Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-24


The way TO cut down expenses is
to cut down. Mr.. Palmer, after look
ing the situation over, determined
upon policy Of retrenchment. to be-
gin now-not after the appropria-
lions made by the government for the
fiscal year had been used up. The
first announcement to reach the pub
lie with regard to this policy was
that the salaries of the four vice
presidents OF the fleet corporation
had been reduced to $4,000 a year
each. Two Of the vice presidents had
been receiving $4,000 a year and two
$4,000. 1t is not the purpose Of the
Fleet Corporation administration to be
nfgsardly, but to compensate for
services adequately. 1t may be said,
however, there is 4 firm determination
not to be reckless in the expenditures
Of government funds.
Fixed Policy VIII Aid. E
II the shippers, both in this country
and abroad. can be made to realize
that the American merchant fleet
Is not q temporary organization,
here today and gone tomorrow, it
will go far toward bringing about an
increase in the business done by these
vessels. An announced policy that
the government will operate these
vessels and that 1t does not propose
to sell any of them for, soy, period
Of five years, might well go far to-
ward establishing belief In the per-
manancy of these American lines.
Business Will come with assurance of
permanency and with the perfection
OF the service required. The Ameri-
can ships are carrying cargoes at
rates as low, and in some cases lower,
than their competitors. That being
the case, there is every reason to
suppose that. once the shippers know
the lines are to continue permanently,
they will ship in American vessels as
readily as in any others. And the
greater the business done the smaller
the losses will be to the American
government. There are two lines
operated today which are making
money. They are the passenger YES
sells operating from the Pacific coast
to the orient. The day may well
come when others will be found on
the right side Of the ledger. In fact.
there Is reason to believe that the
slump in shipping has reached its
lowest depth. and that there will be
a revival OF the carrying trade. This
is the opinion OF those who are closely
watching the situation.
The private operators now handling
the government boats. except the
directly by the government, appar-
=, RaA IA e. No. 4, -
vessel to the government whenever
it requires repairs or reftting in
their opinion and to obtain from
the government another vessel to
take It's place. Such practice can
not help but make the operators care
less in maintaining the vessels in
good operating condition. Such a
practice also costs the government in
the nelghborhood Of $4,000 every
time vessel Is substituted for. one
that has been operating. More than
100 such substitutions were made in
the last year, and 1t does not require
a mathematical genius to determine
what loss this Is to the govern
ment. But this Is only one OF the
conditions that make the cost plan
now in use extremely costly to the
government.
Edge Bill Gets Support.
Senator Edges bill to make perma-
nent and absolute the separation of
the Fleet Corporation from the Ship
ping Board will receive strong sup
port in Congress, where It has been
recognized that the operation OF the
ships should be in the hands Of one
executive, carefully selected, and not
left to the Shipping Board, composed
OF seven members, each with his own
ideas and with vote equal in
power to that Of any OF his COL
leagues. On the other hand, there
Will be those in Congress who will
cation of the, ships to any one man.
There you have 1t. The Congress de-
mands efficiency and realizes 1t can
be obtained better through a respon-
sible executive, yet 1t hesitates to
confer upon that executive the neces-
gary power to handle the situation.
The Senate Is seeking still another
avenue to add business to the Ameri-
can merchant marine fleet. Efforts
are being made to amend the treaty
with Germany relating 10 commerce, ,
ETC., now pending before the foreign
committee, so that II shall
be the right of the United States to
discriminate in favor of American
ships in the matter Of tariff duties,
etc. II the treaty can be SO amended,
then efforts will be made also to
amend the treaties with other ma
lions. The administration, following
in the footsteps of the Wilson and
Harding administrations, has SO far
registered opposition to the plan for
in favor of American
ships. Congress, however, has sew
eral times taken affirmative action
favoring such discrimination in tariff
bills and in the merchant marine act
of 1920.
This Observation-Disclosures discrimi-
nation. as It is called by the British,
who denounce it-may or may not re-
suit IN improving the situation so far
as the. American overseas merchant
marine is concerned. But one thing
seems certain-the government Of
the United States must make 1t clear ,,
that 1t proposes to continue to operate
its vessels as long as 1t Is necessary
in order to keep them on the seas. And
of all kinds of so-calIed flag discrimina-
ton, government operation is the
most Objectionable. according to the
British. In fact, with the United