New-York tribune., 1921-03-29
Shipping Board
Faces Deficit
OF Half Billion
Some Vessels Lose $35. 900
ON Voyage; Doubt i'm Wash
ington That Congress Will
Continue to Aid Project
One-Man Control Urged
Untrammeled Power Might
Solve Problem, Advisers
OF the President Suggest
By Carter Field

40 ohlNIloN, March 2s.-Gov-
ernment operation of the United
States Shipping Board fleet NAV result
IN such huge deficit that four or
hve hundred million dollars would
nave to be taken from the Treasury
to make up the loss, President Har.
ding has been told by advisers in the
last few days.
winch may explain why the pres,-
dent asked newspaper men, at his Last
conference with them, to "record that
sign when he. was asked about tho
shipping Board problem.
some who have studied the situation,
40 not agree that the amount which
congress may have to appropriate "a
,eep the ships on the seas will be as
,arge as the sum mentioned, but prac-
.icasly all concede that the figure will,
Re staggering when it is submitted ~
congress by the President. NA ~
Some Favor One-Man pow.r
Mr. Harding is known to be crave,v
ta;.',s1 tonIeineo about the problem. Cer.
had hbainiy up TO the last day or two he
4au worked out no solution satisfactory
,,,1 w ni"seH. s Some of his advisers have
of the Shipping Board onarot;aa no a4alge
armed with supreme authority, and AZ lat
mat man work out the problem With.
out strings upon him. This mans =
the advice should be taken bv Tho
PRESIDENT, would have author;ty fnr
example, to sell any or all tho sb;ns
he. might think best, for whataveer
prices he could get. %
AS evidence of what is roinc nm
the President has been told that sh;ns
oelng operated by the government in
some instances are netting losses on
each voyage, ranging from $35,OOO up
TO $oo'ooo.. There are two sides to the
PlcIure' OF course, but Congressional
leaders who have been studying the
SITUATION DO not believe that Congress,
especially at time when the Repub-
mean majority and the Administration
are making a desperate drive for econ
omy IN order to reduce taxes, Will
vote any such huge amounts as will
be necessary to keep the project going.
This feeling in Congress. it is de-
clared, will help the President should
ne make up his mind to put one man
IN supreme power. Such step would
require legislation, and CONGRESS-
grants unlimited authority to individ
uals sparing1y, in other than war
times. But, it is asserted, no one
could work out the problem satisfac-
torliy from an economic standpoint if
has been
The case is cited where Judge John
Barton Payne, then chairman of the
board, attempted to sell some ships.
From the clamor that was raised
visitor, it is said, might have suspected
t1at his move to save the government
money was the worst sort of treason.
The vessels were not sold, and part of
the de!icit which is rolling up is de-
clared to be the result of that inter
ference.
Economy Counterbalances Pride
ihere is little doubt that the ma
lsorlty sentiment in Congress is in
favor of merchant marine The
average member of the Senate and
House likes to see the American flag
on the seas, and he likes even more to
talk about it. A canvass in the Sen
ate and House Office buildings dis
closes however, very few men who are
willing to vote substantial sums of
money. for that purpose There are
even fewer who are willing to give
nuge sums Tor subsidized govern
ment-operated fleet.
President Harding, his advisers saw.
has been hopeful that he could find
some man of extraordinary ability to
become chairman of the Shipping
Board. He has offered the post to at
least three men whose caliber he re-
CARDS as sufficient, and all three have
declined. Two, it is said, gave as the
reason for their refusal that they OBJ
Jected to a seven-man board--to anv
board at all. They made 1t clear that
they believed in the one-mgr. control
principle for such an enterprise. The
third is said to have declined because
he did not care to undergo such ex-
periences at the hands of Congress and"
the public as have been endured bv
Denman, Goethals, Hurley, Payne and
Benson.
In this connection it is pointed out
that the work facing the Shipping
Board now is vastly different from
what it was during the war. Then if
was the building Of ships, quickly, the