Evening star., 1923-06-11

Chlef Justice Mccoy VIII pTeSlue
from July l to Is; Justice Bailey
from July 1s to August S; Justice
Siddons from August to "a;
Justice Hitz from August 25 to
September II and Justice Hoehling
from September 13 to October /.
T. therefore, recommend the sale of
these ships at the best prices obtain
able, not only to private American
owners. but to foreign owners. 1t is
the nation like ourselves which is
seeking to promote an overseas mer-
chant marine that desires most of all
conditions, and these condl-
tions can only be brought about by
the elimination of this surplus tom
mage. For this reason I recommend
tnat the board be authorized to scrap
all of these ships for which it is un-
able to find a purchaser at home or
abroad"
Gives Boards Accomplish ments.
In the letter to President Harding
Mr.. LaSker gives a report OIL the ac-
compliShments of the board during
the two years of his chairmanshtp.
Among the achievements he men
tionS are the settlement at II cents
on the dollar of claims aggregating
5000. 100000; the bringing of the
Fleet Corporation out OF
chaos into an economic. efficient ana
distinct entity; the reduction of its
deficiency from s16.000.000 d month
to S4000.000 a month; the develop
ment of commerce through the OPP
GRAFTON of American ships and the
of surplus real estate ana
At the end of the current
fiscal year the shipping Board VIII
have on deposit in the Treasury, Mr..
Lasker states, s125, 100000. as against
"A total cash reserve of $4.OO0,0OO IL
had when Mr.. Lasker took office:
In rendering me this office. the
letter continued, you were under no
illusions As to the stark hopelessness
which. to many, the situation pre-
sented. You spoke of the mess so
great and 50 unbelievable but you
did not fail to inspire me with your
own confidence that a way would be
found to bring order and progress out
of the chaos that awaited you in this
department when you assumed the
presidency.
Doomed to Disaster.
''On that day the investment of
public funds by the Shipping Board
was thrice that of any commercial
had been extended in futile endeavor
over every sea and to every world
pora. 1t was d wartime effort, justi-
fable and praiseworthy in it's mo-
tives. but, having been conceived in
Il great world crisis. it was doomed
to the disaster which awaited any
attempt to create a maritime power
by compressing into months the
natural growth of generations.
losses SI6.OOO.OOO n Month.
The administration of the fleet was
not remotely competent. Shipping
Board boats had lost the confidence
of American exporters and competi-
tors stressed the inadequacy of the
service as ecectiye argument against
it's use either by American or foreign
shippers. The reasons for this fall
ure were neither obscure nor unnat-
ural. From Americas meager mer-
chant marine. as it existed before the
war. it had been possible to recruit
relatively only few men competent
to operate ships, and upon the con-
clusion of hostilities most of these
men. more or less precipitately, re-
turned to private life. The deficits
in operation were averaging S16,000,-
600 month.
Thousands of disputed accounts for
ship operations. not including claims
some of them involving millions of
dollars - remained in controversy,
with quite inadequate accounting rec
ords of their history. When proper
accounting methods were introduced
large accounts were found outstand-
Securities of all sorts which had been
received from the sale of Shipping
Board properties were found in many
instances to be loosely drawn and
general carelessness existed in con-
nection with the assets and liabilities.
Open Accounts Adjusted.
"These open accounts are now ad-
justed, securities have been properly
exchanged or negotiated, and many of
af
fiscal year from liquidation alone the
Board will have on deposit
in the Treasury. either in the con-
struction loan fund or for covering
into the general fund, $125,000.00O. as
against the fact the day l assumed
the Shipping Board was $4.000.000.
"One of the problems the new board
had to solve and which at first
seemed unsolvable. was the situation
as regards fifty-six shipping COM
panies who had bought 1S4 ships, ag-
gregating 9o7.241 deadweight tons,
exclusive of tugs and barges. from
the board at wartime prices, on which
they had made comparatively small
the board holding mort
gage notes for the balance due, and
who found themselves bankrupt or
facing bankruptcy by an 80 per cent
decline in the value of their ships. 1t
settlement program that would be
fair to all. resulting in the saving of
forty of these concerns, who thereby
have been preserved for the American
flag. l will not here dwell on the
problem of the disposal of 2S5 wooden
ships which cost over $500, 900, 600 to
build and which had no peace-time
value.
Most Complete System.
Now, the most complete and accu-
rate accounting system in the gov
ernment service exists in the United
States Shipping Board, and, as the
director of the budget has recently
stated, the Shipping Board is the
monthly trial balance. BY June 80
we will have practically settled. at
less than - cents OH the dollar,
claims involving cash and materials
amounting to the full S150,000, 900.
There remains unliqufdated a negli-
gible amount representing claims
which, in the opinion of the board,
must be forced into the courts.
The two years period which I un-
dertook to serve having expired, !
now tender you my formal resigna-
tion, effective June IL. In so doing ]
must express my appreciation of the
splendid spirit which you have con-
stantly given the board. of your self
sacrifice of larger personal interests
in our behalf, and of your vision of
an American merchant marine, which
never failed to inspire and sustain US
and which alone has brought order
and progress out of chaos.
der You viii always be tho gTfa1
honor of my life.
Respectfully;