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40 i] tion of the cargo liner and opposes operation of tramp ships by the gov- ernment. Comment on this is as fol- lows: “The whole tendency of world ship- ping is toward the cargo liner type of vessel maintained in regular opera- tion on specific trade routes. This type also lends itself to defense pur- poses. Conversion and construction activities should therefore be directed toward this type. Vessels of such character, especially of diesel power, lend themselves to American genius in organization and labor-saving op- eration. Cargo liner services are those which contribute most substantially to the expansion of distribution of our products abroad. Recent studies of world shipping indicate that the liner is displacing the tramp to a consider- able extent. The government would serve no useful purpose, and would sustain much loss of public funds, by undertaking to maintain tramp serv- ices. “Aside from its use in speeding the mails and its potential usefulness as a naval auxiliary, the fast passenger liner has comparatively little value. It does not carry consequential cargo and therefore is an almost negligible factor in the extension of commerce. The MARINE REVIEW government serves no useful purpose in supporting a luxurious passenger service except to imcrease the mail fa- cilities and to provide a reserve for possible national defense, and the re- quirements of this reserve can be large- ly fulfilled by the cargo liner type of vessel. If the naval and postal authorities determine that there is a necessity for larger and faster type ships than the cargo liner type, which shall be more adapted to passenger and mail services, then the construc- tion and operation of such ships should be undertaken definitely upon naval and mail appropriations sufficient to cover the additional cost of. construc- tion and losses in operation charge- able to the operations, of the Emer- gency Fleet Corp. Except on this con- sideration we do not favor further con- struction of large Atlantic types of passenger vessels. The further con- struction of this type of vessel means the indefinite continuation of the gov- ernment in the shipping business. “All restrictions upon railway own- ership of vessels in international trade should be removed. The probable con- solidation of our railways into larger systems is likely to offer a possibility of the railways undertaking to ex- tend their transportation routes to February, 1925 overseas destinations. As railway rates and profits are now under regulation public interest would be fully pro- tected. If this could be brought about it would offer an additional means for the systematic establishment of the merchant marine. “The Emergency Fleet Corp., should be an independent entity with the general characteristics of a commercial business organization. The president cf the Emergency Fleet Corp. should Le selected by the President and should report to a board of directors to be appointed by the President. “The relation of the board to the Emergency Fleet Corp. should be the same as toward private American ship- ping organizations.” The following is said concerning re- placements: “Trade routes cannot be established on a permanent basis unless provision be made for the gradual replacement of obsolete vessels with up-to-date equipment. A recent survey indicates that the present equipment, if proper conversions of steamers to motorships of the cargo liner type are made, is sufficient without major replacements for the next five years. After that new construction will be necessary.” Such is the committee’s report. Washington Scared of Its Shadow BY MARINE REVIEW’S OWN WASHINGTON CORRESPONDENT administration party in congress is willing to strike out with any bold- ness on a definite policy for the management of the government fleet, or to take any now for a scheme of liquidation. In the meantime, the operating losses of the fleet are piling up. The shipping board bu- reaucrats though making a show of a change in policy, are actually conducting their affairs just about the same as before. Both houses are passing the buck to the shipping board on sales poli- cies, thus hoping to squelch for the present any pressing questions concerning the plugging up of fleet operation leak- ages. The Republicans in congress are afraid of the merciless criticism to be anticipated from Democrats and _ recal- citrant Republicans if the vessels are dis- tosed of at prices below their nominal value. ig IS clearly apparent no one in the In the meantime, the members of the shipping board are lining up their friends in both houses of congress for what might be termed a hand-to-hand fight against any legislation which would transfer to the Emergency Fleet Corp. the responsibility ‘just | actual operation of the government-owned fleet. Three resolutions have been passed by the board for the divorcement of the shipping board and the Fleet corporation activities. These resolutions, on the sur- face at least, have earmarks of compli- ance with the wishes of President Cool- idge, as expressed in his annual message, for complete divorcement of the two bureaucracies, as well as with the rec- ommendations in the recent report of the President’s advisory committee. The latest of these resolutions, adopted by the board on Dec. 22 and quoted below is ‘Clearly designed to keep the actual au- thority in its own hands. “Resolved, that nothing herein con- tained shall be construed as a transfer of title or ownership of vessels, docks, or other property, real or personal,’ be- longing to the United States; the posses- sion and control by the Emergency Fleet Corp. of any vessels or other property delivered to it under this resolution shall be solely that of an agent with limited powers. All contracts and agreements made by the United States Shipping Board Emergency Fleet Corp. shall clearly show that the same are contracts and agreements of the shipping board. * ok Considerable conflict of opinion also exists as to whether the President’s plan of giving over the entire operation and control of the ships to the Fleet cor- poration is the best solution possible. Thus the situation is more muddled than ever. The President, of course, wants a more business-like operation of the fleet, if that is possible, inasmuch as losses have been running at about $3,000,000 monthly, and it is the aim of the adminis- tration to keep the expenditures during the ensuing fiscal year within the $24,- 000,000 limit provided under the budget system, President Palmer, of the Fleet cor- poration, in testifying before the house subcommittee on the independent offices appropriation bill said “the accident of war caused the formation of an emer- gency fleet, which was the reason the board was at times drawn into things that had to do with the actual operation of. the vessels.” T. V. O’Connor, chairman of the shipping board, testified at this hearing that 300 to 350 vessels of the fleet should be scrapped at once. He