Evening star., 1923-04-15
ENOUGH i. S. SHIPS
TO TAKE AMERICAN
CARG0ES ASSURED
President and Board Aqree
Merchant Marine Must Be
Going Concern.
PRIVATE SUPERVISION OR
BY FEDERAL OWNERSHIP
Auction of Ships After Routes
Have Been Consolidated
Efficiently.

Notice was served on all concerned
after a two-hour conference at tho
White House yesterday that the
American merchant marine Is to be
maintained as a going concern, either
under private supervision or under
q straight-out policy OF government
ownership and government operation.
The statement was made at the
White House that President Hariing
and members Of the Shipping Board
who met with him to consider the
shipping situation were unanimous in
their opinion that "the chief end to
be sought is the establishment and
maintenance of the American mer-
chant marine
The statement from the confer
ence," said Chairman Lasker, later
means simply this: American and
foreign shipping interests may be
assured that 80 far as this genera
ton can see ahead there will bs
adequate American tonnage to carry
any cargo offered to any port Of
With the conviction that private
operation has not yet been relegate,I
to the list of impossible things the
conference determined upon one more
attempt to turn over established
routes to private ownership. AS an
initial step the forty existing routes
Will be consolidated to insure more
economical and efficient operation,
and then will be offered for sale as
going concerns. practically at auction.
but with the stipulation that only
"Justifiable' bids will be considered.
A condition OF all sales will be that
the vessels concerned be kept on their
present routes
The consolidation is expected to
remove one Of the principal handi-
caps under which the board has
labored in its dealings with govern
nent operators. An example was
cited yesterday in the case Of cer-
tain routes out OF New York. An
operator running ships to Amster-
dam, 1t was pointed out, might have
an outward cargo and the oppor-
tunity to pick up return freight at
Rotterdam, but would be unable to
avail himself because of the exist
ence OF a separate route from New
York to Rotterdam. The consolida-
tion will combine routes to adjacent
foreign ports under a single head
with the view OF handling the same
amount of business with less ships.
Tn noduro
1t IS estimated that the number
OF routes might be reduced to
eighteen by the consolidation. and
the number of operators reduced in
proportion. Chairman Lasker said
advertisement of the sale would be
ready in three weeks.
TT must be understood" he said.
"the board does not contemplate sell
ing only the cream routes and leav-
ing the government stuck with un-
productive lines. If sufficient routes
are not purchased to insure success
of private operation, the government
Will proceed to hold them all. elm
mate the agency system entirely and
embark upon a program of agrees
sive operation itself"
In this event, he declared, the board
would be prepared to go before Con-
gress in December and ask for a sub
stantial appropriation for now con-
struction, the first to be undertaken
by the board since the war. Any pro-
gram of government operation, the
chairman explained, would include
int np
tonnage" to convince competitors that
the American merchant fieSt was not
intended to serve a temporary pur-
pose.
Cost Plus Fec Gone.
Regardless of the outcome of tho
proposed sale of existing routes, tho
day of the cost plus fee operators is
gone, it was announced officially,
Chairman Lasker characterized the
system as vicious" declaring it Of
fered no inspiration either to tho
agents or to government employees to
build for the future. In this connec-
ton, it. was learned yesterday, the
board has a list in it's files of govern
ment operators who have maintained
connections throughout their service
with foreign shipping lines.
Operators under the so-called M
O-4" contract, by which tho agents
fec is assured regardless Of financial
outcome, have been reduced from SO
to 80, and their privileges materially
restricted. Mr.. Lasker said the re-
naming operators will be dropped If
the government takes over operation.
"It was continued" ne said, "in the
hope that the more efficient and ambi-
tious operators could be developed
into prospective owners but this
hope has been dissipated. The sys-
| tenn was never commercially sound :"
The chairman emphasized the re-
pugnance he felt toward government
| operation.
| "The President and the board felt
| that private ownership was the ideal
method to assure American shipping,
| but since the only way of obtaining
| this has been denied us, for one will
take any method which promises re-
| suits"
Survey of the entire fleet will be
pushed in order that unsuitable ton
mage may be speedily eliminated and,
| in the meantime, ships not engaged in
active service on government routes
will be sold without restri cticns at
world markets prices to American
] buyers if any are discovered.