Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-19
TRANSFER Of SHIP
CONTROL |SASKED
Bill Places U. S. Merchant.
men Under Emergency
Fleet Corporation.

Operation of the government owned
merchant fleet would be transferred
by law from the Shipping Board to
the Emergency Fleet Corporation, I'M
der, the terms of a bill introduced to-
day by Senator Edge of New Jersey.
The bill was referred TO the commit
tee on commerce.
Senator Edge undertakes to do by
law what President Coolidge several
weeks ago sought to accomplish
through "a resolution adopted by the
Shipping Board. In statement is
sued by Senator Edge today, he said:
"A corporation with one man exeeu-
tive responsibility is the ordinary agency
for the conduct of business enterprises
While the Shipping Board; under exist
ing authority of law, has turned the
operation of its vessels over to the Fleet
Sorporatiers, the Shipping Board by rea-
tees ofrthe corporation, its power to ap-
point and remove the officers of the
Fleet Corporation, its control of it's ap-
preparations and other moneys and its
assistance upon direct and detailed par
ticipation in the conduct of the activi-
ties of the corporation, prevents a bust
fairs. Some of the resulting evils could
be remedied without the necessity for
legislation, but the board, under its res
olution of January 10. 1924. has failed
to afford any of the possible remedies.
Agencies Separated.
The proposed bill, therefore, sepa-
rates the Fleet Corporation from the
control OF the Shipping Board. places
the stock of the corporation in the
hands OF the President of the United
States, gives the President of the
United States the power to appoint
the board of trustees and then gives
the president of the Fleet Corpora
ton full and unhampered control over
its operations.
The Fleet Corporation thus be-
comes directly responsible 10 the
President of the United States instead
of to the Shipping Board. The yes
sells, docks. piers and housing and
other properties of the board are
transferred to the Fleet Corporation.
THE fleet corporation is, under the
restrictions provided by existing law,
to maintain and dispose of such prop
critics. All sales Of property are, how
ever, to be subject to the approval of
the President of the United States
The fleet corporation is given control
of the marine insurance fund and the
construction loan fund.
For the purpose of operating the
merchant marine in smaller units, in
teresting local communities in the
various government lines, and. in gen.
eraI to facilitate the operation of the
fleet under more economical condi-
tions, the fleet corporation is author
lied to avail itself of subsidiary cor
porations. -
Such subsidiary corporations may
be employed to operate whatever
lines the fleet corporations may select.
The corporation may dispose of
shares in the subsidiary corporations
at fair value, but in no case is the
fleet corporation to become a majority
stakeholder in any subsidiary.
Ship Board to Continue.
THE Shipping Board is continued
in existence. as. a. body with regula,
tory and judicial functions only, bear.
ing somewhat the same relation to
water commerce as the Interstate
Commerce Commission does to rail
commerce
1.-The Department Of Commerce is
now the existing agency of the gov
eminent which has general authority
to investigate and develop foreign
markets for the United States. The
Department of Commerce prior to the
shipping act in 1916 was also an
agency of the government that super
vised vessel navigation. The pro-
posed bill. therefore. transfers to the
Department of Commerce the powers
granted by the shipping act in re-
spect of the investigation at home
and abroad of the cost of vessel OPP
Grafton from marine insurance. and
trade and terminal facilities, the codi-
fcation Of the navigation laws, and the
entertainment of discrimination by
foreign governments"