Evening star., 1925-01-12
COMMITTEE 0. KS
SHIP DIVORCE BILL
House Appropriations Body
Asks Early Passage
of Measure.

The House committee on appropria-
tions, in reporting the Independent
Offices appropriation bill, has gone on
record in favor of the early, passag ge
of the Lehlbach bill, at least so far
as it applies to separating the Emer-
gency Feet Corporation from the
Shipping Board, as proposed by Pres
ident Coolidge. A similar bill, Of
fered by Senator Jones of Washing
ton, has been introduced in the Sem
ate. ~
AS the proposed separation, which
includes turning over the ships and
other property by the board to the
Fleet Corporation, is a legislative
matter, the House committee did not
seek to include provision for it in
the appropriation bill. but said:
The committee believes that early
action of this character is desirable"
Testimony Is Cited.
The report of the committee subs
mftted to the House by Representative
viii r. Wood of Indiana, chairman
of the subcommittee which handled
the Independent offices appropriation
bill, after calling attention to. the
Lehlbach bill, says:
"One of the purposes of this bill
is to separate the Shipping Board and
the Emergency Fleet Corporation.
Your committee on January 2, 1925,
carefully considered this matter with
officials of the Shipping Board and
the president of the Fleet Corpora
ton"
The report gives extracts from the
testimony before the subcommittee
of Chairman O'Connor of the Ship
ping Board and Leigh c. Palmer,
president of the Fleet Corporation,
dealing with this matter. Mr.. OCon-
nor told the committee that he ia
Vored the proposed separation, as did
Mr. Palmer.
The testimony of Mr.. O'Connor was
as follows:
Mr.. O'Connor-When the Shipping
Board was created it was created
with the idea in mind that they were
not gong to operate ships, it was
never intended that they should
operate ships. I will say to you that
enforcement of the two possibly
would be a good thing.
Mr.. WOod-Yes; l don't think now that
the Shipping Board ought TO be
charged with the operation of ships
or have anything to do with the oper-
alton of ships. .-
Mr.. O'Connor-That is the way we
would like to have it. and follow up
the other work, and there is a lot
of 1T when we get at it
Mr.. Woodland then there would
not be any cause for divided re-
sponsibility or friction. l hope that
separation can be made.
Mr.. O'Connor-I do not think your
will find an objection from a mem
ber of the Shipping Board against a
enforcement. It would take a lot
of curse off us.
Palmer Testimony.
The extract from the testimony of
Mr.. Palmer contained in the report
was as follows: :
Mr.. Palmer-My feeling is that there
should be a definite separation by
law; that the Shipping Board should
carry out the function for which it
was originally designed, namely, reg
ulatory, semi-judiciah function in con-
nection with the merchant marine as
whole, both privately and publicly
owned along the general lines
that the Interstate Commerce Com
mission operates; and that the Fleet
Corporation should have charge of all
the physical properties of the Gov
ernment-owned part of the merchant
marine, and should be entirely re-
sponsible for their operation and
have the authority that should go
with the responsibility.
l think there should be no connec-
tion between the two organizations,
except such as corresponds to the
operation of the Interstate Commerce
Commission with reference to the
railroads.
The committee report comnends the
economies effected and reductions
made in operating expenses of the
Government-owned merchant marine
by the Fleet Corporation during the
fiscal year. = =. ~
The appropriations for the Shipping
Board and Emergency Fleet~Corpora
tion recommended by the committee
follow the estimates of the Budget
Bureau The Fleet Cooperation.
which is charged with the operation
of the fleet, receives $4,000, 900 for
expenses, plus all receipts from the
operation of the ships, and 100000
from the proceeds of sales pertaining
to liquidation to meet the expenses of
liquidation, including also the tie-up
of ships, etc. The appropriations for
the current fiscal year were $780,
100000 and $4,000, 900, instead of S24.-
100000 and s4,OOO,OO0, in the new bill.
The reduction will call for still fur
ther economies and Improvement in
operations during the next fiscal year.