Evening star., 1923-12-09
Foreign Nations, With Guile and Subtlety,
Seek to Loosen u. S. Grip on Its Ships

ance given to the government organ
ization running the vessels that the
fleet Is to be permanent. and to ship
pers both in America and in foreign
nations that there will be American
bottoms in which to transport their
goods.
Second. there must be adopted
plan whereby the greatest efficiency
and economy in operation can be at
tanned.
The second need will find its an
swer largely in the giving Of def
mite assurance that the vessels are to
be run, Chairman Edward P. Farley
of the United States Shipping Board
has recently returned from Europe,
where he made personal observations
|of conditions affecting American ship
ping. He found that the uncertainty
Of continued operation-the lack Of a
definite plan-the fact that the mer-
chant fleet is kept on the auction
block from day to day-is initiating
against efficiency of operation. He
found that shippers who would be
glad to do business with the American
lines are fearful that II they turn
from the old lines to ship in Amer
lean vessels and the latter were with
drawn In a short time. they would
be left at the mercy Of the European
lines and that they might put the
screws to them.
Held Only Temporary Affair.
Incidentally our European compet-
itors are helping to create the feel
ing abroad that the American mer-
chant fleet is only a temporary affair.
likely to go out of business any day.
Such reports not only have their ef-
feet upon shippers. but also upon po-
tential travellers to the United States
particularly In Central Europe and
away from the coast. They fear that
even in the interval between the time
they buy their tickets and the date Of
sailing, the American ships may cease
to run.
Chairman Farley became so strong
ly impressed with the need of
definite understanding that the
American merchant fleet is to be
permanent that in all his public
statements and in all his conferences
abroad. he laid particular emphasis
on the fact the American flag Is in
the overseas trade to stay.
Plans of Mr.. Farley.
Mr.. Farley has a plan to bring
about more efficient and economical
operation OF the feet while 1t Is
owned by the government. 1t is not
Lasker-Farley plan-as it has been
| called-but a Farley plan 1t calls
for the establishment of subsidiary
corporations of the Emergency Fleet
Corporation, to take over and op
crate the vessels. These corpora
tions are to be formedeither under
state incorporation laws or under a
national act. The subsidiary corpo-
rations will turn over their bonds
or stock to the president of the
Emergency Fleet Corporation, who
will hold them as the agent of the
government and who will have direct
control of the policies and admins
tration Of the corporations. He him
self will be directly responsible to
the President of the United States.
The plan makes of him, in effect.
director of shipping.
The subsidiary corporations under
the Farley plan are to be operated
as any other commercial enterprise;
are to be taxable and suable. 1t is
expected that they will also have
all the benfits derived from the cor
porate method of doing business.
At present the governmen Mt owned
ships, exclusive of the United States
lCoutinued on SeVenteenth PageN