Evening star., 1925-06-11
Coolidge Suggests Shift of
Authority to Fleet
Corporation.
ACTION is EXPECTED
ON O'CONNOR'S RETURN
Presidents Move Prompted by Diff
ferences That Have Split
Board Membership.
By the Associated Press

BY the Associated Press.
President Coolidge has suggested to
the Shipping Board that II delegate
completely to the Fleet Corporation
the authority for negotiating sales of
ships and lines, reserving to itself final
approval or rejection of the contracts.
While no action has been taken by
the board, indications are that the
suggestion will be approved when
Chairman O'Connor returns next week
from trip to Florida.
The suggestion was embodied in
letter written June to the board
through Chairman O'Connor. The
Fleet Corporation now has authority
to negotiate sales OF individual ships
and even to initiate steps looking TO
sales of lines. Negotiations for the
sale of lines. however, are for the
most part conducted by the ship sales
committee of the board, headed by
Commissioner Lissner. Whatever sales
are arranged through either the Fleet
Corporation or the ship sales commit
tee are required to go to the board
for final approval.
The board has been sharply divided
In considering many sales, the most
recent case being on June S. the day
the President wrote his letter. when 1t
rejected proposals for the sale of
freight ships and lines in the North
Atlantic. In that case one plan was
recommended by the Fleet Corpora
ton and another by the ship sales COM
mite of the board. The board was
against both proposals.
In his letter President Coolidge said
he was greatly impressed with the
great difficulties" in the negotiation OF
sales contracts.
II have the strong feeling" he add
ed. that such complex negotiations
cannot be competently carried out by
the often independent discussions by
buyers with the several members or
the Shipping Board. Furthermore.
there is an unwillingness on the part
of some OF our shipping men to enter
such an involved scene OF nesotia-
tions.
I'm order that we should make
vigorous attempt to carry out the pur-
pose of the merchant marine act-that
Is, the disposal of the merchant marine
into private hands-on equitable
terms, 1t seems to me vital that these
negotiations should be placed In one
single hand, reserving to the Shipping
Board the final voice In the acceptance
or rejection of the specific contract
"I would like to suggest to the board
that all NEGOTIATIONS of every cnarac-
ter for the disposal Of ships or hines
should rest in the handS OF AulntIai
Palmer tpresident of the Fleet Corpo.
tion): that the members OF the poaro
should refuse to see or discuss tnese
questions with any. individual during
the course OF such negotiations: that
Admiral Palmer should be authorized
to sign such contracts subject TO the
approval of the board. The board Will
then be in a position to exercise its
proper function in the acceptance or
rejection of the contracts.
"I am convinced that better terms
will he secured for the Government
and more progress made in carrying
ont the intent of the act than can Dc
accomplished under the present OASIS
of organization. -
IF the board delegates its authority
as suggested before the end OF the
month, 1t is expected that the sale
of 200 ships already authorized lor
scrapping will be conducted by tne
Fleet Corporation. This sale is ex-
nected to bring into the market Henry
Ford. Chairman O'Connor. on ms
own initiative. recently visited MT.
Ford and discussed not only the posi-
hiiity OF sale of ships for scrappins
hut for operation. Under the change
Suggested such activities by individual
board members would no longer be
possible.