Evening star., 1921-08-21
Declares "UnpIeasant Truth
Must Be Met, in Letter to
Senator Jones.
FORMER ADMINISTRATION
BLAMED FOR CONDITIONS
Emphasizes Difficult Task Ahead in
Asking Co-0peration-Praises
Sacrifices of Present Personnel.

President Harding yesterday came
to the aid of the senator's who are
seeking to have the Shipping Board
deficiency appropriation bill passed.
The bill has met serious opposition.
The President urged that there be
the closest cooperation between Con-
gress and the administration in an
enort to bring the Shipping Board
losses down to i minimum, in a letter
addressed to Senator Jones of Wash
ington. in charge of the bill. The let
ter was read to the Senate. The bill
carries $4s.500.00O for the boards
activities.
Chairman Lasker's effort to get big
men to aid In putting the board on its
feet was approved by the President
who said If they could end operating
than justified.
| At the same time there was present
ed a letter from Chairman Lasker say.
Ing that sooner or later Congress
would be called upon to appropriate
$300.000.000 in outstanding claims in.
herited from the former administra.
ton.
| Text Of Letter.
| The Presidents letter giving his
views at length on the general ship.
ping situation follows:
Il could not fail to note the dissatis.
faction expressed in both House and
Senate over the very unsatisfactory
conditions Of the affairs of the Ship
ping Board and the reluctance of Con-
gress to make appropriations for the
continued activities Of the board with.
| out putting specific restraint upon the
boards activities in employing agents
| Of relief. t@.,= .,.ss-f.@z-s.fs>iS
From your position, ~ assre prob-
ably as familiar with the affairs of
fthe board as I am and / hope you
| Will make it point to lay the exact
but unpleasant truth before your
colleagues. rF
'The Shipping Board situation is
! wholly. an inheritance from the pre-
| vious administration. 1t would avail
nothing to attempt to outline how
the intolerable state of affairs came
about. Our great problem is curing
the situation. The difficulty of this
task becomes very apparent to me,
and had its reflex in the delay in the
final selection of the Shipping Board
Dimeult Task.
ut was no easy thing to bring
capable men to the solution of this
task. Chairman Lasker is making a
very heavy sacrifice to give his time
and talents to this most difficult
work. He has been able to BRING
many disinterested advisers to his
assistance. but 1t is impossible for
the board, in creating it's various de.
partments. to establish such organi.
cations by the ordinary methods OF
government appointment and com.
pensation.
Many Of the men called to service
have been obliged to completely sac.
rifice their private interests, and II
some cases the sacrifice is made with
the knowledge that the period o.
employment with the government i.
only temporary. Under these condi.
tions. and because of the fact thai
hundreds of millions are involved. I,
is unavoidable that some compensa.
tions in responsible places are much
beyond the ordinary run of govern.
ment compensation.
There are approximately 5000. 900,
900 in claims against the Shippint
Board. No business man would ven
ture upon the settlement Of these claim,
without highly capable legal repre-
sentation. The staggering, losses IL
operation can only be cured by a boart
of operators whose members know
something concerning the business
These men could not be secured with
out giving up private pursuits whicl
are vastly more profitable than tn,
average, administration salary unde
the government and Chairman Laske
has proceeded with my very heart,
approval in the requirement Of me,
equal to this task. If their knowl
edge of the business will enable u
to put an end to operating losses, a.
we very much hope to do. their &C
iquirements for government Nervic
will be justified hundred fold.
| Hits at lncompetency.
'"The error heretofore cornmitte,
seems to have been the employment
OF incapable men at excessive salaries
while the present program calls TO
lcapability. and the compensation
vastly less than in private pursuits
lI have been at some pains to assur
myself that there is no overpaymen
in selecting men for specific place.
/ and believe can assure you tha
this overpayment has been avoided Il
recent appointments.
II do not venture to, make promise
for the Shipping Board. would lik
the Congress to- know we are speedil
larranging the discontiuuance OF man
lines Of service which are being, op
Grated at loss to the government
and we are hoping soon to have a.
end to all the unfortunate charte
contracts under which the charterer
are made whole and share I'm tn
profits, II any, while the, governmen
n hears the brunt Of all the losses. Thi
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