The New York herald., 1921-08-21
Asks Congress to Cooperate
in Checking Losses and
Building Up Merchant
Marine for Company.
HUGE DEBTS A LEGACY
Letter Read i'm Senate Tells
of Sums Spent Without
Result-POints Way
to Solution
S200,O0O,OOO IN CLAIMS
HUGE DEBTS A LEGACY
5000, 100000 IN CLAIMS
Asserts Staggering Deficits
Can Be Remedied Only by
Competent Men to Con-
duct Business.

duct Business.
WASHINGTON, Aug. 2O.-The closest
cooperation between Congress and the
Administration In an effort to bring
Shipping Board losses down to mini
mum, was urged to-day by President
Harding In a letter to Senator Jones,
Republican (wash.), read to the SEN
ate during consideration of bill carry
ing S4S,500,0 900 for the boards activi-
ties The President said there had
been "unspeakable losses and unutter-
able wastes" which must be charged
to the war emergency.
Chairman Lasker's effort to get big
men to help in putting the board on
it's feet was approved by the Presi-
dent
At the same time there was pre-
sented a letter from Chairman Lasker
saving that sooner or later Congress
would be called upon to appropriate
5000 900. 900 in outstanding claims In
herited from the former Administra-
tion.
Must Remedy Situation.
The Presid ant's letter giving MS views
~ length on the general shipping situa-
tion follows:
.I could not fail to note the dissatis-
faction expressed in both House and
senate over the very unsatisfactory
condition of the affairs of the Shipping
Board and ths reluctance of Congress to
make appropriations for the continued
activities of the board without putting
specific restraints upon the boards ac-
tivities in employing agents of relief.
From your position you are probably
as familiar with the affairs of the
board as | am. and I hope you viii
make Ii point To lay the exact but
unpleasant truth before your colleagues
THE Shipping Board situation Is
wholly an inheritance from the previous
Administration. 1t would avail nothing
10 attempt to outline how this intol-
crable state Of afafirs came about. Our
great probl am is curing the situation.
The difficulty of this task becomes very
apparent to me, and had it's reflex IN
the delay in the final selection of the
shipping Board.
1T is no easy thing to bring capable
men to the solution of this task Chair
man Lasker is making a very heavy
:acrifice to give his time and talents to
this most difficult work He has been
able to bring many disinterested ad-
visers to his assistance, but Il Is inn
possible for the board in creating its
various departments to establish such
organizations by tho ordinary methods
Of Government appointment and COM
pensation.
Hundreds OF Millions Involved.
Many OF the men called to service
have been obliged to completely sacrifice
their private interests and In some cases
the sacrifice is made with the knowledge
that the period OF employment with the
Government Is only temporary. Under
these conditions and because OF the fact
that hundreds of millions are involved.
it Is unavoidable that some compensa-
lions in responsible places are much
beyond the ordinary run of Government
compensation.
There are approximately 5000, 0O0,-
900 In claims against the Ship
ping Board No business man would
venture upon the settlement OF these
claims without highly capable legal
representation The staggering losses in
operation can only be cured by a board
OF operators whose members know
something concerning the business
These men could not be secured without
giving up private pursuits which arc
vastly more profitable than the avera &c
administration salary under the Gov
ernment and Chairman Laslxer has pro-
cceded with my very hearty approval in
the acquirement OF men equal 20 this
task. If their knowledge of the business
win enable us to put an end to operating
losses. as we very much hope to do.
their requirements for Government SER
vice will be justified hundredfold.
THE error heretofore committed seems
10 have been the employment of In
capable men at excessive salaries, while
the present programme calls for capa-
bility. and the compensation is vastly
less than In private pursuits. ] have
been at some pains to assure myself that
there is no overpayment In selecting
men for specific places, and believe I
can assure you that this overpayment
has been avoided in recent appointments
II do not venture TO make promises
for the Shipping Board. / would like
tho Congress TO know we are speedily
arranging the discontinuance OF many
lines OF service which are being oper-
ated at loss 70 the Government and
we are hoping soon to have an end 70
al, the unfortunate charter contracts
under which the charterers are made
whole and share In the profits II any.
while the Government bears the brunt Of
all the ossee. This Is very intoierable
arrangement and is being ended as
speedily as the situation will permit.
1T must be kept in mind at all times
that the administrative agents who are
row asking for the confidence and the
cooperation Of Congress are In no wise
responsible for the condition Of affairs
which have shocked the country and
given the Congress such concern.
"Thoy have only recently been called
70 Inc service of correcting the ntolcr-
able stnte OF affairs which we inherited.
after which IL Is very much hoped they
may make gratifying progress toward
the firm establishment of an American
merchant marine.
I'VE must not fail in our efforts now.