Evening star., 1923-08-28
SHIP OWNERS ASK
END Of FEDERAL
FLEET OPERATION
Present Plan for Ultimate
Private Purchase, With
U. S. Bearing Loss Now.

Government operation of the Ship
ping Boards merchant fleet was op-
posed. and the plan Of the American
steamship owners for operation and
ultimate purchase of the fleet was
advocated instead by representatives
of the steamship owners and manag-
Ing operators at a conference today
with members OF the board.
Gale H. Carter, vice president of
the steamship owners association
and president of the Pacific Mail
Steamship Company, declared that
'all business men" agree the govern
ment cannot conduct a commercial en-
terprise ''as efficiently as private citi-
zens skilled in the business" He ex-
pressed the opinion that representa-
tives of the board and of the opera
tors could. working together. even
tually evolve a plan for operation and
ultimate private ownership. The
losses suffered by the board, he said,
could thus be materially reduced and
the board gradually retired from the
shipping business land left free to
exercise its proper governmental
function as supervisory body"
SucCcSSs
I'VE call your attention to the fact"
he added. that the maritime su-
premacy of Great Britain is largely
due to the close cooperation between
the government and the private ship
owners
Ira A. Campbell. general counsel
for the owners, in submitting a brief
in defense of the operators plan.
which the board recently rejected,
charged that under the government
operation political considerations in
terfered with the boards efficiency.
Commissioner Thompson Immediately
demanded that specific instances of
political interference be cited. and
Mr.. Campbell replied that men had
been placed on ships at the behest of
representatives and senator's, and
even members of the board, who were
not experienced in shipping matters
and were otherwise incompetent.
Want U. S. to Bear Loss.
Commissioners Plummer and
Thompson and Chairman Farley all
made emphatic denial that such a sit
uation existed.
Much of Mr.. Campbell's argument
was devoted to explaining the own
ers' plan. under which the govern
ment would assume all the losses for
a period of years. and the operators.
after payment of certain expenses.
would devote the net profits to a fund
for the ultimate purchase of the
ships.
The present losses, amounting to
approximately $4,000. 900 annually, he
said, would be materially reduced
through private operation. and the
government advances to the owners
under the plan would be less than
under government operation.
Would Share Losses.
Charles H. Potter of the Potter
Steamship Line presented a plan
providing that the operating agents
of Shipping Board vessels share both
losses and profits with the govern
ment, and in the same proportion In
addition, managing operators would
receive a monthly outstanding fee
plus a standard operating figure to
be paid by the government on the
period to be agreed upon. If there
were no losses. only the outstanding
fee would be paid.
Speaking for the operators, Mr..
Potter also urged revision of the
Shipping Boards contemplated route
consolidation. Chairman Farley asked
the owners and operators to get to-
gether on concrete plan" to submit
to the board later.
the owners he represented were mot
welded to their plan," but were pre-
pared to accept any plan that would
accomplish the operation of an Ameri-
can merchant marine under private
ownership.