United States Shipping Board

The United States Shipping Board (USSB) was established as an emergency agency by the Shipping Act (39 Stat. 729), September 7, 1916. 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 end 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:

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 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war in Europe the national fleets of the warring countries became involved in those countries wartime effort and were withdrawn from commercial trade vital to United States commerce.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.

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