The New York herald., 1922-01-19
SHIP BOARD FREE
FROM DEBT JULY 1
Statement Is Based on Passage
of 10O,459,0O0 Appropria-
tion Now Sought.
ONLY CLAIMS LEFT OPEN
House subcommittee Told YES
sells Eventually Will Bring
Vast Sums to u. s.

WASHINGTON, Jan. 1S.--Confidence
that by next July the Shipping Board
will be free from debt, except for pos
sible court claims pending against It,
was expressed to-day in a statement by
the board summarizing testimony of its
officials at executive hearings before the
House subcommittee which drafted the
Independent Offices Appropriation bill.
The measure. which will be taken up by
the House tomorrow. carries $l00,459,-
900 for Shipping Board expenses during
the coming fiscal year. of which $780,
100000 is for the settlement Of claims
out of court.
The bill also would continue the use
of such portion Of the $55,000.o00 from
sales authorized year ago as remains
fiscal year and would prohibit the board
from paying to the navy a liability Of
$16.000.000 growing out of, work done
for the board by the navy.
The estimate Of the boards financial
condition at the beginning OF the coming
fiscal year Is based on the expectation
that Congress will approve the recon-
iuendation that the $55,000.000 be made
continuing, and the section relative to
the navy liability The boards state
ment expressed the hope that subsequent
legislation would be enacted forgiving
the debt to the navy.
Outline of Finances.
The board estimated that by the end
Of the current fiscal year 1t will have
realized only $25, 100000 out Of the $685.
100000 authorization. With cash on
hand July / last, together with current
appropriations from Congress, $12,O0O,-
900, deficiency to be voted for construc-
ton, $25 100000 from the liquidation or
the $55,000,000 allotment and by reduc-
ing the amount in hand to agents some-
thing over s4,000,Qoo, and the forgiving
OF the navy debt according to the boards
statement, it will have sufficient funds
to nav ali debts within $12.O00.000.
If the $55,oO0,00o is made continuing
It is estimated that $30,0o0.o00 will be
left for the board to realize in the COM
ing fiscal year, which would pay the
$4,000 900 deficit, leaving an $1s.0oO,-
600 balance. This amount the board
said may be needed to finish recondition-
ing of former German ships and Tor
liabilities which have not yet been 10
Gated.
Summarizing its liabilities. the board
estimated that its operating loss for the
current fiscal year would be $56, 600.
IL reported in its liabilities $65.0O0,000
in current debts, including $9,0OO,00O
due the navy prior to last July l.
$1,000 900 debt to the navy uncovered
since that date, 1,00o,00o for compile
tion Of new vessels. authorized pre-
viously IS, 900 for reconditioning the
Leviathan, s5,765,000 assumed obliga-
tIcns of the United States Steamship
Company for contracts entered into pc
fore the present board assumed once
and 100000 for sundry debts.
Pay All but Court Claims.
If the sections Of the appropriation
bill applying to It are approved as
drafted the board figured 1t could settle
every debt it has, known and contingent.
save such as may come from the SETTLE
ment of court claims.
'If these things are done that are
now asked" the statement declared, "the
board will be free from debt except
court claims and have left its ship mort
cages and its ships" These. the board
claims. can be liquidated to bring vast
sums into the Treasury II Government
aid is given to shipping.
In it's calculation the board went on
tho assumption that Congress before
July 1 will approve deficiency appro-
priation of $12.000,000 for construction
work.