Evening star., 1923-09-13
INTEREST REEVES
IN u. S. SHIP SALE
Purchases by Dollar and
Grace Lines May Lead
to Others.
ny DAVID LAWRENCE.

Sale of a few government vessels
to the Robert Dollar and Grace lines
has revived the possibility that other
private interests might find it worth
while to make substantial bids for the
merchant fleet owned by Uncle Sam.
As long as private interests realize
the danger TO their business perma-
nently of having the government in
competition with them they will seek
to buy the ships, but thus far the pro-
posals made by most Of the private
concerns have not been deemed suffi-
cient The sentiment of the Shipping
Board has been opposed to the sale
of ships at what might be termed
give away prices. 1t is true that
the Shipping Board insists that cer-
tain trade routes be guaranteed as
consideration of the sale and this, OF
course, enters into the question or
whether a shipping company can
make a profit on the line 1t seeks TO
establish
Want Guaranteed Profits.
The present operators of govern
ment ships, who receive commission
which is shortly to be terminated by
the board. and the American steam
ship Owners Association have
pleaded \, h the Shipping Board to
make it possible for them to buy the
ships out Of the earnings of the lines
III the next few years. This would
mean, OF course, that the government
furnished the capital in the form of
existing ships and would receive
return on the investment only II the
lines are profitable. The idea has not
met with the approval OF the BOARD
The shipping people, however, IN,
SiSt that something can be worked
out whereby they will be enabled to
buy government ships. They argue
that their experienced personnel
might otherwise be turned into the
foreign shipping companies. The at
titude of the shipping commissioners,
on the other hand, is that they would
not be justified in giving away gov
ernmrut porperty at bargain prices
and that the potential value OF the
government fleet must be reckoned In
terms Of what the government Itself
might vet be able to do by efficient
operation of subsidiary corporations,
which will consolidate various es-
tablished lines.
officials Were Disturbed.
President Coolidge. for some reason
or other, has not been anxious to put
the subsidiary corporation idea into
effect quickly. President Harding ap-
proved ii and was ready to go ahead.
MIR. Coolidge has seen fit to hold up
the operation of the plan for further
advice. He announced first the ap-
nointment of a special committee con-
sisTing of two cabinet officers, the
chairman of the Interstate Commerce
Commission and q member of the
House and the Senate. The members
of the United States Shipping Board
looked askance at this procedure and
began to wonder what the functions
Of the Shipping Board really were If
matters Of Importance relating to
shipping We're to be submitted to spe-
cial committees. The Shipping Board
=. 4-,lf ses
gross and is an independent commits
sion unrelated to the cabinet depart
mentS in any way.
Mr.. Coolidge heard of this murmur-
ing and summoned the members of the
entire Shipping Board to the White
House, where he explained he had in
tended merely to seek the advice of
others beside the Shipping Board and
that he wanted to be sure Of the legal
ity of the plan. The general counsel
of the Shipping Board had passed on
the legality. but Mr.. Coolidge wanted
TO make sure the Department of Jus
come from the White House that if
the legal opinion is favorable the Spe-
cial committee will be asked to pass
on the Shipping Boards proposed
policy.
Against Government Operation.
The impression which disinterested
observers get is that influences have
dent to supersede the plans of the
Shipping Board with others more ia
vorable TO the disposition of the ships
IN quicker time to private owners.
The United States Chamber of Com
merce. headed by Julius H. Barnes,
an intimate friend of Secretary Hoo
Yer, who is to be member of the
Presidents special committee, openly
states that it believes the government
should get out of the shipping busi-
ness. The President is himself not a
government ownership man, and in
the face of the conflicting currents he
is proceeding with extreme caution,
hoping he can reconcile the various
viewpoints to the practical facts of
the situation.