Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-03

DESTROYS OF securing the full values to the Ma
marine by the merchant marine np act CT soon after
the inauguration Of the present administration, ]
ssting of the secretary of Commerce As Chairman.
the Secretary Of the Navy, the Postmaster General
and the chairman of the Shipping Board, to make
survey Of the policies being pursued under the act
of 1928 in respect Of mail contracts to inquire into
its workings and to advise the Postmaster General
in the administration Of the act.
Co-ordinated Policy.
In particular it seemed to me necessary to de-
termine If the result of the contracts already let
would assure the purpose expressed in the act "to
further develop an American merchant marine to
assure its permanence IN the transportation Of the
foreign trade of the United States, and for other
purposes" and to develop a co-ordinated policy by
which these purposes may be translated into ac-
Qualities.
In review of the mail contracts already awarded
1t was found that they aggregated rs separate
awards imposing a governmental obligation Of a
been imposed in five of the contracts for construc-
ton Of new vessels with which to replace and ex-
pand services. These requirements come to q total
Of ~ vessels in the 1Oyear period aggregatng 1872
600 tons. Some other conditions in the contracts
had not worked out satisfactorily,
That study has now been substantially completed
and the committee has advised the deSrability and
the necessity of securing much larger undertakings
as to service and new construction in future
tracts. The committee at this time Is recommend
ing the advertising of IA additional routes making
substantial requirements for the construction Of
vessels during the life of each contract recon-
mended. total of 40 new vessels will be required
under the contracts proposed, about half Of which
will be required to be built during the next
three years The capital cost Of this new construc
ton will be approximately $3.50 100000, involving
approximately 460 600 gross tons. Should bidders
be found who will make these undertakings 1t will
be necessary to recommend to Congress an increase
IN the autnorlzed expenditure by the Post Offce of
tageous to grant such an authority.
A conflict as to the administration of the act
has arisen in the contention OF persons who have
purchased Shipping Board vessels that they are en-
titled to mail contracts irrespective OF whether they
hand being required by to let contracts in that
manner. It Is urgent that Congress should clarity
this situation
The Banking System.
1t is desirable that Congress should consider the
revision of some portions Of the banking law
inu presants ann D OF ana % bank
naturally arises as to whether II allowed to expand
without restraint these methods would dangerously
concentrate control Of credit and whether they
would not in any event seriously threaten one of
the fundamentals Of the American credit system
which is that credit which is based upon banking
deposits should be controlled by persons within
those areas which furnish these deposits and thus
be subject to the restraints of local interest and
public opinion In those To some degree
however, this movement OF chain or group banking
is cropping for stronger support to the banks and
more secure basis for these institutions
The growth In size and stability Of the metro
politan banks Is in marked contrast to the trend
in the country districts, with its many failures and
the losses these failures have imposed upon the ag-
ricultural community.
Competing With State Banks.
The REIMBURSEMENT of charters of national banks
In great commercial centers favor of State char
ters indicates that some conditions surround the
national banks which render them unable to COM
pete with State banks and their withdrawal results
In weakening our national banking system.
It has been proposed that permission should be
granted to national banks to engage in branch
banking of a nature that would preserve within
limited regions the local responsibility and the con-
troll OF such credit Institutions
THESE subjects. careful
vestigatlon, and it might be found advantageous
to create joint commission embracing Members
OF the Congress and other appropriate Federal ON
Gals for subsequent report.
Electrical P0mer Regulation,
The Federal Power Commission is now COM
prised of three Cabinet officers and the duties in
volved in the competent conduct of the growing
sponsbilities of this commission far exceed the time
and attention which these officials properly af
ford from other important duties. recommend
that authority be given for the appointment Of full
time commissioners to replace them.
1t Is also desirable that the authority Of the
commission should be extended to certain phases
of power regulation. The nature of the electric
utilities industry is such that about 30 per cent of
ali power generation and distribution is intrastate
In character and most Of the Estates have developed
their own regulatory systems as to certificates of
convenience, rates, and profits of such utilities To
encToach upon their authorities and responsibilities
would be an encroachment upon the rights of
States There are cases, however. of Interstate
character beyond the Jurisdiction of the States To
meet these cases it would be most desirable If a
method could be worked out by which initial action
may be taken between the commissions of the
States whose joint action should be made effective
by the Federal Power Commission with a reserve to
act on Its own motion in case OF disagreement or
nonacton by the States.
The Radio Commission.
recommend the reorganization of the Radio
commission into permanent body from its present
temporary status. The requirement of the present
law that the commissioners shall be appointed from
specified bones should be abolished and a general
provision made for their equitable selection from
fhA mt nacp ia fHaan fFnwk
of the commissioners, the present method develops
public inSiStence that the commissioners are eSpe-
cialy charged with supervision of radio affaiEs in
the zone from which each Is appointed. AS result
there Is danger that the system will degenerate
from national system into five regional agencies
with varying practices varying policies competitive
tendencies and consequent failure to attain its ut
must capacity for service to the people a whole.
Muscle Shoals.
1t is most desirable that this question should be
olspoSeu OF. Under present conditions the income
from THESE plants Is less than could otherwise be
secured Tor It's use and more especially the public
Is not securing the fun benefits which could be
obtained from them.
1t Is my belief that such parts of these plants as
would be useful and the revenues from the re-
mander should be dedicated for all time to the
farmers OF the United States for investigation and
experimentation on a commercial scale in agricul-
turaI chemistry. BY such means advancing discov-
cries OF science can be systematically applied to
agricultural need and development of the chemical
INDUSTRY OF the Tennessee Valley can be assured
90 not favor the operation by the Govern
ment of either power or manufacturing business
except as an unavoidable by-product Of some other
major public purpose.
ANY form of settlement Of this question will
the lease OF the plants either as q whole or in
parts and the reservation OF facilities products
teebnca I0s ana sgrCHHTai PURPOSES Tne extremely
dealing with chemical and electrical enterprises