Evening star., 1923-08-18
Must Decide at Once on Fate
of Procedure Favored
by Mr.. Harding.
TREADS CAUTIOUSLY TO
LEARN DETAILS FULLY
Complicated Issue Perplexes Presi.
dent-Rumored Change Held
Unfounded.
By DAVID LAWRENCE

president Coolidge has come face
to face with his first major problem
shipping policy-and he cannot
wait for Congress to convene. but
must make up his mind at once
whether the policy approved by the
iate president Harding shall be con-
tlhued or amended. He must act at
once
Inc PRESIDENT thus far has given
the impression of a man who doesn't
kho" what it's all about, but who
wants to tread cautiously and famiI-
larize himself first with the whole
matter. Unfortunately, shipping is
such complicated affair that a few
conferences with Chairman Farley
and the members of the Shining
Board will hardly give the Presi-
dent anything but surface thoughts.
IN the end he will have to
take the judgment Of the SHINING
Board or see the whole thing disintr,
crate. Mr.. Harding spent more time
on the shipping question than anv-
thlng else. Scarcely d day went bv
that he didn't work on it. Chairman
Farley came into office with a dis
IIhct understanding that President
harding would follow a given policy.
MT. Coolidge is al liberty to change
H. and there are rumors that he
wants 10 do so, but the truth is the
president doesn't know enough about
II 10 nave such d rumor circulated
When he gets down to the bottom OF
u ne VIII approve what has been laid
Congress would never sanction the
present method of operating govern
ment ships If il ever got al the facts.
Inc new policy which Mr.. Harding
"aS ABOUT 10 put into effect is more
IN line with congressional sentiment
than any plan that has yet been pro
posed. And, after all, the Shipping
board Is not an executive depart
inent, but an Independent establish
ment responsible to Congress
Proposes New Form,
W nat Mr. Farley IS proposing to the
president is that the Shipping Board
shall turn from one form of govern
ment operation 10 another The gov
ernment has always operated ships
ever since the war But the actual
work was done and is being done still
Ds agents known as managing op-
orators" They have established lines
and companies. The government pays
these managing operators a commits
SION on gross revenue. 1t doesn't
mater whether line is making
money or not. The commission must
oe paid just the same. AS matter
of fact most of the lines have been
losing money and the government has
been meeting the losses. The com
panles organized by these managing
operators are owned by them-al the
good viii and contracts for facilities
are the property of the private op-
orators. The government heretofore
has simply depended upon the agents
for operation.
All this was to be changed by Presi-
a lI1 n I;,orr Ty~1I,
of the subsidy bill He sensed the
opinion OF Congress TO be that pub
{ funds could not be uSe:l to enrich
private individuals. If subsidy wasn't
10 be granted, then commission
would be equally disapprOvtd. Prepa-
rationS were made to have the Ameri-
can government enter into direct
operation hiring personn-l not on a
commission basis. but on salaries. The
lines were to be grouped into from
twelve to eighteen corporations which
the government was to own in en-
tirety. Naturally the agents who now
have the commission system with
out any of the risk of losses do not
want the plan discontinued Some of
them are said to be indulginE in Cr-
forts to influence the Presi lent 20
maintain the present system. If he
does, Congress will probably go into
the controversy and refuse 20 appro-
pirate on that basis.
Coolidge Has Worries.
So Mr.. Coolidge is up against
tangle that will give him enough n
worry about for a year or more UNI
less he gives the present Shippini
Board the authority to go ahead al
Mr.. Harding did. The board adopted
its policy after a conference with
President Harding and over the op-
position of many private interests
following struggle of many months
in which all sorts of efforts were
made to influence Mr.. Harding to
turn over the ships to private inter-
ests. He finally came to the con-
cluSion that direct government op-
Grafton was the only way to safe
guard expenditures of the taxpayers
money and that If the government
ever was to have a shipping system
to sell to private interests IL must be
in position to sell the whole thing
ships, facilities, good will and all the
elements of a complete organization.
Mr.. Coolidge's action is being mis-
taken for doubt. In the end he will
adopt the Harding policy.
Copyright. 1921