Harriman Sells

The U. S. had 15,377,480 gross tonnage of ships afloat last year. This was the bottom of a steady decline since the 1921 peak of 17,026,002 tons, although practically twice that of 1917--8,871,037 tons.

Last week 57,000 tons more went overboard through the sale by William Averell Harriman's United American Line of the Resolute, Reliance and Cleveland to the Hamburg-American Line. This will give Germany a gross merchant tonnage of 3,130,713, practically where she was in 1917 and not far below her 1919 registry, which the Allies wrecked by confiscation.

Six years ago Mr. Harriman, then only 29 years old, made a pact with the Hamburg-American Line. In 1916, only three years out of Yale, he had decided that "the most important matter connected with the growth and well-being of the U. S." was shipping. He put to the back of his mind the legacy of railroad activities that his dour, nervous father, Edward Henry Harriman,* left him, that he himself trained in. He took interest in a small shipbuilding plant on the Delaware, enlarged it, built concrete shipways. After the War he operated Shipping Board vessels on commission. Coastwise shipping struck him as a good field. He was right. At present transatlantic shipping is unprofitable. Passenger carriers move at a dead loss. Coast trading has been earning so well that it has become crowded with ships. More frequent sailings have stimulated both passenger and freight traffic.

In 1920 young Harriman made a master play. He created a contract with the Hamburg-American Line so that for 20 years his United American Line would represent the German company in the U. S. They would represent his company in Germany. German shipping had sunk to a pitiful low of 672,671 tons. Wilhelm Cuno, onetime head of the German line, was busy in Germany's muddled politics. The contract was profitable for both parties.

But Herr Cuno eventually returned to his business affairs. German officials at Hamburg and other ports grew less affable to the U. S. agents. Yet they dared not hint their wish to abrogate that contract. At the same time Mr. Harriman was noting the low earnings of transatlantic carriage. Now it seems, from the sale of these three ships, that the Hamburg-American Line is to go more on its own, that Harriman will concentrate more on his coastwise shipping, mayhap resume his railroad activities. (He is a director of the Union Pacific, of the Illinois Central, besides being chairman of the W. A. Harriman & Co., Inc., of the American Ship & Commerce Corp., of the American-Hawaiian Steamship Corp., of the United American Lines, Inc., of the Merchant Shipbuilding Corp., and director of the Guaranty Trust Co., of New York, of the Wells Fargo Co., of the American Railway Express Co., of the National Surety Co.) If he does so, he will be truly a transportation amphibian.

*He died in 1909, leaving $10,000,000 to his boy, who was then at Groton preparing for college. The bulk of the estate, $100,000,000, went to the widow, Mary W. Harriman. She is manager of the estate, is active in charitable work, passes from her home at "Arden House," Harriman, N. Y., to her Manhattan town residence.