Evening star., 1925-09-01

Continued from First PageD
! were made perm :ssible through in
| creased efficiency and that layoffs on
! the Oregon-Oriental line were only
sea sonal.
Palmer Acted Independently"
| The commissioner has contended,
! also that many of the duties given by
law To the board have been delegated
| to Ar. Palmer and that he has acted
/ independently of the board al
though he was by his appointme mt
! created the boards agent.
! The President only last week made
! II clear al Swampscott that. as far az
he was concerned. Mr.. Palmer. and
| not Chairman O'Connor OF the Ship
ping Board. was running the Fleet
| Corporation. His position was dis.
closed after differences over budget
matters had developed between the
\ two officials, but this was followed to-
| day with the informa tion that he wa
| not contemplating at this time re-
questing the resignation of any other
Shipping Board commissioners.
In his telegram to Mr.. Haney last
Thursday. MIR. Coolidge said:
| 1t having come to my attention
| that you are proposing TO remove Ad.
miral Palmer, contrary TO the under.
standing | had with you when | rea D.
pointed you. your resigna ton from the
United States shipping Board is re.
| quested."
Calls Palmer Unht.
Replying In a letter the next day.
Mr.. Haney said he had told the Presi-
| dent during long converse ton at the
| White House before reappointment
was rendered HIM that he considered
Mr.. Palmer untitled for his position
that 10 act otherwise than he had as a
commissioner would have been a viola
tion of the trust imposed in him un-
der the merchant marine act. md that
when he accepted reappointment
there certainly was no express un.
dersta nding concerning the continu-
| ance in office or removal OF President
Palmer
The telegra m Of the President was
sent after MIR. HaneN at several re
cent executive meetings of the boa rd
had moved the removal of Mr..
Palmer, only to find no support for
| the motion. The oregon commissioner
holds that since Mr.. Palmer took Office
less than two years ago by appoint
ment of Mr.. Coolidge the Government
merchant feet has deteriorated in
numbers and in service. 3s6 ships hav-
ing been in operation under the cor.
poration at that time, whereas the
latest reports place the number AZ
251.
In addition. Mr.. Haney contends
that MIR. Palmer reduced the number
OF ships operating out of Portland on
the Oregon.Oriental line to the Far
East and contemplated still further
reduction in that service. while he
ira nsferred the ma ior activities OF the
Portland Office of the Fleet Corpora
tion without consulting him.
Palmer Defends Efficiency Moves.
Although Mr.. Palmer declined to
comment today. he has said recently
that while the Government fleet has
been reduced in number, this was due
to increased efficiency, or 10 custom
airy seasonal lay.offs, and that the
amount of cargo and the revenue re.
turn from it had been maintain un.
diminished. AS for the Oregon -Orien-
tai line, he has insisted that he did
| not and would not contemplate sbol-
ishing it or removing it. while the
lay-offs effected would be only sea
sonal
The sittlat ton involving the ship.
ping Board and the Corpora ton il re.
garded in some quarters here as the
outgrowth of q division Of authority
with duplication of functions in their
| practical opera ton. The entire cues.
ton Is expected TO come UP for exten.
sive consideration by Congress this
Winter.
At. the repeated suggestion of Mr..
| Coolidge, the board. which under the
! law may not divest itself of any au.
| Hhority. has delegated administrative
powers to the Fleet Corporation as i'll
n ~ .w4F q.
| judicial, policy orsanizatio All acts
of Mr.. Palmer as president OF the
Fleet Corporation, however. are sub.
! ject to the approval Of the board md
| in many Instances of sales and ad.
ministrative policies IL has rejected
! his recomme ndations.
Fight Over Budget.
Only recently Mr.. Palmer urged a
! budget for the corporation for the
| fiscal year 1927 of $4,000. 900 as com
! pared with $24,000,0 900 for the current
year. but the board increased it to
&22 .00o, 900 in the face of warnine
| Of the Budget Bureau that il should
! be held to SIS 900 900. When Chair.
man OCOnnor said such a reduction
| might mean the elimination of the
Leviathan from operation in the
! transatlantic trade. MIR. Palmer re
piled that no reduction in ship serv
| ice would he necessary The budget
was finally fixed at SIS 900. 900.
In his letter to Mr.. Coolidge. Mr.
| Haney recalled that he had been re.
luctant to accept reappointment not
| only for personal business rea asons
! but because he was not in sympa thy
with retaining Mr.. Palmer.
AT your request" he wrote "ths
rea sons for my opposition to President
Palmer were fully and frankly stated
and were in substance as follows
First. without questioning his ability
as naval officer. considered him in
competent from temperament and lack
OF experience to discharge the duties
| imposed by the merchant marine act
! of 1920 upon the Shipping Board
! whose agent he was; second. because
he seemed determined not to confer
with the board upon any of the ques
tions which came within its peculia
province under the statute. which in
| volved the boards direction, and could
not be delegated to the president OF
the Fleet Corpora ton: and, third. be
cause he seemed disposed to proceed
along lines independent of board &C
| ton, although he was by his appoint
| ment created the boards agent. This
course, in my view, was in some in.
stances violation of the. statute, OF
not in accordance with the legisla tive
intent as expressed IN thsestatute.
! Denies Misunderstanding"
Upon Your Invitation.yI II sta ted !, a
! length my views orIe-these subjects
without equivoca ton on. evasion There
icertainlv was no express zundersta nd: