Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-25

The report made by Controller Gen
eral McCarl which criticizes the imam.
ciai transactions through which the
Government disposed Of ships in its
merchant fleet seems to meet with edi-
torial appreciation. Credit - declared
to have been extended beyond the limits
drawn by good business, and there Is
some criticism covering the whole period
Of Federal ownership.
The Controller General is quoted by
the Milwaukee Journal as saying that
the affairs Of the United States Ship
ping Board Merchant Fleet Corporation
demonstrate the futility Of conducting
public business through the medium OF
Q Si-public organization whose trans
actions are not subject TO the close
scrutiny OF Q regular Government au-
dit" The Journal agrees, but points
out that there is more TO 1t than THU"
America Is embarked at the present time
under the Jones-White act. II con-
merchant marine through direct loans
and mail contracts that amount to sub
sidy. We are ones more In position
where we are to pay out great sums to
shipping. Unless this question OF past
dereiictions is gone into thoroughly and
responsibility fixed, there Is likely TO be
a future laxity that will cost us millions
more. We cannot safely go ahead until
We bring TO light fully what has been
done"
Members Of the Shipping Board are
described as taking the MecaTl charges
lightly" says the Columbus Ohio State
Journal, zone member saying that the
same conditions had been gone over
before. The facts are not disputed, but
1t is explained that the Controller
General has not takIsn all Of the eco
nomic conditions into account. The
fact remains that President Hoover was
prompt to instruct Attorney General
Mitchell to study the report carefully.
There IS no charge Of NAL
feasance, as the President said, but
there Is an opportunity to learn the
lesson so that there will be no repetition
of the present circumstances II some
future emergency arises"
THE thing which attracted the atten-
ton of Congress more than anything
else in the report" according to the
Portsmouth (Ohio) Daily Times, was
Mr.. McCarls statement that one such
ship sale was made for S325 600, and
that after the sale q mail-carrying con-
tract was awarded to the new owners
of the ship sold for 10 years at such
come of $350,000 to $4,000 and the
new owners paid In cash only $4,000
giving notes for the balance. The fellows
who bought that ship certainly stood no
chance of losing on the trade. Why
the Shipping Board could not have Sc
cured these mail-carrying contracts for
ships In its service Is not stated by Mr..
McCarl or by any one else. Incidentally
32l of these vessels were sold to private
owners. They cost to build $40S, 062,-
600. They brought In the sale little
80
around $43, 900, 000-but SO far only $751;
soc, 900 of that has been actually paid
in"
mfr. McCarl shows" as viewed by
the Newark Evening News, that Of out
standing accounts receivable the Fleet
Corporation finds 1t necessary to set
up as q reserve against probably I'M
collectable accounts so per cent Of the
total due. His figures are merely items
in the detailed indictment once more
ohicially made against the Governments
attempt to operate an essentially pri-
vate business as a public activity.
The Shipping Boards activi-
ties were doomed to be costly failures
from the start, and will continue
such to the end, II the end is ever to
come. The Controller General recon-
mends this department be brought I'M
der the general auditing authority Of
the central Government Surprise is
occasioned to those who did not know
1t wasn't so controlled. How
can there be governmental efficiency
without a check on expenditures"
"At the close Of the war;" recalls the
New York Evening World, I'VE had
many ships. Those in our possession
did not help the subSidiSation cause,
and there was clamor against Gov
ernment-owned ships from those who
want to suhsidiZe heavily private ship
owners out Of the public Treasury
It appears that In the anxiety
10 get rid Of the ships quickly some