of all of them, the temporary withdrawal of one or a few of them
will not reduce the cost of maintaining the establishment. Recurrent
shore expenditure directly incurred by a ship is, of course, clearly
referable to her and does not form part of the establishment charges
to which I refer. Such expenditure follows the ship, so to speak.
In fixing the hire or charter rate for the hull, an attempt is made
to ascertain for what the ship could have been chartered commer-
cially. As the hypothetical charterer would in all probability
himself be a shipowner with a shore establishment to the support
of which the earnings of the chartered ship in his hands would be
expected to contribute, he would be unlikely to pay a charter rate
sufficient to cover the owner's establishment charges as well as the
working value of the ship. He would probably be prepared to
undertake the charges that follow the ship, so to speak, and pay
a charter rate sufficient to cover depreciation and give a proper
return to the owner, having proper regard to the capital value of the
ship, its efficiency, its profit-earning capabilities, and the prevailing
demand for tonnage, if that were uncontrolled. But, beyond that,
the reasoning of the hypothetical charterer ought not to be supposed
to take him. In practice, and in theory too perhaps, the question
whether the owner would part with his ship at a rate so arrived at
would depend on what other employment he had for his ship, and,
in many cases, that would be only another way of saying that he
would consider whether the volume and nature of the trade he
had was such that it could be carried by his other ships, so that
there would be no important reduction in the total revenue from
freights and charter moneys by which the expenses of his business,
including those of his shore establishment, were borne and a profit
returned. But, in the case of a requisition, he cannot make this
choice. He is compelled to hand over his ship, and so, to recom-
pense him, the basal hire rate must be increased to include some
appropriate substitute for the ship's proper contribution to the con-
tinuing charges of the shore establishment, that is, of course, if the
ship actually did make such a contribution and its withdrawal means
the loss to the owner of the amount contributed. To do this is not
to award anything for loss of profits. The establishment charges
run on as an incident of the continued ownership of the ship as part
of the undertaking. So, in a collision case, where the criterion is,
in a sense, loss of profits, loss of what the ship would have earned
during the period of detention but for the casualty, crews' wages
properly running on are added and management charges are allowed
for, that is not deducted, in making up the account of net earnings :