The New York herald., 1921-09-05
ship BOARD UNDER
HOOVER IN new PLAN
Cabinet Said to Favor Put
ting 1t in Department
of Commerce.
FOLLOWS UNION IDEA
Congress Joint. Committee
Also Believed to Approve
Reorganization.
COAST GUARD A PROBLEM
Some Sentiment for Transfer
From Treasury to Navy
Department.
COAST GUARD A PROBLEM

Special Despatch to THE New York HERALD.
Washington, d. c.. Sept. 4.
New York Herald Bureau.
One feature of the Forthcoming pro-
gramme for the reorganization OF the
Government departments will be the
transfer of activities of the United
States Shipping Board to the Depart
ment of Commerce. 1t is the under
standing tonight that this step has
been agreed upon by the Cabinet and
has the approval Of the Congress joint
committee on reorganization, headed
by Walter F. Brown. The sanction of
the Senate and House, OF course. is
necessary.
The proposed transfer is in line with
the opinion OF the Administration,
sponsored primarily by Herbert Hoo
yer, Secretary Of Commerce, that all
governmental agencies having in any
way to deal with trade and it's develop
ment. both domestic and international,
be consolidated under one>head. 1t will
permit. Mr.. Hoover believes, highly
Increased efficiency as well as reduc-
tion in the cost of operation.
The operation Of Government owned
ships. therefore. would be in charge OF
the Secretary of Commerce, and their di-
rection would be, 1t is argued. in accor-
dance with the best interests of foreign
trade. Ever at present the Shipping
Board cooperates with the Department OF
Commerce in the assignment of shipping
It Is the expectation that the Shipping
Board will remain an Independent
agency, even after the transfer of the
vessels to the Department OF Commerce
is affected, so that the claims and other
business may be cleared up. Chairman
Lasker. in letter to President Harding
not long ago. expressed the opinion that
all these matters might be adjusted
within a year. The officials are anxious
to complete the business as rapidly as
possible, but there are many claims out
standing and settlement Is difficult
When Chairman Lasker took the job
OF directing the board 1t was with the
understanding that he would not remain
in Washington permanently. President
Harding called on him to settle the
troubles of the organization. The other
members of the board are said to feel
that their positions are more or less tenn
porary.
something more OF u pTcUicih tuaH
that involving the activities Of the Ship
ping Board will have to be solved, natu-
rally, with regard to the United States
Coast Guard, which, according to the
original intention, also was to be made
a part of the Department Of Commerce.
The Coast Guard, now unit OF the
Treasury Department, was created to
prevent smuggling. but 1t developed later
into an agency for the protection of life
and property along the American coasts.
The recent efforts to smuggle intoxi-
eating liquors into the United States have
brought the Coast Guard into play again
with its original purpose.
There is certain sentiment for the
transfer of the Coast Guard to the
Navy Department on the ground that
the navy also performs the mission OF
protecting American shipping. Just whats
disposition Is to be made of the Coast
Guard. therefore, is a question bother
ing the committee on reorganization,
whose report is expected soon after
Congress reconvenes the latter part OF
the month.