New-York tribune., 1920-11-27
Shipping e Board
Is Operated at
Enormous Loss
Congress TO Be Asked for
Sl5O.OOO, 900 in Addition
TO All Receipts to Garry
Work Over Next Year
Cargo Vessels a Failure
Lack of Demands for
Space and Freight War
on Atlantic Are Blamed


pror, m Trihlrc'S Washington Rn-cau
WASHINGTON, Nov 26- The United
States shipping Board is being oper-
sted At an enormous loss every month.
! was suthoritatively said to- day, and
aa result the board Will ask Con
gless % grant it an appropriation Of
sl50.oo0000, IN addition to all its re
co.pfs from the operation and sale Of
vessels. the sale Of yards and surplus
supplies and the settlement of claims
In order TO carry It over the next fiscal
year.
officials of the board admitted to-
day that Congress would be asked to
appropriate * very large sum-" but
they declined to discuss the boards
financial condition in advance of the
submission of their financial state
ment to Congress. The estimate of the
amount Congress will be asked to
grant IN lump sum was unoficially
placed at S150.0OO.0O0, however.
The financial advisers of the board
viii appear before the sub committee
OF the Appropriations Committee of
the House Of Repre- oentatives that is
drafting the sundry civil bill and for
ma!iy make the request for the ap-
IroprlatIon, either tomorrow or Mon
day.
Board Required to Support Itself
The $150OO0, 900, it was said. won]d
be used as a revolving fund to nav
Tor all the operations OF the Shippinp
Board. The fund would be replenished
from the receipts of the board money
Icing turned into it instead of into
the Federal Treasury, as fast as it was
received from the operation or sale
OF vessels, shipyards and surplus ma
terlals and from the settlement of
claims.
Since Jaly os this year the Ship
ping Board has been REQUIRED to snp-
port itself. During the last session Of
congress The board asked for appropri-
atoms totallng nearly S45OOO0, 600. The
Appropriations Committee refused to
give the board any money at all, and
pfoVlded IN the sundry civil appropria-
tlons Dll passed last June that there
should be available for the boards use
about S6O.O00,00 that was left over
from the last fiscal year together with
the money the board received from the
sale and operation of its vessels, the
sale o. yards and materials and the
setllement OF claims it had pending
aga'nSt other government departments.
Expenses Put at s3O6 900 900
Inc expenses of the board for the
current fiscal year were estimated at
s506.ooo,o0O, including 500 100000 asked
aS capita fund for the operation of
the feet OF merchant ships. CONGRESS
Of n~lo
for repairlng former German ships and
pared the other estimates down to
total O approximately 5000, 600 900.
J. was estimated when the last ap-
preparation bill was passed that the
board would have revenue of about
$500 100000 during the present fiscal
wear, exclusive Of It's revenue from
operating the merchant ships. The es-
innate included S60,0O000O balance
from previous appropriations. $40, O,O00,-
Oo0 from the War Department in set
tlement Of claims, S15.00O,00O from the
sal" OF ships already sold, S25 900 900
from the sale Of surplus materials and
$40 1000 600 from the sale Of additional
cargo vessels.
The claims against the War Depart
ment are stlil III dispute, however, al
tnough Admiral Benson, chairman of
the Shipping Board, expects to have
stead OF the expected 25,O0O 900, less
than one-half that amount has been
realized from the sale of surplus ma
terial-. TIE board also has found it
almost impossible TO sell its cargo
vessels and little revenue has come
flom that source.
Cargo Ships Operated at Loss
The operation of the governments
owned cargo ships by the board has
peer at loss most Of the time, al
tnouga the boards financial officers
faFe not yet been able to compute the
SIZE o. the loss Lack of demands for
ca'so space has caused the board to
orc = many Of its vessels tied up,
IN fe those tnat are continued in op-
sF9-ion are being forced to remain
eTertime m ports waiting for cargoes.
ne fr,lght rate war on the Atlantic
siso has been costly to the board and
has cut heavily into the boards rev
enues
The financial affairs Of the board. as
disclosed before the Walsh Investigate
ing committee in New York, have been
N Inldd.ed condition, and the
ooaro financial officers, working un-
oef directions from Admiral Benson,
nave oeer' trying for months to
stra 2hten them out. Officials of the
ooard could rot say to-day just how
much the Shipping Board is losing
saen day Or each week, but they are
convinced from the progress of the
Dlards accountants, that the loss has
peen 50 heavy that sl5O000 600 in ad
elsion to all receipts viii De necessary
% carry the board over for tho coming
ye2r.
, Admiral Benson SAID re expected to
;~'t conp-c.e rt4lements on tn.
toafs's Noa1e.al coalition ready for
f-- ca'--4 ... d snort time.