Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-17
MERCHANT MARINE
PROJECT OUTLINED
Senator Fletcher Urges Close
Cooperation in Carrying
Out Acts Provisions.

CSHdVoE DuIlCdH ". EICbCAicE, OCtnO-
erat, of Florida in a radio address last
evening declared that Ia awarding
ocean mail contracts the Post once
Department and the Shipping Board
should act in the best interests of the
merchant marine, without necessarily
choosing the lowest bidder
Speaking in the National Radio
Forum, arranged by The Evening Star
and sponsored by the Columbia Broad
casting System. Senator Fletcher en-
phasized as the purpose of the Con-
greSs In passing the merchant marine
act of 1923 the development of pri-
vately-owned steamship lines. The ad-
dress was broadcast over Station
WMAL.
I'm awarding additional mail con-
tracts" he said. the Post ONCE De-
should first take care of the established
Government lines. which can be sold
to the operators Of those lines with this
mail aid"
Government Gets Return.
In passing the act of 1928, he said,
1--WE were approaching a ship subsidy
but there were returns to the Govern
ment and the Post ONCE Department.
i
marine act. and not q Post once De-
partment act"
Asserting that It was the clear in
tent Of Congress to develop the mer-
chant marine to the point where pri-
vate business could take the ship lines
over. Senator Fletcher expressed the
opinion that a reasonable interpreta-
ton" of the law left the Postmaster
General with authority to award the
a.. kHAA s,akA VNVf-
mary consideration.
Opinion on Subject Studied.
Senator Fletcher's address follows:
The foundation of this discussion IS
the law as enacted by Congress. Certain
policies have developed. and have been
pursued, some inside the law and some
in spite of the law.
Throughout the country it has been
generally recognized that the wise and
advisable thing to do was to establish
and maintain nm adequate American
merchant marine. The purpose of Con-
gress has been to do that There has
been some difference of opinion as to
how that could best be accomplished.
This has given rise to practically the
only open controversy. .,.,.....-,
We have long had two schools OF
thought on our merchant marine QueS-
ton, one favoring Government owner
ship and operation andath other favor
ing Government aid to enable private
ownership and operation. Many were
In the former group because they felt
that due to the fact we had established
and were operating under control of
the United States Shipping Board most
of the essential shipping lines, we should
make sure of the maintenance of these
lines while we were seeking aids to
enable their gradual transfer to the
local American companies operating
them for the Government. ~
There have been influences which,
without being marked or loud In ex-
preston, have left some impression,
rather widespread, tending to. discourage
and obStruct the demands Of the
country and the purpose declared by
Congress. = fetk Z
These have been. exerted by selfish or
competitive interests, which might be
expected and should be ignored.
Merchant Marine Held NecessarSssE
In harmony with previous action
dating as far back. at least, as 1915.
the merchant marine act Of 1920, de-
clared in its first sentence: -
That it is necessary for the national
defense and for, the proper growth of
its foreign and domestic commerce that
chant marine Of the best equipped and
most suitable types Of vessels SUFFICIENT
to carry the greater portion OF its COM
nierce and serve as q naval or military
auxiliary in time of war or national
emergency, ultimately to be owned and
operated privately by citizens Of the
United States, and it Is hereby declared
to be the policy OF the United States
to do whatever may be necessary to de-
velop and encourage the maintenance
Of such a merchant marine"
To accomplish this the Shipping
Board was directed to- sell its war
merchant fleet when consistent with
good business practice and to use
methods that would be adopted by
solvent business man in the sale OF
similar vessels or property which he is
not forced to sell, keeping in mind at
all times the objects and purposes to
be attained by the act. In the mean
time, however, the board was directed
to operate such of the fleet as was
found to be necessary in establishing
and maintaining trade routes essential
to the foreign commerce of our country.
In both sales and the assignment of
vessels for operation the board was d.
rected TO give preference to citizens Of
the United States who had the support,
financial and otherwise, of the domestic
communities primarily interested in the
operation of these services. This was
done to encourage the formation In
these communities of private American
steamship companies who could ultima
tely purchase the lines from the Gov
eminent and to. insure competitive
rates and service TO the shippers, and
70 prevent any monopoly of our steam
ship services.
Private Lines Encouraged.
It is we'll TO point out here that at
that time we had practically no pri-
vate American steamship companies
operating in foreign trade and 1t was
necessary to encourage the organization
and development Of such companies to
ultimately take over these services and
operate them on their own account.
1t was under these. provisions that
the Shipping Board eventually adopted
. policy of giving preference in sales
to these local private American COM
panies who had with the Government
developed these lines, built up strong
organizations both at home and abroad
and thus fitted themselves to become
successful purchasers Of the lines when
conditions warranted the transfer of
the lines to the private companies.
There can be no doubt concerning
the primary object and purpose Of
Congress.
Little less doubt can exist that pass
ing the vessel into private hands was
of secondary considerations:
There soon developed differences of
opinion as to the best method Of dis
posing of the Government-oWned fleet.
One school advocated the immediate
sale Of the fleet to private interests
assurance that the service would be
permanently maintained, making the
elimination Of the Government fleet OF
first Importance in carrying out the
law Another school advocated O more