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 ships to meet national defense, foreign and domestic commerce during World War I. The EFC was renamed the U.S. Shipping Board Merchant Fleet Corporation by act of Congress 11 February 1927 (44 Stat. 1083). The Board and Corporation were abolished 26 October 1936 and their functions transferred to the U.S. Maritime Commission by the Merchant Marine Act (49 Stat. 1985) of 29 June 1936.

The Shipping Board had been established while the United States was at peace with intent to restore the nation's Merchant Marine. That changed with war. In the words of Edward N. Hurley, Chairman of the Board:

When the United States declared war against Germany the whole purpose and policy of the Shipping Board and the Fleet Corporation suffered a radical change overnight. From a body established to restore the American Merchant Marine to its old glory, the Shipping Board was transformed into a military agency to bridge the ocean with ships and to maintain the line of communication between America and Europe. Conceived as an instrumentality (sic) of peace, the Board became an instrumentality (sic) of war. Unlike other military agencies—the Army and Navy—it began with nothing—no ships, no officers, no crews, no organizations.

Ten days after the declaration of war the Emergency Fleet Corporation was established in response to those wartime requirements.

On 2 April 1917 President Woodrow Wilson cited Germany's refusal to suspend unrestricted submarine warfare in the North Atlantic and the Mediterranean in his request for a declaration of war on Germany, and Congress concurred on 2 April 1917. In that April 1,250,000 deadweight tons were sunk, with 122 ocean-going ships sunk in the first two weeks after that declaration of war. British losses in that period equaled an average round-trip voyage loss of 25%. Allied losses before U.S. entry had already been that heavy that construction in yards outside the U.S. was unable to sustain current losses.

Congress had failed to create a shipping board to manage U.S. maritime affairs. As early as 4 September 1914 bills were introduced, only to fail. President Wilson repeatedly requested enactment of a shipping act until Representative Joshua W. Alexander introduced House Bill 15455 that became law as the Shipping Act of 1916 (39 Stat. L. 728). That act established the United States Shipping Board headed by five commissioners appointed by the President and confirmed by the Senate. That board had complete control over American ships and shipping. Most importantly with respect to the Emergency Fleet Corporation was its power to form corporations for acquiring, maintaining and operating merchant vessels under certain conditions. Ten days after declaration of war, on 16 April 1917, the Board created the Emergency Fleet Corporation (EFC) in the District of Columbia with a capital stock of $50,000,000.

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