This, and the following American papers by Mr. Ripley, Mr. Horner, and Mr. Allen are reprinted by permission of the American Society of Mechanical Engineers. They were to have been discussed in conjunction with the four preceding English papers at the Joint Meeting in New York, which was cancelled owing to the outbreak of war. This paper presents certain technical aspects of ship design and operation as viewed from the standpoint of the executive administration of the merchant marine. The author evaluates the recent developments in hull and machinery design and construction in terms of economics. From the records of the Scantic Line and the American Republics Line, operating cost figures are cited to demonstrate the relation of the various factors involved in ship operation. A review of shipbuilding costs and sales values of ships is included. Among other important matters discussed in the paper are safety provisions, crew training and personnel relations, and finally mention is made of the need for better and more efficient methods of cargo handling. The problems are proposed, as the author states, without solutions being available for many of them, in the hope that subsequent discussion may develop appropriate answers.