Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-20
PRESIDENT FAVORS
TRADE SHIP SALE
Merchant Marine Building
Program FroWned on in
View of Losses. .
BY j. RUSSELL YOUNG.
Staff COrresnondent Of The Star.

STATE GAME LODGE, :. Oak.
August 20.-President Coolidge Is not
in favor OF having the Government
embark on another ship-huilding pro.
gram for it's merchant marine.
He appears very determined in this
respect, and while he was discussing
the subject yesterday afternoon, there
was no installing his purpose 10 offer
strong opposition to any proposal look
ing to the spending of more public
money on the building of merchant
vessels.
President Coolidge is ambitious 20
keep the American flag in the COM
merce lanes of the seven seas and 10
provide a merchant fleet for com.
mercial purposes as well as for ma
tional defense. but he does not want
the Government to lose any more
money in this connection than is abso-
iutely necessary.
The President would be happy to
see the Government entirely rid of the
operation of merchant fleet. Through
out his administration he has openly
favored the sale of the Governments
owned ships to private enterprises that
the latter might operate them. He is of
that opinion today, probably stronger
than ever before, because of his desire
to put stop TO the steady loss of
public money in the Government
attempt to operate its fleet.
Despite his insistenCe that the entire
fleet be disposed of to private owner
ship as quickly as possible, he will
demand that sufficient guarantee is
given with each sale to private own
ers that the ships will be continued
in operation. In this connection the
President wants to see the established
trade routes cotinued, and he will
therefore agree to sales only under
conditions which would secure this.
Wants Merchant Marine.
The President has a high estimate
of the Importance of transportation
by sea, but he has always considered
the Governments operation of NOR
chant ships as one of the problems in
herited from the war. However. he
considers it of prime importance that
there should be merchant marine,
first, as an adequate means for ma
tional defense, and secondly, as q
means of providing adequate service
to American commerce..
Those who are understood to have
preached the subject of embarking on
another shipbuilding program have
been represented as using as an argu-
ment figures showing handsome
profit from the operating of the mer-
chant fleet last year. Without at
tempting to deny reports regarding
operation profits, the President was
represented yesterday as stating that
the Government fleet is being operated
at a loss. He added that all Of the
ships are losing money, if the capital
outlay for the fleet is taken into &C.
count when figuring operating costs
and revenues.
The President inferred that he has
reason to know that the reported
profits are on paper only. When he
stated that the capital outlay should
be taken into consideration in estimat-
ing costs, he had in mind the more
than $3,000,O00,000 the Governmet has
lost in its merchant marine revenue.
Many Vessels OH Hand.
Moreover, Mr.. Coolidge is not at
all enthusiastic over the proposition
to build more merchant ships when the
Government already has such a vast
number of vessels on hand, many of
them not even in use.
, Considering his positive attitude re-
garding the merchant policy of his
administration it is felt by those who
have discussed the subject with Mr..
Coolidge recently, that he will display
greater determination than ever be-
fore to effect sales and to bring about
private ownership and operation as
soon as possible.
1t Is understood that the President
Will treat this subject quite adequate
~ In his next message to Congress.
Since coming here on his vacation the
PRESIDENT is represented as having
given some little thought to this prob.
lem of the Government, and that he
has discussed it with Secretary of
Commerce Hoover and Matthew C..
Brush, international shipping expert
or New York, during their visit to the
Summer White House.
President Coolidge has not vet made
up his mind in the matter of authorize.
lions from Congress for additional YES.
sells for the Navy. He intimated to-
day while discussing the subject with
callers that some new cruisers and
submarines will be authorized, but he
cannot say at this time how many he
VIII ask for. Without making public
the amount included in the budget for
carrying on the work of building the
eight cruisers, the building of which
mas begun. the President was repre-
sented as favoring an appropriation
Tor the next year sufficient to carry
On the construction work of these ships
at what he described as "a reasonable
rate"