in foreign
trade where they had never before existed as a means of promoting commerce
and as a naval auxiliary. There have been sold to private American capital
for operation within the past few years 14 of these lines, which, under the
encouragement of the recent legislation passed by the Congress, give
promise of continued successful operation. Additional legislation from time
to time may be necessary to promote future advancement under private
control.
Through the cooperation of the Post Office Department and the Shipping
Board long-term contracts are being made with American steamship lines for
carrying mail, which already promise the construction of 15 to 20 new
vessels and the gradual reestablishment of the American merchant marine as
a private enterprise. No action of the National Government has been so
beneficial to our shipping. The cost is being absorbed to a considerable
extent by the disposal of unprofitable lines operated by the Shipping
Board, for which the new law has made a market. Meanwhile it should be our
policy to maintain necessary strategic lines under the Government operation
until they can be transferred to private capital.