Evening star., 1926-12-06
SHIPPING BOARD
TO OUTLINE POLICY
Annual Report DiscIoses
Pans Er Keeping U. S.
Flag on Ocean.

The Shipping Board will make it's
Recommendation to Congress on a
policy FOR the future Of the American
merchant marine about the first of the
year, It was disclosed today, when the
/ board made public its annual report.
This agency Is going ahead with
it's plans to get the Government out
Of the shipping business, and is SELL
, Ing Federal-owned ships as fast as sat
isfactory deals can be made with pri-
vate concerns. thus eliminating a di-
rect source of loss to the American
people. but at the same time. it was
explained, 1t is making certain there
viii Be sufficient guarantee that the
American flag will be kept perma-
nently on the seas.
In this connection the board calls
attention to the need Of a replacement
program to keep an adequate number
OF vessels on the water, even after
they have passed into private hands
The report dropped a warning about
the decline in trade to South America,
due to keen foreign competition, and
lifted again the danger signal against
increasing international propaganda
to influence the United States to
abandon its protective coastwise sys-
tenn"
Must Protect System.
I'm the absence of some appropriate
form Of direct Government aid" the
report said. "the protection of the
coastwise system is peculiarly impor-
tant. The desire Of foreign vessels to
invade the coastwise trade of the
United States is being emphasized by
foreign operators and by foreign Off
cials and commercial bodies
An indication that Europeans were
not still clinging to the belief that
the American war-inspired merchant
| fleet was an "emergency" affair, as
! implied in the name, Emergency
Fleet Corporation" the boards oper-
ating subsidiary, was given in the re-
port. which declared West-bound
| loading from Europe increased dur.
| ing the year and on every hand
| by shippers and receivers of cargo of
| the good service rendered by our vari-
! GUS lines
Another reason assigned for the
falling off in South American trade
| was the fact that foreign competitors
were employing motor ships with
much greater speed than board YES.
sells. The board, however, is engaged
in an extensive conversion program
, involving the Dieselizing of many Of
| it's cargo ships and reported it hoped
to speed up this work in future by
experience gained in converting its
| first group.
Attention was re-directed to the fact
that the coastwise laws had not yet
been extended to the Philippines, al
though the board certified to the
President in 1922 and still holds that
adequate tonnage. is available for
service between the United States
and the islands, warranting applica-
ton of these protective laws to the
American possesson.
SThe board reduced the one.time kil.
lion-dollar fleet during the year by
$50 ships. four complete cargo and
two entire passenger lines being sold
with 1879 vessels going to Henry Ford
to be scrapped. The American-Pal-
metto line, a cargo service, was taken
back after sale when 1t was seen the
| guaranteed operation could not be
| maintained, and disposal of the Pan
American and American.Orient lines
left the board with only one complete
passenger service, the United States
Lines.
Attacks Foreign Pacts.
At the end of the year, SS1 vessels
remained to be disposed Of. Largely
through liquidation of the standing
fleet and savings from more efficient
operation. the board reported that the
loss Of SAL 900, 900 sustained by it in
1924 had been cut to 10000, 900 in the
last year.
The board renewed It's attack on
agreements between American trunk
line railroads and foreign shipping
services. presented a Recommendation
for a codification Of American naviga-
ton laws and said the replacement Of
the IL passenger vessels still in the
Government fleet will have to be ac-
complished within 16 years, which will
require the construction Of about
$4,000 gross tons Of passenger YES
sells each year.
This is in addition to the proposed
construction Of two passenger.cargo
vessels required to operate in con-
junction with the Leviathan in the
North Atlantic service. plans for
which have been prepared. Including
these two vessels. the board said. the
building program would involve the
construction of an average Of 10000
gross tons Of passenger vessels per
year during the period from 1928 on
ward"