Evening star., 1925-06-12
The Sales of Old Ships.

Operating and selling ships consti-
tute a big and intricate business.
The Government is engaged in both
time to provide for a permanent
American merchant marine, carrying
! American commerce to all parts of
the world and existing as an impor-
tant factor in the national defense.
President Coolidge has insisted prac-
tically since he entered the White
House that these were business ac-
tivities, which could be handled to
greater advantage by a single di-
recting head rather than by a BIZ
partisan organization, the Shipping
Board. He has sought continuously
to have the board turn these busi-
ness functions over to former Admiral
Leigh c. Palmer, the president
of the Fleet Corporation. His latest
move in the matter is a request of
the board that in the future all
sales of ships and lines now owned
by the Government be negotiated by
ing to the board. however, the right
to pass finally upon any proposed
sale.
Gradually, and to all intents and
purposes 1t appears, the President
is accomplishing without legislation
the transfer of the operation and dis
posal of the Government fleet from
the board to the Fleet Corporation.
An administration measure, propos-
ing the complete enforcement by law
Of the board and the Fleet Corpora
ton, leaving to the latter the regu-
latory and advisory functions for
which 1t was originally created, was
introduced at the last Congress, and
it is expected will be introduced and
passed at the next session.
The difficulty of transacting busi-
ness in businesslike manner through
a board of seven men who are di-
vided in their views both politically
and economically is apparent. In the
matter of ship sales this has
been particularly striking in recent
months. There was the case of
the sale of the ships operated out
of San Francisco to Far Eastern
ports. which finally were awarded to
the Dollar Steamship Co. 1t was
evident from statements made by
some members of the board that they
were opposed to the sale of the
ships to either of the bidders, pre-
ferring to have the Government re-
tain them. With part of the board
seeking to transfer the ships as
quickly as possible to private own
ership. with the well understood pro-
viso that they shall continue to be
operated under the American flag,
and some of the members pulling
back, the prospects of placing the
ships in private hands might, well
seem dim. There was a PROPOSED
transfer to private corporations of
cargo vessels operated in the North
Atlantic recently, over which the
board split, too, and the matter fell
through.
Whatever agency handles the sales
of the Government ships should bear
in mind the vital need of a perma-
nent overseas American merchant
marine. The guarantees given by
purchasers that the vessels shall
continue to be operated under the
American flag should be as COM
plete as possible. There Is a. limit
to the life of a ship. Some day it
will be necessary to replace those
now operated by the Government or
sold to private operation under the
American flag. 1t is imperative that
the matter of requirements be con-
sidered thoroughly in all sales and
that the Government itself give care
full thought and study to this fea-
ture of the merchant marine problem.
Admiral Palmer has given evidence
of his devotion to the cause of an
American merchant marine, a per-
manent merchant marine, and the
President has acted wisely in Sc
lecting him to deal with the transfer
of the ships to private hands on
terms that look to continued opera
ton under the Stars and Stripes.