The Birmingham age-herald., 1923-03-27
ASKS RETIREMENT OF SH|PP|N BOARD SALE OF VESSELS
Steamship Owners Associa- ton Regrets Defeat of Sub-
 sidy Measure

WASHINGTON. March 26.--A rec ommendation that the shipping board retire from business, scrap all in ferior vessels and sell it's remaining tonnage to Amerlcan citizens with out any restriction was the basis of program submitted today by committee of the American Steam ship Owners association.
 The association further recom mended that all vessels not sold after reasonable lapse of time should be scrapped. and went on rec ord as being of the opinion that "an American merchant marine in for eign trade cannot be built up through government operation"
 The recommendations were in the form of letter signed by President Albert G. smith. It follows:
 Referring to the questions pro- pounded by the shipping board to tn } American Steamship Owners associ- alton. l beg to advise you that it is impossible for the association on a weeks notice to answer the ques- tions In detail or to formulate any comprehensive plan with respect to the disposition of shipping board vessels, which, however. is but ono of the many problems involved.
 "The failure to provide national aid places a most serious aspect upon the entire situation with respect to American shipping in foreign trade and makes the problem one which can be solved, if at all. only after more extended investigation.
 o o O
 Procedure Suggested.
 The association, however, regards the following procedure as funda- mental.
 .1 The shipping board and emer- gency fleet corporation should retire from the business of operating ships and place the operations in the hands of private owners.
 "2. The shipping board should inn mcdiately scrap such vessels as are inferior in design, equipment or con dition
 |, 8. The shipping board should of. fer It's remaining vessels for sale to American citizens without any re- stricton and without any discrin1i- nation between buyers
 A. After the lapse of reasonable time all of the vessels not sold under the foregoing plan and having no immediately prospective sale value sho,Ad be scrapped.
 "5. There are a few freight and passenger and mail services main tained by shipping Board vessels, the continuance of which may be re- Earded as essential to national in- terests. If the shipping board is un- able to find buyers for the vessels in such services they should be placed in the hands of private own CTS under an operating arrangement until buyers can be found, or devel- oped, or the impossibiity of profit able operation be definitely estab lished.
 Against Government Operation.
 "The association regards, as dem .onstrated by experience, that an American merchant marine in for eign trade cannot be built up through government operation. With . out national aid or radical revision of existing laws, privately owned merchant marine cannot be main tained, let alone created, or deve1- oped. Competition. or the menace of competition, by governments owned ships makes success the more cer- tanly impossible.
 "1n any plan that the shipping board may develop for the disposi- tion of its tonnage, due regard should be given to existing privately | Invested capital; otherwise 1t will spell disaster to the entire American shipping business.
 The committee which presented tn letter was headed by Mir. Smith, who is presden of the New York and Cuba Mail Steamship company. and included R. IT. M. Robinson, presi- dent of the United American Lines Gale H. Carter. president of the Pa cific Mail; F. J. Mccormack of Moore & Mccormack; C. N. Kellogg. of the Munson Line. and Winthrop L. Mar. win, vice president of the associs alton.