Evening star., 1921-09-17
SEES REDUCE COST
OF SHIPPING BOARD

~ W Buu tuSSy SSs AukD
Chairman Lasker Hopes to
Keep Operation Losses
| Within $60,000,000 a Year.
"The Shipping Board is getting in
sight of the end of the need for ask
ing great sums for operations from
the nation" Chairman Lasker an
nounced today At the same time the
chairman said he hoped to keep losses
from operation within $6O.00O.000 a
year until the beginning of the fiscal
year 1928, or an average of $5.00O.000
month. These losses. which accrue
both from the Shipping Board and the
Emergency Fleet Corporation. he said.
do not take into account payment OF
claims from law suits or admiralty
claims.
Total Outstanding Claims.
Outstanding claims against the
board, he said. total between $15,OO0.-
900 and $4,000. 900, but to Offset these
there are millions of dollars due the
board on back debts which the board
hopes to collect. The chairman an
nounced that for the month of July,
the first month for which complete
accounts could be made up since the
new board was appointed. the operat-
ing loss was $5.70O.OOO. On cash pay
ments the loss was $9,300.000. This
compares, the chairman said. with an
average of operating losses under the
s1O.OOO.aOO and s12.OOO.OOO a month.
The chairman said he wished to
convey to the man on the street the
impression that the time has arrived
when the Shipping Board can look
forward with hope to a period with
in the not far distant future when
the drain on the Treasury brought
about by vast sums lost on account
of operations will be brought to an
end. This condition. he said. hinges
on several developments. chief of
which is a better outlook for world
trade. World shipping during the
past three months, he said. has gone
through a period of depression for
which there is no comparison in mod
ern shipping history. Passenger fines
are losing money generally.
IF this Is the case in private in
dustry, the chairman said. how can
the government be expected to do a
great deal better?".
Loss May All BE Wiped Out.
'1f world business improves" he
added. 'the whole operating loss Is
expected to be wiped out. In addi-
tion. as we collect back debts due
the board our appropriations will be-
come smaller until we hope there will
come a time when the receipts and
expenditures will balance. This con-
dition, naturally. depends on resump-
tion OF normal world trade condi-
tons and full coming into power of
the Jones merchant marine act"
TNpI
said. the board is expected to be run
within an appropriation of $780,
100000. outside of payment of ad-
mfralty and lawsuit claims. The two
appropriations for the current year
and the next fiscal year. the chair
Board over until the Jones act is In
effect and world trade has improved.
The chairman further said il the
BOARD can get to a point where it
can sell its ships and shipyards. more
than enough money will be realized to
pay law suits AM CLAIMS
Mr.. Lasker made public a letter to
Gen. Dawes. chairman of the commit
tee on the budget. in which he said
even though the board keeps within
the Presidents commitment of S1OO.
100000 for the present fiscal year, it
appropriation of $26.5OO, 600 to
complete vessels now being construct
ed, which were ordered by the old
board. and to pay losses of operations.
we have made budget of s1DO.peO,-
900 and are curtailing our operations
accordingly" the letter said
Total OF Appropriations.
We have so far been given s4S,5o0,-
600 for appropriations and $25.UGO,-
of $73, 100000. 1t is possible that We
Will need S6.000,000 or more additional
for the vessels now being completed
However. If it is decided to recondi-
tion the Leviathan, we will need $S,-
100000 to $10.000.000 for that purpose.
However, we wish to call to your
attention that we have large receiv-
ables and assets which we took over
from the prior Shipping Board. We
are hoping to collect therefrom $780,
100000: II we are successful in that
we will be able to pay claims up to
ed Congress votes us the rest of the
$100, 900, and further provided
Congress lifts the ban on our paving
claims. But if Congress does not vote
us the balance of $10.00O,00O we will,
need all the money we can get from
collections to operate even on a curtail-
ed basis. and should it be decided to re-
condition the Leviathan we will not
only need the $100.000.00O from Con-
gress, but we will need a great share
Ol dlf thc IOHey we Will cOlleCt to
do this reconditioning. and to that
extent could not settle with any
claimants.
S2O,OOO.OOO Due the Navy.
''All of this does not take into con-
sideration the sum of $4,000, 900,
more or less, due by us from the days
of the past to the Navy. When we
give the figure of $2O.oo0,o00 as due
the Navy we want to make clear that
the amount involved has never been
determined between the Shipping
Board and Navy, and at an early date
we are going to have a matching of
accounts.
I'VE have always gone on the basis
that we would not be asked by the
Navy to pay this amount. and, in fact,
the Navy. has been very indulgent.
Should the Navy require this sum for
their own appropriations it will be
necessary for us to go to Congress
for a special appropriation. because
we could not possibly operate with
$100,0O0.000 this year and meet the
old obligations to the Navy. which
accrued before the present board ever