The Birmingham age-herald., 1923-06-11
lASKER URGES |8 MERCHANT l
 FLEET UNITS
Wants Subsidiary Corpora tions Created To Control Each One Of 18 Consoli- dated Routes
SAYS ULTIMATE END IS SALE TO PRIVATE OWNERS
Recommends Diesel Engines Be Installed In Number Of Reserve Ships, Which Would Increase Their Capacity

WASHINGTON, June 1o.-Creation of IS subsidiary corporations. each. to control one of the consolidated routes, was recommended to President Harding today by Albert D. Lasker, retiring chairman of the shipping board, as the basis of government operation Of the federal merchant marine in case the efforts to tram marine in case the efforts to trans finally fails. The government must assume complete control, Mir. Lasker declared, the system of operation agents having proven In his opinion q vicious one," resulting in the plac- ing of it's terminal facilities and the good will of its lines" in outside hands.
 "Government operation, however" Mir. Lasker continued in the letter to the President, which was drawn in the form of final report, "should always be with view to ultimate sale to private owners"
 Provide Parent Body.
 "In the event of the adoption of this plan," Mir. Lasker said, these corporations will have the fleet cor poration as the parent body control ing the general policies of it's sub- salaries and the responsibility for their operation resting in the separate entities. The subsidiary corporations will control the goodwill and term inal facilities of their respective routes, and will thus possess assets of steadily increasing value, the property Of the government.
 Tn this light, while, of course, the officers and most of the directors of the subsidiary corporations should be practical shipping men who devote all their time to the enterprise. there should be invited on the respective boards in each locality citizens of eminence who would thus give local interest to each undertaking. The IF to IS routes indicated will re- quire, to begin with, about 25O ships, replacing almost 400 ships now in these services. and these 250 ships will repi esent approximately 2,000, : 600 deadweight tons.
 After alloting these 250 bottoms for this service. we will still have on hand little more than 1900 sur plus steel ships. The first comprehen- sive survey to be made of the fleet is now practically completed, and it will undoubtedly prove that several hundred of these vessels, built for war purposes, are inoperable under peace conditions.
 Would Break Gp Gms..
 Until the disposal of this tonnage is settled. the worlds shipping in- dustry will be disturbed, and the worst effects of this disturbance will be felt by our own marine interests. We should, therefore, at once accept the inevitable and break up these units. Of the 900 to 1000 remain ing, I recommend that approximately 200. representing, approximately 1.75O.0 deadweight tons. be selected asa reserve to be employed in highly competitive routes if. and when, for eign owners actively oppose the ex- pansion of our marine activities. The ships required for the operation of the 12 to IS corporations mentioned, together with the reserve 1 have just indicated and supplemented by our coastwise carrying capacity of 3,700.- 900 deadweight tons already in ex- istence. would provide this country with an aggregate merchant marine of approximately 7,500.000 deadwieght tons, d nucleus for a balanced mer- chant marine, for service in peace and war. and would place 1t in the second position among the maritime powers Wants Diesel Engines.
 The report recommended that Die sel engines be installed in a number of the ships held in reserve. assert ing that these machines had been proven by exhaustive tests to be 70 per cent more economical than other forms of propulsion. As the ships are Diesel-equipped they would be dis tributed among the IS operating com panies with view to further devel- opment along this line.
 Indeed" MT. Lasker continued, with early completion of this pro- gram supremacy in the economic phy- sical operation of ocean freight car riers might well pass from foreign fleets to our own merchant marine. for we would then possess such su periority that our car ying trade would be firmly established before our example could be followed by others"
 The chairman numbered among the material results of his administra- ton: Settlement of claims aggregat- ing $200, 100000 for "12 cents on the dollar;" reduction of current deficit from $16.000.000 a month. and the development of commerce through operation of American ships"
 At the end of the fiscal year, he said, the board would have $125.O00,- O00 on deposit in the treasury against $4.000,000 when he took office. This sum was believed to be sufficient for the board construction financing, the report said, if it's use for that pur- pose was authorized by Congress.