Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-08-30
WAR ON SHIPPING
POLICY ADOPTED BY
HARDING CONTINUES
BY DAVID LAWRENCE
Ueased Wire Service to The Journal.)
(Cnnvriphf 1909 \


| WASHINGTON, Aug. 28.-Eforts
to change President Harding's ship
ping policy have not abated. The
American Steamship Owners asso-
citation and the United States Ship
| Operators association tomorrow will
appeal to the shipping board for
continuation, with some modification,
| of the present method of operating
| government ships through managing
agents.
The new suggestions involve a
much more efficient system of OPP
Grating ships through agents, but
does not guarantee the government
against losses, while insuring more
or less the profits Of the operators.
There is little likelihood of the ac-
ceptance/of the plan, as the shipping
board unanimously decided in the
presence of Mr.. Harding last tune
to do away with the managing agent
method and substitute a system of
subsidiary companies. The latter
scheme is being held in allegiance
out G. courtesy to President Coolidge
who has expressed a deSir to in
form himself about it.
Ship Boards Plan
The boards plan is substantially
as follows:
Instead of operating $50 ships as
at present under the emergency fleet
corporation, here would be organ
lied instead from twelve to eighteen
corporations which would be owned
in entirety by the United States gov
eminent. No shipping company in
private hands operates more than
fifty ships, and the purpose of the
division into subsidiary units is to
enable the government to build up
several units Of operation. Several
established lines would be grouped
in each company.
The experts estimate that each
subsidiary company with its own
organization would be able to econ
mize for the government and avoid
the duplication and endless account
ing which one organization encount
ers in auditing the various lines op
Grated by the emergency fleet cor
poration.
The United States lines are OPP
Grated by managing agents who col.
lects a commission on gross revenue
irrespective OF whether any profit
is made fer the government The
good will of the line belongs to a
private individual. When the time
comes to end government operation,
the government would have only its
ships. The boards plan now is to
build the subsidiary corporations ex-
actly as they would have to be or.
Ganized if private capital were to
enter the shipping business and buy
the ships from the government.
Chance for Profits
The government would finance the
enterprise and would get all the prof
it's if there are any. The object of
the plan is to cut down losses and
make the subsidiary companies at
tractive to prospective private pur.
2hasers. H. other words, if there
is any good will in the established
shipping lines, the government feels
that asset is derived from govern
ment investment and should bring n
return in cash just as much as the
actual property. That would be the
case if any British steamship line or
any other were purchased by CAPT
talists. For without the ships fur
nished by the government and a fa.
VOrabie Conlm1ssion contract, there
could have been no good will bull
up
The most intense pressure is be.
ing eXerted to prevent the shipping
board from putting into operation
the plan it has decided upon The
president is believed to have recog.
nized this and to have come to the
conclusion that when the boards
plan goes into operation it shall have
the whit le-hearted support OF the ad-
ministration.
An opinion has been asked from
the attorney general as to the lie
gality Of the plan. The general
counsel of the shipping board ano
prominent lawyers who have been
consulted say there is no doubt of
the legality.
Legitimate Scheme
In fact it is said the new scheme
is far more in line with the mer
chant marine act of 1920 than the
managing agent system. If the
boards plan is ovcrthrown, it may
be as a result of legal obstacles put
in its path, but the general belief
is that if President Coolidge wants
the plan used he will not be influ
enced by the criticism of illegalitv
in the face Of approval by the array
of counsel who have passed on it.
1t seems certain that when con.
gress reConVenies there will be AT
inquiry into the whole matter and
should it appear that private inter
ests have been able to damage the
morale of the governments shipping
enterprise, there will be even fur
Their restrictions imposed which will
insure government independence OF
private operation so long as thu
ships are owned by the government