Evening star., 1925-10-06
Deposed Official Is Named as
Vice President of Corpora
tion to Take Charge of
European Operations.
REMOVAL VOTE is 40;
O'CONNOR DOES NOT ACT
New President Will Get $4,000
Salary, $1,000 Less Than Was
Paid Predecessor-Henry's Res
ignation as Finance Department
Head Is Accepted.
By the Associated Press.


By the Associated Press.
Leigh c. Palmer was removed today
as president Of the Emergency Fleet
Corporation and Elmer Crowley OF
Boston was named to succeed him.
The action was taken by the Ship
ping Board and marked another step
in the tangle in which this Govern
ment agency has been inmeshed in
recent months.
Mr.. Palmer's resignation had been
on file since he was made head of
the corporation. with wide powers. at
the instance of President Coolidge.
Today the board, which Cancelled these
powers several days ago. merely
voted to accept the resignation. 1t
then appointed MIR. Palmer as vice
president of the Fleet Corporation in
charge of European operations.
Other Changes Made.
Several other changes were made
In Fleet Corporation personnel. Sid
ney Henry, vice president and trustee,
in charge of finance, was removed by
acceptance of his resignation through
unanimous vote of the five commits
sioners present. G. K. Nicols, first
assistant to the vice president in
charge of operations, was elected to
succeed Mr.. Henry as trustee, leaving
the vice presidency open.
j. E. Sheedy was relieved of duty
in London as vice president in charge
of European affairs. and was directed
to report to the board. which, 1t Is
expected, will assign him to other
duties. ..s-,-
Mr.. Crowley is described a. a prae,
tical shipping man, and previously
he was employed under Mr.. Palmer
as assistant to the director Of opera
tions.
The vote by which Mr.. Palmer was
removed was to 0. Those for the mo-
ton were Commissioners Benson,
Haney, Plummer and Thompson.
Chairman O'Connor, the only other
commissioner present. did not vote.
Loses $1,000 in Salary.
Mr. Palmer, as vice president, would
have a salary of $4,000 a year, as
compared with $25 900 now but a COM
mittee consisting of Chairman O'Con-
nor, Vice Chairman Plummer and
Commissioner Benson, was appointed
to revise salaries of executives of the
Fleet Corporation. The salary Of Mr..
Crowley was fixed at $4,000.
Crowley has accepted his appoint
ment IS president of the Fleet Cor
poration and is expected to resign his
duties as operating manager for the
American Export Line in New York.
He began going to sea at the age of
Is and has been master of steam and
sailing vessels, one of them the
Thomas w. Lawson. the only sever
nasted sailing vessel ever built in
this country.
Mr.. Palmer declined to say what
his position would be toward accept
ing the vice presidency.
His disagreement with President
Coolidge over methods for disposing
of the Governments merchant ships
was further emphasized in a state
ment yesterday by Commissioner
Thompson, who has resigned, protest
ing against the proposal to abolish
the board or do away with regional
representation in it's membership.
Says Action Necessary.
The boards action last week in
resuming full control Of the Fleet
Corporation, he asserted, was neces-
sary Ito correct the chaos and NAL
administration resulting from it's
previous compliance with President
Coolidge's insistence that Mr.. Palmer
''be given powers the Congress ex-
clusively lodged III the Shipping
Board" The members, he said,
either had to take sharp issue with
the President or ignore their obliga-
tions under their oath of Office
Declaring the board was IAN inde-
pendent branch of government, not
an executive branch" Mr.. Thompson,
in his statement, scid
The stock ~ the Fleet Corporation
is vested by law in the members of
the Shipping Board. The officials of
the Fleet Corporation are elected by
and responsible to the Shipping Board.
In any neglect of duty or malefeasance
of any official of the Fleet Corpora
tion It Is chargeable to the board, not
the Fleet Corporation officers
The Constitution of the United
States specifically provides that the
Congress shall have power to dispose
of Government property. YET the
President insisted. in communica
tIon to the board, that members of the
board should not even discuss the sales
Of ships with prospective purchasers,
but that this function should remain
exclusively with Admiral Palmer.
Cites Disagreement Cause.
Thus denied. except in open con.
fict with the President, opportunity
70 learn all the facts in connection
with negotiation for the sale of pub.
lie property, the board, constituted by
law as the only authority capable
of giving bill Of sale to such prop.
erty, was criticized because 1t would
not agree to sell established ship
routes at figures determined by Ad-
miral Palmer.
Il neither wish to wrangle with
the Chief Executive nor violate my
oath of Office. 1 voted against the
sacrifice of public property. 1 re-
fused to vote for the sale of ship
routes at one-fifth of the world mar.
ket price for such property.
The prices recommended by Ad
miral Palmer at which ships would
be sold was a sacrifice. 1t consti
tuted a property or money subsidy
not authorized in the law, the policy
OF subsidy having been considered by
fhe Congress and re iect ed "