New-York tribune., 1921-01-05
Hope Senate Will
Give Some Aid to
The Shipping Board
Marine Interests Protest
Against Effects Which
Would Result From the
Withholding of All Funds

Belief is expressed by shipping in
terests here that the Senate will act to
prevent the Shipping Board and the
Emergency Fleet Corporation from be-
ing left without funds to meet obliga-
tions already incurred. Chaotic as
shipping conditions are at present, it
is pointed out, to leave the board and
the corporation with practically no
financial aid whatever, as is proposed
by the House Committee on Appropria-
tions, will bring about a state of af-
fairs that can only result in a serious
setback to the new merchant marine.
The real financial sufferers, it Is
stated, would be the private shipping,
shipbuilding, ship repairing and ship
supply interests who have claims
against the government for work and
material and who now face the likeli-
hood of their bills not being settled,
or OF waiting an indefinite time for
payment. These claims alone would
run into hundreds Of millions Of dol
lars, it is said.
To attempt an immediate liquidation
OF the Shipping Boards affairs, it is
said, Is out of the question. For the
board to cease functioning on any
gwen day in the near future, with its
vessels .ttcrcd in foreign ports and
on the HIGH seas the world over, would
produce . situation, shipping men de-
clare. that would deal severe blow to
the country's credit and trade reputa-
tion
How the development of the mer-
chant marine Will be affected by the
drastic reduction of approximations
asked for is indicated in a statement
issued by the National Merchant Marine
Assoc iation, with headquarters at
Washington. which says:
"Curtailment of Investigations planned
by the Shipping Board before enforc-
ing several sections of the merchant
marine act of 1920 may be involved in
the action of the House Appropriations
committee in cutting down the appro-
prlation for the next fiscal year from
SS98,0O to s459,000. This sum was
asked for the work of the board itself
as distinguished from the Emergency
+ !eet Corporation.
"The amoant allowed by the com
mttee is 1000 less than that 20 granted u
Tor the current year, despite the fact
that there are now seven commission
ers at $4,000 eaclt in place of five al
$500 each
The House committee eliminated
entirely the approximation of STAT 900.
600 asked for the Fleet Corporation for
the year beginning July |, 1921. and
recommended that the present system
be continued, which allows the corpora
ton to finance itself from its income
from all sources, including operations,
sales OF ships and surplus material
'This would nullify the provisions
OF the merchant marine act which d-
rect that at the end Of the current year
the board and the corporation shall
turn over all records to the Treasury
and shall eXpend only funds appropri-
ated by Congress. 1t is understood that
Shipping Board officials are inclined 20
favor the plan recommended by the
House committee, as it is difficult for
business organization of the charac-
ter Of the Fleet Corporation to fore
cast its needs in submitting an esti-
mate to Congress-
Since the issuance Of this statement.
however, the House has decided that
the Appropriations Committee had over
stepped its authority and attempted to
legislate, with the result that, as mat
ters stand, the flrds on hand on July
, / must be turned over to the Treasury
and the corporation must continue on
funds appropriated by Congress. If
none are appropriated the corporation
viii have nothing to go on with.