New-York tribune., 1922-09-23
League Advised Lasker Replies
To Keep Out of To King Query
Trouble i'm East On Giant Liners
Board Asked If 1t Would
Lend Is Million for Two
10000 Ton Ships, but
Gave No Pledge, He Says
Total Cost $4,000, 900
Private Capital Ample Safe
guard, He Asserts; Denies
Propaganda ON Subsidy

WASHINGTCN, Sept. 22--In the
closing minutes of the session to-day,
Senator Jones, Of Washington, put into
the Record in the Senate letter from
Chairman LaBker Of the Shipping
Board, in which Mr. Lasker replied to
the resolution Of Senator King, intro
duced September IL. and denied allega-
tions made therein.
The King resolution called for ra-
port whether the Shipping Board iii
tended to finance the construction Of
additional ships by private parties, the
details of such plan, IL there was one,
and the amounts expended by the board
in propaganda to promote ship subsidy.
In his resolution Senator King said
it was alleged that the chairman Of the
Shipping Board announced in the news
papers that the board intended IL the
subsidy bill becomes law to advance
to private parties $25 100000 to finance
the construction of 70,000-ton ship
and that the board desired to expend at
least $400,000000 to finance construc-
tion of ships by private parties. Seria-
tor King in the resolution also set
forth it was alleged "that officials
agents and employees Of the Shipping
Board, under the guise Of hearings and
otherwise, are carrying on a propa-
ganda in favor of the ship subsidy bill,
and are spending large amounts of pub
n ar,o
therance of such propaganda"
Denies Pledging Cash
Answering the allegations, Chairman
Lasker said he never made any state
ment that The Shipping Board intanded
to advance private parties $2b ,0OO. 600
TOR the construct!on OF ships. He adds
that he told newspaper men that the
board had no formal request for ed
yances for construction purposes, but
that in an informal way new companv
which was being projected on paper
asked whether the company could bor-
row as much as $25, 5,o00,000 il it nut
@9o, ,o0o,0OO or its own money into new
snlPs or winch two would be 70,OOO-ton
ships '0'' -
Il explained to the persons making
the informal inquiry" said Mr.. T,asker
that they would have to organize thia
company formally, pay In their monev.
submit the definite plans Of ships, and
at such time the matter would be
taken up With the entire board"
Mr. Lasker feels that those who
made the inquiry "are serious in. thei,
desires. to. build ships that will bs
crown jewels in our merchant marine "
tie adds that whether they will pro
% ceed will depend on the fate of the
subsidy bill, but in the interim thew
are en- having plans drawn for their ships.
:, me most encouraging moment in
the history Of Americas merchant ma
rne," continues Mr.. Lasker. "will he
that moment when private parties ac. ~
tualiy subscribe s45,Ooo,ooo Of their
own money. to put into $4,000, 900
worth Of ships, and the government
will receive full security for its nd
vance. The ships we own were built
with immense waste and at immense
loss to the government. Ships built
under the loan fund will prove to be a
great national asset and will never
cost the government one cent out OF
the Treasury"
Summer Hallucination"
Mr.. Lasker said the allegation the
board desired to expond s4OO, 100000
to finance construction Of additional
ships by private parties is Summer
hallucination."
II know nothing" he says, "of any
sums In contemplation for the financ-
ing Of construction for additional ships.
"No application has come from any
one Tor any loan out Of our construc-
tion loan fund, though at the present
moment we have $25,0o0,000 in that
fund which was recovered for that pur-
pose from last years liquidation."
Chairman Lssker says he ardently
hopes the shipping bill will pass next
session because of the hope and belief
Of the board that if it does appIica-
tions will be made for loans from the
construction fund.