The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-05-14
TWO LEADERS
IN LINE FOR
SHIPPING JOB
Farrell, President of United
States Steel Corporation,
and Teagle, Head Standard
Oil Company, Mentioned.
AFFAIRS ARE IN TANGLE
BY MARK SULLIVAN

bh MAhN SULLIVAN
WASHINGTON, &C.. May II
Everybody in Washington under
stands that President Harding's long
delay is naming a new shipping board
has been due to his wish to get the
biggest possible man for the job. Prac-
tically everybody believes that the two
big men whom President Harding has
considered are James Farrell, presi-
dent Of the United States Steel corpor-
alton. and William Teagle, head Of the
Standard Oil company.
Gossip in the most authentic sources
says that President Harding ever
since he first gave thought to the sub
ject, when he was in Florida, in Feb
ruary, has been eager to get one or
the other of these men. To both the
men the acceptance Of the job would
of course mean great sacrifice. 1t is
not merely that they would sacrifice
their earning capacity in their present
positions, they would suffer further
sacrifices in the fact that under the
law, it would be necessary for them
to sell every security they might have
of sort that would conflict with the
interests of the shipping board.
Some Favor TeagIe
How either or both of these men
may have felt about such approaches
that may have been made to them. no.
body knows. The more thoughtful
students of the problem in Washing
ton believes that Teagle would be the
better man. They say that while Far
rell is extremely able he has the lesser
elasticity of greater years. Also they
point out that Farrell is the type of
captain of industry, who has come up
from the ranks. who has been a work
man in the yards himself and who. as
is often the case with this type of man
is more rigid and uncompromising to-
wards labor than men of a different
experience.
Teagle is a younger man, whose
training has included more that is
academic and who has shown a greater
sympathy toward the modern point of
view about the relations Of capital
and labor. TeagIe is credited with in
venting and putting into effect those
devices for cooperation with labor
which makes the Standard Oil COM
pany one of the most modern Ameri,,
can industries in this respect
The difference in desirability be-
tween the two men is not great, how
ever. and it is recognized that if
President Harding should succeed in
getting either of them he would go
far toward solving what is unques-
tionably the most embarrassing busi-
ness problem the government has.
Is Serious Mess
The public generally does not rec
ognize what very serious mess the
shipping board is in. Senator Edge
the other day said that the govern
ment is losing million dollars a day
in the mere upkeep of idle ships.
Officials familiar with the situation
do not admit this. They say that the
idle ships are tied up in units of eight
ships i'll a group, with the entire group
cared for by skeleton crew main
tanned on one ship.
They say that $100,o0O.O00 a year
will cover the governments loss in
taking care of idle ships. But, whe-
ther this estimate of $100,0OO,0oO a
year is correct or whether Senator
Edges estimate of $3.50, 100000 a year
is right in either event the ships are
a monstrous source of loss and waste
Taking the ships that the governme ent
owns as a whole, they are worth today
close to a billion dollars less than
they cost to build.
Must Take Loss
Government must take the loss
whatever we do as a matter of policy
as to the future, and whoever is chos-
en- as head of the shipping board there
is probably no way out except to
charge off that billion dollars as one
of the expenses Of the war, just like
the cost OF shells and rifles.
1t is true that there was a time
when we might have salvaged most of
this money. For fully year after
the war ended the price of ships was
high. and they were in demand all
over the world. Mr.. Farrell himself
the other day estimated that at any
time during 1919 the United States
could have sold the ships which are
now a burden to it at a price that
would have saved the government
$500 200, 900
There is no possible description of
the governments shipping expert
ments except as that of a discouraging
weller of mistakes.
Results Coming Back
The results of old mistakes are com
ing back today. Soon after the armis-
tice the shipping board. in hall
hearted way. sold a good many ships
on long term installments. In it's Gag
erness to make sales the government
occa siona lily sold the ships to compan-
les not financially stable.
With the present depression in
business, many of these companies
are now failing. and the government
is in the most uncomfortable and
expensive position of mortgage
taking over property Of doubtful
value.
Whoever is appointed chairman of
the shipping board. the policy un.
doubtedly will be to liquidate this ex-
pertinent very largely. We shall give
up the early ambition we had to main
tain subsidized shipping routes all
over the world. We shall probably
pick out a few main routes and be
content with maintaining ships on
these.
As to the enormous amount of idle
ships the government owns. We shall
pursue a policy of getting rid of them.
If we cannot sell them, we shall prob
ably give them away. The time may
Continued on Page Nine)