|Title||A letter from Scott M. Thompson regarding financing of ships and shipbuilding.|
|Scope & Content||
Letter or part of a letter from Scott M. Thompson to unknown recipient:
"according to plans submitted take a first mortgage on the ship, have her insured in a responsible company and charge interest @ 2%% and suppose the profitable life of the ship be estimated at 20 years charge 4% interest as a sinking fund we will have as follows first year interest on $180,000 @ 2% $3,600 sinking fund @ 4% 7,200 [two lines crossed out: 2d year interest on $180,000 @ 2% $3,600 sinking fund $180,000 less 7,200 (paid first year) 172,800 @ 4%] 2d year sinking fund $7200 interest on $180000 less 7200 paid back to government first year = $172800 @ 2% $3456 and so on for 20 years at the end of which time the government will have been paid their interest and $144000 of the principal and will have due them $36000 which the owners can repay on the same terms if they still find a profit in operating their ship. If not the government can sell her and get at least that amount even for Junk. The reason I named ships of 5000 tons carrying capacity and over is that a very large majority of the exporting and importing is done in ships of 5000 tons and larger, and ships smaller then this are not profitable except for special purposes especially for long voyages or even across the Atlantic. I am satisfied that a law of this kind would build up the American shipping and with more business for the ship yards and more yards. American genius would soon make use of labor saving devices, invent new ones and before many years they would be able to build ships in this country as cheaply as they are built anywhere in the world.
Scott M. Thompson
Ships are increasing in size so much every year that 5000 tons capacity will be a small ship in a few years I have been in the shipping business all my life and any information I can give you I will gladly give.
|Number of images||2|
Thompson, Scott M.