Evening star., 1925-09-23
Fleet Corporation Head Has
Cut Expenses Despite Ship
Board Opposition.
COSTS TO GOVERNMENT
REDUCED ID MILLIONS
More Vessels Placed in Private
Ownership and Business Put
on Healthier Basis.
BY G. GOULD LINCOLN.

In the controversy between the Ship
ping Board, on the one hand, and Pres
ident Coolidge and the Emergency
Fleet Corporation, on the other over
the operation and disposition of the
Government-owned merchant fleet,
emphasized in the recent demand of
the President for the resignation of
Commissioner B. f. Haney, the fol.
lowing facts stand out:
/. A tremendous reduction in the
cost to the Government of the oper-
alton OF the ships, since President
Coolidge came into office and appoint
ed Admiral Leigh c. Palmer president
Of the Fleet Corporation.
2. A great increase in the efficiency
of the Government-owned merchant
marine, due in large part to the econ
Omies instituted and the reduction in
the budget appropriation.
3. The Government ships in the fis-
cal year completed June 80 ast, with
an average of 299 vessels in opera
ton, as compared to an average of
33S in the previous fiscal year, car
ried as many payable tons Of freight
and obtained as much revenue as in
the previous year.
ment-owned ships and trade routes to
private American ownership and oper-
alton is rapidly becoming an accom-
plished fact.
Sequel in Congress.
The present controversy will find it's
sequel when Congress meets. and a
determined effort is made either to
amend the merchant marine act so as
to remove the board absolutely from
the field of operation Of the ships or
to abolish the Shipping Board entirely
as advocated by some members of
Congress.
President Coolidge recommended to
Congress at it's last session that the
law be amended so as to separate en-
tirely the Fleet Corporation from the
board, and Senator jones Of WASH
ington, chairman of the Senate COM
merce committee. prepared a bill for
this purpose. A similar bill was pre-
pared for consideration by the House.
Whether the President will go further
in his next message and urge the alb
clifton Of the board remains to be
seen. The President has indicated in
the past that the board has functions
to perform of a regulatory and in
Quisitorial nature, and that is should
conf1ne its activities to those func-
tons.
Lives Within Budget.
The great Improvement in the ship
ping situation indicated by these
facts Is due in large measure to the
determination of President Palmer of
| the Fleet Corporation to live within
the budget appropriation for the
ships and to the economies and more
efficient management instituted un.
der his regime.
During the fiscal year 1e23-24 the
Shipping Board and the Fleet Cor.
poration were operating under an
appropriation of $4,000. 900, divided
as follows: s42,00o,000 for ship op-
Grafton and IS 200, 900 for liquidation
Of inactive properties and upkeep of
the laid-up ships. That is the ap-
preparation which was in effect when
President Palmer was appointed by
the President in January. 1924. The
appropriation made for the next fiscal
year, 1924-25, was $36, 900 900, $780,
100000 for ship operation and
Sc, 900 900 for liquidation and upkeep
of the laid-up ships. For the next
fiscal year President Palmer has de-
clared that it will be possible to get
along with $1S,000,000 for the opera
tion of the fleet and 100000 for
liquidation and the laid-up vessels.
The Shipping Board. on the other
hand, is holding out for $22 100000
for operation. President Palmer in
sists the operation can be maintained
efficiently, without further reduction
of ships in operation, with the $751;
10000 appropriation.
Saving of 80 Per Cent.
Here is a cut, therefore, in op-
Grating costs of more than SO per
cent in two years proposed by Ad-
miral Palmer, with the assurance that
the services and the ships will be
maintained with increasing efficiency.
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