Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-17

SENATOR DUNG
OF Florida. who spoke last night ia III
honest action, in good faith, without
favoritiSm, is essential.
1t is true that during the first few
years after the enactment Of the mer-
chant marine act of 1920 too much
stress was laid upon the idea Of get
ting the Government out of the ship
ping business and sales were made
which resulted In q sacrifice OF public
property and public interest. This was
due to some extent to the conflict of
view as to policies that should be pur-
sued and to poor administration in at
tempting to carry out various policies.
The controller general recently con-
demned the Shipping Board and Fleet
Corporation for having failed in many
particulars to follow Government ac-
counting methods. but 1t is believed
such course would have made 1t ut
terly impossible for the Governments
shipping agencies to meet commercial
necessities. Most of the controller gen.
erals criticisms had to do with condi-
tons. admittedly bad. that existed in
previous years. It Is believed that most
of these conditions have been remedied
and will not recur, and certainly II the
Governments shipping agencies carry
out the clear object and purpose Of
Congress they will not subject them
selves to further criticism such as was
made by the controller general, par
ticularly with reference to transactions
involving the ruthless sacrifice Of Gov
eminent property.
Act Of May -, 1928.
It was partly to meet the situation
that developed and avoid the sacrifices
Of the ships and strengthen the policy
and purpose expressed in the act Of
1920 that Congress felt called upon to
pass the act OF 1928 The very first
section of that act reads as follows:
Sec. /. The policy and the primary
purpose declared in section OF the
merchant marine act, 1920 GU. s. c.,
Title 46, Paragraph 86l), are hereby
confirmed"
This act requires the affirmative vote
of five members of the board tof seven)
before there can be q sale of any vessel
or any line of vessels
1t deals with sremodeling and improv-
ing vessels and with requirements and
provides for q liberal construction loan
fund.
There are other helpful provisions in
the public interest
Section 407 Of the act reafflrms the
policy and purpose declared in section
of the merchant marine act Of 1920
and the last section declares the rule
as TO ALLEGATION OF operations among
the various ports. ssfE,s@s-
The act was supported practically
unanimously by the commercial
terest Of the West, South and East.
The act was clearly for the purpose of
making sure, first, of the maintenance
OF our essential steamship lines, and
second. to provide mail and other aids
to enable the transfer of these lines
TO the local private companies for pri-
vate operation when conditions war
ranted, as well as aid the private
American companies that already
owned their lines. In order to main
tain these lines, requirements of YES
sells Is necessary and this act pro-
vided that such REFRESHMENTS could
be made while the Government con-
tinued to operate the lines and by CIV
ing aid that would enable the private
companies to make the replacements
under their own ownership.
Closest Cooperation Is Required.
The act requires the closest cooper
alton of the Shipping Board and the
Postmaster General. which so far ap-
pears to have approached failures in the
administration Of this law. 1t provides
that the Postmaster General shall deter
mine the mail routes to be established
the Atlantic, Mexican Gulf and Pacific
ports. 1t requires that the Shipping
Board shall determine the size, type,
speed snd other characteristics Of the
vessels to be used OH the trade routes
the frequency and regularity Of their
sailings, to meet the requirements of
the service. The Postmaster General
was charged with the details OF adver-
Using for bids and entering into con-
tracts and upon him is placed the full
responsibility of awarding the mail
contracts, with the limitations of sec
ton 407 Of the act, which reads as fol-
lows
- Section 407. Each contract for the
carrying of ocean mails under this title
shall be awarded to the lowest bidder
who, in the judgment Of the Postmas-
ter General, possesses such Quahfica-
tions as to insure proper performance
of the mail service under the con-
tract"
Keep in mind this legislation was not
intended TO take care Of the Post once
Department.
Its purpose was to aid our overseas
merchant marine.
We were endeavoring to induce the
purchase by American citizens and the
operation by them of the established
Government lines, to assist in main
tanning In private hands the estab-
lished routes and services To afford
facilities for prompt and efficient
transport OF the mails and cargoes
from our ports to the ports Of the
world was In mind, and little regard
was had for placing such contracts on
the basis of transactions In transport
tation. We were doing something more
than we had ever done before. We
were frankly arranging for contracts
that would place the carrying lines in
secure position financially while
building up q, comprehensive system
OF mail routes to and from all parts of
the world, under our flag and to fur
nish substantial aid TO maintain the
American merchant marine in a COM
.petitive position on the world trade
routes.
In reality we were approaching