Evening star., 1924-03-09
US. SHIPPING SERVICE
ECONOMIES ADOPTED
Sailings Between Canadian Ports
and Scandinavia Eliminated
by u. s. Fleet.
FOUR CRAFT WITHDRAWN
One Managing Agent Takes the
Place of Three.

The first consolidation of existing
government freight services main
tanned through managing operators
was sent yesterday by Leigh c.
Palmer. president of the fleet corpor-
alton. to the Shipping Board for its
approval.
The proposed consolidation and re-
duction Of ships affects the freight
services between North Atlantic ports
of the United States and the ports of
the Scandinavian and Baltic region.
1t involves the elimination of sail
ings between the Canadian ports and
Scandinavia. 1t permits the with
drawal from the service of the four
least efficient vessels, and 1t places
the combined services-now operated
through three managing agents-in
the hands of a single managing agent
Economies resulting from the pro-
posed consolidation and reduction OF
ships are estimated by the fleet cor
poration to be close to half million
dollars a year.
This is only the first of number
of such consultations of freight serv-
the fleet corporation to the Shipping
Board within the next few months.
They are designed to bring about
greater business efficiency and to
the operation of the government
merchant fleet submitted to Congress
by the bureau of the budget. The
Shipping Board last year adopted the
principle of consolidating freight
routes, as such consultations would
result in better business and greater
economy.
Conferences Held
Before submitting his recommend
ations for the consolidation of the
North tlantic-Scandinavian freight
to wh ihe Se director M ef se
budget, who urged the national
necessity for keeping within the ap-
preparation recommended. He also
had conference with the Secretary
of the Treasury on the general sub
ject of consultations from the stand
point of good business methods.
Explaining the need of consolida-
tions of the freight services, Mr..
Palmer said yesterday afternoon:
consultations of existing freight
services, the first of which was rec
commended to the Shipping Board to-
day, means further advance toward
firm basis. By placing each service
between domestic and foreign
range of ports under a single control,
the one agent charged with the de-
route his ships more fexibly and to
avoid conflict with those of any other
operator.
1.-TWO outstanding reasons for the
proposed consultations are better
and more prudent business methods,
and the necessity for making the
best use of the smaller rumber of
ships that the reduced appropriations
permit us to operate.
Under the present appropriation
about $25.0O0,000 is available to make
up the losses in the operation of our
cargo vessels. With the greatly reduced
appropriation for the coming fiscal year
there will be available approximately
$le,000,O0O less for this purpose. 1t is
evident that only through the adoption
OF better business methods and the
strlctest economy can such a cut be
met and at the same time reasonable
services to American shippers and i'm
porterS be maintained.
Operating Costs Unaffected.
'There has been no reduction in the
operating costs. nor sufficient increase
In freight rates to permit operation on
the present scale within the reduced
budget figure. The savings must,
therefore, be effected by reorganization
of the services and also by reductions
in personnel that will not interfere with
efficiency, and by other economies.
There appears to be a widespread
feeling that the losses today due to the
private organizations are much toe
great. The feeling exists that the gen.
eral methods of operation do not rep
resent as efficient handling and as much
attention to business principles as is
desired by people of the country who
must pay the costs.
WET the people are demanding that
we have merchant marine strong
enough to carry a fair share of our
commerce, to protect our shippers and
importers from exorbitant rates, and to
provide a most valuable arm Of our ma
tional defense. They are demanding
also, however, that this shall be done
with reasonable attention to business
principles and economy.
Possibility of Sale.
THE Fleet Corporation is convinced
that the proposed consultations will
not only be Of great assistance in keep
ing within the appropriations made By
Congress for the next fiscal year, but
will also SO far reduce the operating
losses now suffered by its ships that
the possibility of their sale will be ma
terially improved.
''The best prospect for our merchant
marine is not in continued divided ef-
Tort. 1t is in reasonable concentration
OF effort, but in recommending to the
board any such concentration the Fleet
Corporation will carefully guard the in
terests OF each community to see that
they are adequately served.
THE reduction in the number of
ships operating, as well as the reduc-
tion in the number of operators, may
be expected to be unwelcome to some
OF the operators who have sailed them
under MO-4 agreement and this is only
human. However, every million dollars
that can be taken off the annual appro-
priation made for the operation Of the
ships lifting the burden from the tax
payers, should make additional friends
Tor the American merchant marine"