Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-04-17
PRESIDENT AGREES;
RENEW BUILDING
Of VESSELS LIKELY

was served on all concerned after
a two-hour conference at the White
house Saturday that the Americana
merchant marine is to be main
tanned as going concern, either
under private supervision or I'M
der a straightout policy of govern
ment ownership ard government
operation.
! The statement was made at the
White House that President Har-
ding and members of the shipping
board who met with him to con-
slider the shipping situation were
unanimous in their opinion that
'the chief end to be sought is
the establishment and maintenance
of the American merchant marine"
"The statement from the con-
ference" Chairman Lasker said
later. means simply this: American
and foreign shipping interests may
be assured that so far as this gen 5
Grafton can see ahead there will be
adequate American tonnage to car
.ry any cargo offered to any port
of the world"
I With the conviction that private
operation has not yet been rele-
gated to the impossible, the con-
ference determined upon one more
attempt to turn over established
routes to private ownership. AS
IAN initial step, the forty existing
routes will be consolidated to in
sure more economical and efficient
operation, and then will be offered
for sale as going concerns, at auc-
ton, but with the stipulation that
only "justifiable" bids will be con-
sidered.
Conditional Sales
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 it's dealing with govern
ment operations. An example was
cited today in the case of certain
routes out of New York. An OPP
orator running ships to Amsterdam,
it was pointed out, might have an
outward cargo and the opportunity
to pick up return freight at Rot
terdam, but would be unable to
avail himself because of the exist
ence of a separate route from New
York to Rotterdam. The consolida-
ton will combine routes to adjacent
foreign ports under Il Single head
with the view of handling the same
amount of business with less ships.
1t is estimated that the number of
routes might be reduced to IS by
the consolidation and the number of
operators reduced in proportion.
Chairman Lasker said advertise
ment of the sale would be ready in
three weeks
"It must be understood" he said
the board does not contemplate
selling only the ;cream routes and
leaving the government stuck with
unproductive lines. If sufficient
routes are not purchased to insure
success of private operation, the
government will proceed to hold
them all, eliminate the agency sys-
tenn entirely, and embark upon a
program of aggressive operation
itse''"
In this event, he declared, the
board would be prepared to go be-
fore congress in December and ask
for a substantial appropriation for
new construction, the first to be I'M
dertaken by the board since the
war. Any program of government
operation, the chairman explained,
would include maintenance of JADE
quate surplus tonnage" to convince
competitors that the American mer-
chant fleet was not intended to serve
a temporary purpose.
Fee Operation Past
Regardless of the outcome of the
proposed sale of existing routes. the
day of the cost pts fee operators
is gone, it was announced officially.
Chairman Lasker characterized the
system as vicious" declaring it of
fered no inspiration either to the
agents or to government employees
to build for the future. In this con-
nection, it was learned today, the
board has a list in its files of gov
eminent operators who have main
tanned connections throughout their
service with foreign shipping lines.
Operators under the so-called IN.
Oh" contract, by which the agents
fee is assured regardless of financial
outcome, have been reduced from 80
to &c. and their privileges materially
restricted, Mr.. Iasker said the re-
operators would be dropped
If the government takes over opera
ton.
1T was continued he said, "in
the hope that the more efficient and
operators could be de-
veloped into prospective owners, but
this hope has been dissipated The
system was never comm .rcally
sound"
The chairman emphasized the
repugnance h felt toward govern.
ment operation.
81 despise the very idea" he said.
THE president and the board felt
that private ownership was the ideal
method assure American shipping,
but since the only way of obtaining
this has peen denied US, for one,
Will take any method which prom.
ses results"
Survey of the entire fleet will be
pushed in order that unsuitable ton.
mage may be eliminated speedily
md, in the meantime, ships not en-.
jagged in active service on govern
nent routes will be sold without re.
,trictlons at world market prices to
american buyers, if any are dis
covered.