Golden Bear in the Pacific

In Bethlehem Steel's San Francisco shipyard, dungareed workmen bustled about under a towering new ship, greasing ways and loosening chocks. Then, as a whistle signaled, a bottle of California champagne was smashed against the be-flagged ship's bow, and the Pacific Far East Lines's S.S. Golden Bear slid smoothly into the bay.

The Golden Bear, a 546-ft.. 22.500-ton Mariner-class freighter, is the first major private vessel built on the West Coast in 25 years. The launching was also a high watermark for Pacific Far East Lines: though only eight years old. Pacific Far East has already passed American President Lines as the largest U.S. flag line on routes from Los Angeles and San Francisco to the Far East.

Sand & Cotton. Pacific Far East was founded by a group of businessmen-- who wanted to cash in on plentiful cargoes and scarce bottoms. To run the company, they hired American President Lines Vice President Thomas E. Cuffe (rhymes with rough), 55, a Kansas-born Californian who learned the ropes of the shipping business with the old Dollar Line.

While other shippers shied away from Government cargoes (rates about half commercial rates), Tom Cuffe grabbed them. He knew a shipper could pick up a full Government cargo at one dock, thus cut down on the money-losing time a ship spends in port picking up a few crates here and there. Cuffe also hired go-getting Sales Manager Al Papworth to bring in private cargoes. He did so by finding buyers and sellers for goods Pacific could carry. Examples: a Philippine glassmaker who was having trouble finding the right kind of sand was persuaded to import it from Del Monte, California; twelve Hong Kong importers who were short of cotton were sold California cotton surpluses; a deal was worked out to haul junked military equipment on Pacific islands to Japanese steel furnaces as scrap.

Such selling helped Pacific Far East buy eight ships and lease 47 more within three years, boosted earnings to $707,000 in 1952. In 1953, although shipping was way off, earnings still totaled $470,000. The original $2 common stock, counting splits, is now worth $38.

Faster & Quicker. Pacific Far East hoped it could keep sailing without a Government subsidy and thereby travel when and where it pleased. But taxes ate up so much of the profits that the line could not accumulate enough of a reserve to buy new equipment. Last year Pacific Far East went on the Government-subsidy list and its routes were restricted. But the subsidy made it possible to build the Golden Bear* and two more Mariners soon to come off the ways. (The U.S.

Maritime Administration pays 40% of the cost.) The new Mariners, which contain many defense features, are expensive ($10.6 million apiece). But they can cruise at more than 22 knots, have chain belts for quick unloading.

Says Tom Cuffe: "You've got to be quicker, faster and better . . . Our only chance to beat the cheaper foreign competition is to be ahead of them. With the Mariners we'll get to Japan in eight days instead of twelve, and to Manila in twelve instead of 18. That'll give us a lead for six ... or eight years ... In the meantime . . . we'll have to think of some way to keep ahead."

* Shippers Kenneth Dawson and William Sexton, Builders Harry Morrison and Stephen Bechtel, Oilman Richard Hanna and Philippine Industrialist Andres Soriano. -- Named for Cuffe's alma mater, the University of California. A golden bear on a blue background is also the line's trademark.

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