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

must maintain merchant marine,
more than-a month ago took steps to
bring about greater efficiency and
= economy in the operation of the gov
eminent fleet. At his direction the
Shipping Board passed Il resolution
turning over to the Emergency Fleet
Corporation the operation of the fleet.
Leigh c. Palmer was selected by the
President to head the fleet corpora
ton and to take charge of the rum
ming of the American merchant fleet.
This course taken by the President
was generally applauded. 1t now de-
wolves upon Congress to back up the
President in his insistance that the
American merchant fleet shall con-
tinue to operate and in his plan for
the operation OF the vessels by the
fleet corporation.
Less Money Needed.
In the first place, Congress is soon
20 handle the appropriations for the
Shipping Board and the Emergency
budget has recommended that about
s36,00o.000 be appropriated for the
fiscal year beginning next July 1. as
ent fiscal year.
In the second place, Senator Edge
Of New Jersey (republican) has pre-
pared ana introduced a bill designed
20 separate by law the Emergency
Fleet Corporation from the Shipping
Board, thus carrying to its logical
conclusion the plan advanced by the
President.
How is Congress going to treat the
government merchant marine?
Whatever may be said about the re-
fusal of Congress to provide govern
7nent aid for private American over
seas shipping, 1t must be admitted
that 1t has dealt generously with the
government-owned fleet in the past
when 1t came to appropriating money.
The friends OF the fleet believe that
Congress again will make available
funds necessary to continue the oper-
alton Of the fleet and give evidence
that 1t Is back Of the President in his
demand that the American merchant
marine be kept on the seas perma-
nently.
= There will be opposition. There
ere Americans who go so far as to say
that we should junk the fleet If il
must continue to operate at a loss;
who say that the British, for example,
are perfectly capable and willing to
carry our exports and imports for us,
and that they and other foreign ma
tions should have this carrying trade,
This Is just what the British say, too
The American overseas merchant ma
rine. as 1t stands today, Is facing the
strongest kind of opposition from
Americans who do not believe in gov
eminent operation; from Americans
who have financial interests in for
eign shipping, and from foreign COM
petitors for the carrying trade.
Government Must Take Loss.
Without government aid to over
seas shipping. If there Is to be an
american merchant marine, II must
ne operated under existing conditions
), of initial cost, maintenance and OPP
Grafton. by the government, and the
government must take the loss.
This does not mean, however, that
the government should take any big
ger loss than 1t has to. 1t is with
the problem of efficient and economi-
cal operation that the Emergency
Fleet Corporation, under the leader
ship Of Mr.. Palmer. is now struggling.
To begin with. the fleet corporation
must figure on running the govern
.nent ships In the coming year with
S14,000,000 less than It has this year.
Yet the losses on operation Of the ships
on the average is as high or higher
today than at any time in the past.
Each of the 3o0-odd ships on the av-
eraGe losses more than $4,000 each
voyage.
When the estimates for the coming
year were submitted it was the I'M
derstanding that there would be some
consultations Of the thirty-nine
routes now being operated The
Shipping Board for six months had
been considering this problem. The
fleet corporation is now tackling Il,
and assurances are given that a solu-
ton will be found. In fact, 1t must
be found.
Consolidation Means Protests.
But 1t may be expected that when
q consolidation plan Is worked out
there will be loud protests from Sec
lions of the coast affected There IS
no purpose to reduce the service now
given, but by consultations to make
it possible to operate the vessels with
more. nearly full cargocs. Protests
Of members OF Congress from the Sec
tions affected are looked for. The
working out of these consultations
and ALLEGATIONS Of the ships by the
leet corporation will be test, too,
As to the practicabiHty of the plan
directed by the President for the
operation of the merchant fleet.
Another problem which the feet
corporation is struggling with now is
a me 1cation of the much-criticized
NJ. O.; 1 contract-the contract with
the operators. by which the vessels
are now handled. Under this con-
tract the government agrees to pay a
commission on the business handled
and to pay all the losses-a kind of
cost plus plan Of operation.
The operators themselves may be ex-
pected to fight any change. particularly
if that change looks to their sharing In
the losses. But without some plan
whereby the operators will partici-
pate in any losses. 1t seems hopeless
to believe that greater efficiency will
be obtained through the present
method of operating the vessels
through these private operators. As
soon as the committee Of experts of
the Fleet Corporation has arrived at
its decision, however, there will be
strenuous efforts to modify this NJ.
o. 4 plan.
Two other avenues are open to the
fleet corporation in its campaign TO
reduce the losses of the government
In the operation of the ships to a
minimum. One Is to practice rigid