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The United States Shipping Board (USSB) was established as an emergency agency by the 1916 Shipping Act (39 Stat. 729), on September 7, 1916. The United States Shipping Board's task was to increase the number of US ships supporting the
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
efforts. United States Shipping Board program ended on March 2, 1934.


Initiation

The United States' maritime position had been eroding for decades with some Congressional concern, some remedies actually worsening the situation, with European shipping companies dominating overseas trade and just over 10% of the value of trade carried in U.S. owned ships. The 1916 act was the result of Congressional efforts to create a board to address the problem dating from 1914. At this time the legislation was not a part of any war effort with specific intent as stated in the act: :"An Act to establish a United States Shipping Board for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a Merchant Marine to meet the requirements of the commerce of the United States with its territories and possessions and with foreign countries; to regulate carriers by water engaged in the foreign and interstate commerce of the United States for other purposes." A board of five commissioners was to be appointed by the president with confirmation by the United States Senate as the United States Shipping Board (USSB) to acquire and construct suitable vessels and to create corporations under its control to execute the programs. In essence, the USSB was given "complete control over American ships and shipping". President
Woodrow Wilson Thomas Woodrow Wilson (December 28, 1856February 3, 1924) was an American politician and academic who served as the 28th president of the United States from 1913 to 1921. A member of the Democratic Party, Wilson served as the president of ...
made public his nominations for the board on 22 December 1916 with some dissatisfaction in the shipping industry about particular nominees and the board's power to set ocean freight rates raising particular concern and skepticism. The initial nominees were: William Denman (chairman), instrumental in drafting the legislation for the establishment of the USSB, for a term of six years, Bernard N. Baker for five years, John A. Donald for four years, James B. White for three years and Theodore Brent for a two-year term. The members of the board gathered in Washington the first week of January 1917 to plan and organize while awaiting confirmation which came in late January with the formal organization of the USSB being on 30 January. United States vessels had suffered a disadvantage and the laws passed by Congress had in some cases had the effect of giving advantage to European shipping instead of the desired effect so that the country was heavily dependent on foreign shipping. With the outbreak of war in Europe the national fleets of the warring countries became involved in those countries' wartime efforts and were withdrawn from commercial trade vital to United States commerce. One initial step was granting authority to the President to allow registration of foreign built ships owned by United States companies to enter the United States registry and operate under the United States flag and repeal certain penalties for those using foreign built vessels. The net effect was negligible as shipbuilding in the United States declined almost equally with the benefits gained. United States entry into the war just over two months after the board began its work completely changed the focus from general strengthening the nation's maritime position to a massive wartime program. Though it was sometimes referred to as the War Shipping Board, the official title remained the United States Shipping Board. The USSB was to address the shortage of shipping through acquisition of existing hulls and, with the declaration of war by the United States on 6 April 1917, a construction program through its
Emergency Fleet Corporation The Emergency Fleet Corporation (EFC) was established by the United States Shipping Board, sometimes referred to as the War Shipping Board, on 16 April 1917 pursuant to the Shipping Act (39 Stat. 729) to acquire, maintain, and operate merchant shi ...
(EFC) that was created 16 April. The precedent for using such a corporation had been set during the construction of the
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during which the
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, charged with much of the construction, had its stock entirely owned by the
Secretary of War The secretary of war was a member of the U.S. president's Cabinet, beginning with George Washington's administration. A similar position, called either "Secretary at War" or "Secretary of War", had been appointed to serve the Congress of the ...
. The Shipping Act had explicitly empowered the USSB to found such a company and that was done with issuance of $50,000,000 in stock all initially held by the USSB and of which a majority portion must be retained with a provision that trustees of the EFC must also hold stock. During the war Congress granted the President extraordinary wartime powers that were used by means of Executive Orders to expand the authority of USSB and its corporation. The USSB, as a regulatory and policy body, executed its programs largely through the EFC which was a separate entity that was fully under the policy control of the majority stockholder, the USSB. The Chairman of the USSB was initially the head of the EFC but the General Manager had all real authority except the power to sign contracts. The division of authority between the USSB and EFC and the construction program's direction led to conflict between Chairman Denman and the EFC's General Manager, Major-General Goethals, resulting in the resignation of both men and reconstitution of the board and corporation. The new USSB composition that remained throughout the war was
Edward N. Hurley Edward Nash Hurley (July 31, 1864 – November 14, 1933) was an Irish American businessman and inventor who served as the second chairman of the Federal Trade Commission from July 1, 1916 to January 31, 1917. Biography Hurley was born in Gal ...
, chairman, with
Raymond B. Stevens Raymond Bartlett Stevens (June 18, 1874 – May 18, 1942) was a U.S. Representative from New Hampshire. Born in Binghamton, New York, Stevens moved with his parents to Lisbon, New Hampshire, in 1876. He attended the public schools, Bosto ...
replacing James B. White as vice-chairman and John Donald,
Bainbridge Colby Bainbridge Colby (December 22, 1869 – April 11, 1950) was an American politician and attorney who was a co-founder of the United States Progressive Party and Woodrow Wilson's last Secretary of State. Colby was a Republican until he helped co-f ...
and Charles R. Page as members. Rear Admiral Washington L. Capps, formerly Constructor of the Navy and Chief of the Navy's Bureau of Construction, became the General Manager of the EFC.


World War I

Shipbuilding prior to the entry of the United States into
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
had been expanded to some extent with domestic shipping companies replacing ships withdrawn from trade by belligerents and both the United Kingdom and neutrals contracting for ships in U.S. yards. The U.K. had contracted for ships through private British companies both for security and U.S. neutrality needs. In March 1917, just before U.S. entry into the war and the USSB shifting to full wartime operations, there were about 700,000 tons of new construction underway for the private U.K. owners and all 234 building ways in the U.S. occupied by either those or ships for neutral and domestic shipping lines. There was no possibility to quickly expand capacity to incorporate the USSB/EFC shipbuilding program.


Providing hulls


Interned enemy ships

The most readily available hulls were 91 German vessels of aggregate tonnage refurbished for use by the USSB and under legislation of 12 May 1917 and an Executive Order of 30 June 1917 giving the USSB power to formally seize the vessels and enter them into the U.S. registry. The report of December 1918 shows 1 Austrian steamer, 87 German steamers that now included 4 from Cuba, and 7 sailing vessels seized. Some of Germany's premier liners, such as , , , ''Astoria'', ''Pensacola'', ''Aeolus'', ''Mercury'', ''Pocahontas'', ''Powhatan'', ''Prinz Eitel Friedrich'', ''Republic'', ''President Lincoln'', ''Kaiser Wilhelm II'', ''Antigone'', ''Rhein'', ''Kronprinz Wilhelm'', ''Covington'', ''Friedrich der Große'' and , were among the seized ships. On 15 November 1917 the USSB authorized negotiations with foreign countries that had seized German or Austrian ships with actual discussions during December and into January 1918. The result was either charter or outright purchase of a number of ships interned from South America to China.


Commandeering existing construction

The USSB's first action regarding new construction was commandeering every contract, hull and even steel in the U.S. yards for ships over . The first order was signed by Chairman Hurley on 3 August 1917 to be executed by the EFC to secure control of the shipyards and construction already underway. The action was immediately protested by nearly every shipyard and owner of the ships under construction with the foreign owners protesting through the
State Department The United States Department of State (DOS), or State Department, is an United States federal executive departments, executive department of the Federal government of the United States, U.S. federal government responsible for the country's fore ...
. A large number of the contracts and ships under construction for foreign accounts were for the United Kingdom and the protest was solved with that government's agreement that the ships would be used in the total war effort. With one exception, a new ship from
Union Iron Works Union Iron Works, located in San Francisco, California, on the southeast waterfront, was a central business within the large industrial zone of Potrero Point, for four decades at the end of the nineteenth and beginning of the twentieth centuries ...
already loaded for departure named ''War Sword'', the contracts and ships were requisitioned. Out of 431 such ships, totaling , requisitioned 414 were completed after cancellations of some contracts for ships of unwanted design that were in early stages of construction or not yet laid down. A very large group of these ships, contracted with names prefixed with "War" and renamed before completion, were being built for the British Shipping Controller of Ministry of Shipping under various shipping line contracts. Examples of these ships are , which became USS ''West Bridge'', and one of the
Great Lakes The Great Lakes, also called the Great Lakes of North America, are a series of large interconnected freshwater lakes in the mid-east region of North America that connect to the Atlantic Ocean via the Saint Lawrence River. There are five lakes ...
built ships, originally ''War Bayonet'', which became USS ''Lake Superior'' for the first war and USS ''Tuluran'' for the second. Others among these ships found service in the next war; for example, ''War Dido'' was torpedoed and sunk as in 1941, and ''War Dragon'' was seized by Japan and sunk as ''Renzan Maru'' by on 1 January 1943. Some being built for domestic shippers had long careers, with and ''Oriente'' being examples.


Construction program

The Board's construction program, most notably the
Hog Islander Hog Islanders is the slang for ships built to Emergency Fleet Corporation designs number 1022 and 1024. These vessels were cargo and troop transport ships, respectively, built under government direction and subsidy to address a shortage of ships ...
ships, was executed through Emergency Fleet Corporation which it established 16 April 1917. The shipbuilding program was concluded with the 9 May 1922 delivery of the ship completed and delivered as ''Western World'', launched as ''Nutmeg State'' 17 September 1921, by
Bethlehem Shipbuilding Corporation Bethlehem Steel Corporation Shipbuilding Division was created in 1905 when the Bethlehem Steel Corporation of Bethlehem, Pennsylvania, acquired the San Francisco shipyard Union Iron Works. In 1917 it was incorporated as Bethlehem Shipbuilding Co ...
at
Sparrows Point, Maryland Sparrow's Point is an unincorporated community in Baltimore County, Maryland, United States, adjacent to Dundalk. Named after Thomas Sparrow, landowner, it was the site of a very large industrial complex owned by Bethlehem Steel, known for steelm ...
.


Ship management

When ships were delivered from the builder to the USSB they came under the management of the Division of Operations which allocated them to the
War Department War Department may refer to: * War Department (United Kingdom) * United States Department of War (1789–1947) See also * War Office, a former department of the British Government * Ministry of defence * Ministry of War * Ministry of Defence * D ...
, Navy Department or commercial service based on needs and the class and type of ship. By December 1918 the division had become the largest ship operating entity in U.S. history with a total fleet of 1,386 vessels totaling either owned outright, managed or chartered. To further control traffic required by the war effort, methods applied by the British were employed in which rates were adjusted and control was exercised through the division's Chartering Committee, whose approval was necessary to obtain license to refuel in U.S. ports. With U.S. registered ships already under tight control, these regulations were largely directed at neutrals. A specific example was the preferred trade by neutrals in manganese with eastern South America, when the war effort required nitrates from the west coast countries so that the board's efforts were directed to shift the balance. Enforcement of rates was strict and at one point, before wide compliance, 136 steamers were held in U.S. ports. By December 1918, the USSB directly controlled such a large portion of U.S. shipping through ownership and charter that the USSB's prewar rate setting regulatory function had largely become a minor factor. A Maritime Intelligence Department within the division and a separate Division of Planning and Statistics collected and analyzed shipping data in order to help determine what level of shipping was necessary for commerce and how much could be shifted to the war effort.


Ship manning

As of 1 June 1917, the USSB established a recruiting service with headquarters in Boston, with the first of an eventual 43 training centers, in recognition that traditional methods were too slow for the rapid wartime expansion, for deck officers at
Cambridge, Massachusetts Cambridge ( ) is a city in Middlesex County, Massachusetts, United States. As part of the Boston metropolitan area, the cities population of the 2020 U.S. census was 118,403, making it the fourth most populous city in the state, behind Boston, ...
on 4 June. A second set of schools was created for engineering officers, with those for engineers destined for turbine powered ships sent to the builders of turbines for training. The early result, between 1 June 1917 and 1 October 1918 was 11,618 licensed officers. The officer training was expanded to training for crew, deck sailors, firemen, wipers, cooks and stewards, by December 1917 and open to all male citizens between the ages of 18 through 20 and 32 though 35 with a goal expanded from an estimated 85,000 to 200,000 due to the revised estimates of ships by the end of the war. To ensure labor problems did not disrupt necessary war shipping, the USSB employed special labor consultants and entered into agreements with labor and other government agencies to resolve labor disputes directly and also standardize wages across the industry. One of the USSB organizations specifically concerned with the issue was the Marine and Dock Industrial Relations Division to coordinate all labor related matters, and by late 1918 industry and labor had begun referring disputes to the board and thus avoiding any stoppages.


National Adjustment Commission

The National Adjustment Commission was established in 1917 as an adjunct to the USSB, for the adjustment and control of wages, hours, and conditions of labor in the loading and unloading of vessels. In 1918 the initial operation and policies of the commission was agreed to between the USSB and the following parties: *
Secretary of War The secretary of war was a member of the U.S. president's Cabinet, beginning with George Washington's administration. A similar position, called either "Secretary at War" or "Secretary of War", had been appointed to serve the Congress of the ...
*
Secretary of Labor The United States Secretary of Labor is a member of the Cabinet of the United States, and as the head of the United States Department of Labor, controls the department, and enforces and suggests laws involving unions, the workplace, and all ot ...
*
American Federation of Labor The American Federation of Labor (A.F. of L.) was a national federation of labor unions in the United States that continues today as the AFL-CIO. It was founded in Columbus, Ohio, in 1886 by an alliance of craft unions eager to provide mutu ...
*
International Longshoremen's Association The International Longshoremen's Association (ILA) is a North American labor union representing longshore workers along the East Coast of the United States and Canada, the Gulf Coast, the Great Lakes, Puerto Rico, and inland waterways. The ILA h ...
* major shipping companies on the Atlantic and Gulf coasts. Subsequently, additional shipping companies and labor organizations entered into the agreement, with modifications.
William Z. Ripley William Zebina Ripley (October 13, 1867 – August 16, 1941) was an American economist, lecturer at Columbia University, professor of economics at MIT, professor of political economy at Harvard University, and racial anthropologist. Ripley was fa ...
was chairman of the commission in 1919–1920. In July 1920 the USSB withdrew from the commission agreement and decided to deal with shipping workers directly. The commission ceased operations on October 1, 1920.


Post war and abolishment

The USSB operated a shipping business with its surplus ships until 1920 when the overseas freight market collapsed and it began to lay up its vessels. In 1925 Henry Ford bought 199 of these out of service ships for $1,697,470 as part of an investigation into the secondary use of materials. The first ship reached the Ford River Rouge Complex in November the same year and all the remaining ships were broken down and recycled the following summer. The USSB was abolished effective March 2, 1934. Its successor agencies have been the U.S. Shipping Board Bureau of the
U.S. Department of Commerce The United States Department of Commerce is an United States federal executive departments, executive department of the Federal government of the United States, U.S. federal government concerned with creating the conditions for economic growth ...
(1933–36); the U.S. Maritime Commission (1936–50); the U.S. Federal Maritime Board of the Department of Commerce (regulatory functions only, 1950–61); the
U.S. Federal Maritime Commission The United States Federal Maritime Commission (FMC) is an independent federal agency based in Washington, D.C. that is responsible for the regulation of oceanborne international transportation of the U.S. It is chaired by Daniel B. Maffei. His ...
(regulatory functions only, 1961– ); the
United States Maritime Administration The United States Maritime Administration (MARAD) is an agency of the United States Department of Transportation. MARAD administers financial programs to develop, promote, and operate the U.S. Maritime Service and the U.S. Merchant Marine. Det ...
of the Department of Commerce (all other functions, 1950–81); and the U.S. Maritime Administration of the
U.S. Department of Transportation The United States Department of Transportation (USDOT or DOT) is one of the executive departments of the U.S. federal government. It is headed by the secretary of transportation, who reports directly to the President of the United States and ...
(all other functions, 1981– ).


U.S. Shipping Commissioners

* 1920–1921
Joseph Nathan Teal Joseph Nathan Teal (1858–1929) was a prominent attorney and civic leader in Portland, Oregon in the early 20th century. He was known as an advocate of waterway development in the Pacific Northwest. He served as the chair of the Oregon Conserv ...
*1921 - 1923
Albert Lasker Albert Davis Lasker (May 1, 1880 – May 30, 1952) was an American businessman who played a major role in shaping modern advertising. He was raised in Galveston, Texas, where his father was the president of several banks. Moving to Chicago, he be ...
Cruikshank & Shultz (2010), ''The Man Who Sold America'', pp. 199–204 *1923 - Edward P. Farley


References


Bibliography

* * *
National Archives: Records of the United States Shipping Board
* * * *


External links



(1923 Munson Line brochure reproduced a


''Business Digest and Investment Weekly'' July 11, 1917 note of seizure of German ships and listing
{{Authority control Shipping Board Government agencies established in 1916 Government agencies disestablished in 1934 1916 establishments in the United States 1934 disestablishments in the United States