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Congress is Not Much Concerned About the Merchant Marine RESSING merchant marine prob- lems have remained at a stand- still in congress. With the ques- tions at issue concerning the proper administration and functioning of the government shipping bureaucracies sorely complicated, wide differences of opinion as to the course of action are manifest. It is indicated clearly that one of the leading questions regarding prob- able action in the merchant marine mess in this session of congress will revolve around authority and control of the shipping board. Those who would make the shipping board in- dependent of the authority of the President are numerous in both houses of congress. Divorce Corporation From Board Divorce of the Fleet corporation from the shipping board and the creation of a federal shipping council and regional advisory councils with authority to develop trade routes pro- posed in a bill introduced Jan. 21, in congress by Representative Bacon of New York follows recommendations of the National Merchant Marine con- ference and coincides largely with the views of President Coolidge and it also supplements a bill recently in- troduced by Representative Scott of Michigan. The Bacon bill would turn over to the President all the stock in the Fleet corporation, would terminate the shipping board and provides for the appointment of a merchant marine commission, three members which would assume the regulatory duties of the board. President Coolidge’s recent policies of attempting to direct shipping board and Fleet corporation activities have been attacked several times in the senate within the last few weeks. Senator Edge, of New Jersey, de- fending the President’s attitude dif- ferentiated between the shipping board and the other commissions. The shipping board, he pointed out, has the dual responsibilities of operation and regulation, while the other com- missions are semi-judicial in their na- ture and should be more or less un- hampered. “Personally, if there is sufficient BY FRED B. PLETCHER Washington Representative, Marine Review public business—and perhaps there is —for the shipping board to be con- tinued as an independent agency of the government,’ Senator Edge de- clared, “for the regulation of rates and proper responsibilities, I shall be entirely satisfied to see such a board continued. In that event and for those responsibilities the board should be a judicial board and independent of the President. “From the standpoint of operation of a going business, however, I am con- Two Practical Steps Why doesn’t the Postmaster General award mail contracts ac- cording to the present law to American steamship lines engaged in the foreign trade? Such a step would be very definite aid and en- couragement, not only financially but in the way of standing and prestige in foreign ports. The’ construction loan fund might be used to encourage Amer- ican steamship owners in the ~ building of large fast diesel freighters of latest design. Up to 80 per cent of the cost of con- struction (to apply only to the building of approved diesel ves- sels) might be loaned on the basis of 2 per cent and return of the loan over a period of 20 years. On such terms the differential in first cost in the United States and in Europe would be met, Ameri- cans could complete with econom- ical ships and the shipyards would be given much needed work. vinced that the going business of the government orof a private corporation or individual is of such character that it cannot be administered satisfactorily or successfully by a board. I believe that such a responsibility in the case of the shipping board is the same, only in a greater degree, as the going business of any other department of the government, where through a cabinet officer or the head of a de- partment, the President’s policy is naturally reflected. Wants a Business Administration “The operation of shipping is a great big government business and in my experience and contact with busi- 29 ness I have never seen a _ business which has been successfully admin- istered unless there was actual execu- tive control. “Go ahead, have a shipping board, representative of the various sections of the country, if you wish, if we can satisfy ourselves that there is suf- ficient business of a regulatory char- acter to warrant the board—and as I have already said I am inclined to think there is—but let us organize this great business of operating ship- ping lines on the Pacific and the Atlantic and the Gulf on_ business principles; let us permit the President, elected by the people, to carry out a general policy.” The shipping board has taken back the American Palmetto line, which was sold to the Carolina Co. of Charleston, S. C., in September, because the com- pany has sustained such losses in the operation of the line that it could not continue, according to the board. Chairman O’Connor said the company was the victim of unfair practices. on the part of foreign lines in the same trade. The action of the board was in line with its declaration recent- ly that if purchasers of shipping board lines were not successful in the operation of the lines, the board would operate them again. According to the shipping board officials, the Carolina Co. will forfeit an initial payment of $75,000 on the line, and sustain the losses incurred since last September. It is understood that the company has lost on an average of . $10,000 a voyage. Crowley’s Appointments Approved The shipping board has approved the action taken by President Crowley, of the Fleet corporation, in filling vacancies created by recent resigna- tions. G. K. Nichols, who has been special assistant to the president, has been named a vice president, and J. Harry Philbin, manager of the ship sales division, also has been promoted to a vice presidency. James A. Wil- son, for a time connected with the Munson Steamship line, has been ap- pointed director of operations, succeed- ing Asa F. Davison. Warren F. Purdy becomes European director.