[Month Ended May 15, 1918]

All shipbuilding records have been broken by American builders in the last month. On May 14 it was announced that the first million tons of ships had been completed and delivered to the United States Government under the direction of the Shipping Board. The actual figures on May 11 showed the number of ships to be 159, aggregating 1,108,621 tons. More than half of this tonnage was delivered since Jan. 1, 1918. Most of these ships were requisitioned on the ways or in contract form when the United States entered the war. This result had been anticipated in the monthly records, which showed a steady increase in the tonnage launched:

The rapidity with which ships are being produced was shown by the breaking of the world's record on April 20 and in turn the breaking of this record on May 5. On the former date the 8,800-ton steel steamship West Lianga was launched at Seattle, Wash., fifty-five working days from the date the keel was laid. This was then the world's record. But on May 5 at Camden, N. J., the steel freight steamship Tuckahoe, of 5,548 tons, was launched twenty-seven days after the keel was laid.

Ten days after this extraordinary achievement the Tuckahoe was finished and furnished and ready for sea—another record feat.

Charles M. Schwab, Chairman of the Board of Directors of the Bethlehem Steel Corporation, was on April 16, 1918, appointed Director General of the Emergency Fleet Corporation to speed up the Government's shipbuilding program. He was invested with practically unlimited powers over all construction work in shipyards producing vessels for the Emergency Fleet Corporation. Charles Piez in consequence ceased to be General Manager of the Corporation, remaining, however, as Vice President to supervise administrative details of construction and placing contracts.

Mr. Schwab, who was the fifth man to be put in charge of the shipbuilding program, was not desirous of accepting the position when first approached because he considered his work in producing steel of first importance in the carrying out of the nation's war program. But after a conference with President Wilson, Edward N. Hurley, Chairman of the Shipping Board; Bainbridge Colby, another member of the board, and Charles Piez, he decided to accept the new position.

Almost the first thing Mr. Schwab did was to move his headquarters to Philadelphia as the centre of the steel-shipbuilding region, taking with him all the division chiefs of the Fleet Corporation directly connected with construction work and about 2,000 employes. The Shipping Board and Mr. Piez retained their offices in Washington with 1,500 subordinates and employes. As a further step toward decentralization it was arranged to move the operating department, including agencies such as the Interallied Ship Control Committee, headed by P. A. S. Franklin, to New York City.

The original "cost-plus" contract under which the Submarine Boat Corporation of Newark was to build 160 ships of 5,000 tons for the Government was canceled by Mr. Schwab as an experiment to determine whether shipyards operating under lump-sum contracts and accepting all responsibility for providing materials could make greater speed in construction than those operating with Government money, such as the Hog Island yards. The result was to increase the cost of each of the 160 ships from $787,500 to $960,000.

A request for an appropriation of $2,223,835,000 for the 1919 program was presented by Mr. Hurley and Mr. Schwab to the House Appropriations Committee on May 8.

Of this total $1,386,100,000 was for construction of ships and $652,000,000 for the purchasing and requisitioning of plants and material in connection with the building program.