Evening star., 1932-04-02
SHIPPING BOARD
| SELECTION HELD UP
President Hopes for Econo-
mics Through Reorganizing
Merchant Marine.

Hopeful that Congress will enact leg
| islation to bring about the reorganiza-
| ton of the American merchant marine
with a view to effecting drastic reduc-
, tion of expenditures, President Hoover
is going to hold off making any ap-
| pointment for the present to the United
States Shipping Board to fill the va
cancy caused by the recent death OF
| z. G. Plummer.
If this reorganization is effected the
situation as to the membership OF the
| Shipping Board will be greatly altered
and the President said today, while
| discussing the matter at his regular
newspaper conference, that he does not
propose to fill this vacancy until the
matter of reorganization has been set
| tied
The President stated in full: Il do not
propose to fill the vacancy on the Ship
/ ping Board created by the death OF Mr..
! Plummer, for the present. I am in
I hopes that Congress will pass the legls-
lation necessary to reorganize the whole
of our merchant marine activities In
order that we may make drastic reduc-
| tion of expenditures in this session. II
| so, the situation as to membership OF
| the board might be greatly altered.
Importance Pointed Out.
II have pointed out in messages and
elsewhere on several occasions the i'm
portance of this matter in production
of sound economy We have merchant
marine activities in many different de-
partments and independent establish
ments. We now expend in aid and
leans to the merchant marine services
| directly and indirectly about $780,
600, 900 per annum. We cannot remedy
| the situation without legislation. The
present Shipping Board should be abol-
ished. It's administrative functions
should be transferred TO the depart
ments. This is not criticism of the
| board, but a criticism of an impossible
and expensive form of reorganization
and divided responsibility.
The board was designed originally for
| regulatory purposes and was set up by
Congress independently of the Execu-
tive. 1t has been subsequently given
enormous administrative and financial
| functions. The president has no au-
| thority or control over its activities.
With regional and bipartisan basis of
| selection, together with independence
from all control, except the indirect
| pressures of Congress, it has had eX-
treme dificulty in functioning cohe-
| sively, and in any event no board or
commissioner can successfully func-
ton in executive work. Moreover. the
boards authority in certain matters is
divided with the Postmaster General.
We are under the law giving ships sub
sides as mail contracts. The Post
master General necessarily looks at
them as a matter of mail, the Shipping
Board as a matter of trade routes, and
matter of selling ships with a mail
subsidy attachment. There can be no
adequate check or co-ordinated direc-
tion of expenditure or commitments.
There is a function in regulation of
shipping rates which should be extended
to intercoastal rates and to inland
water rates which is much needed
| function for the development of Ship
ping, which could be administered at a
comparatively small sum per annum by
| a new organism comprised of the pres
ent members Of the Shipping Board, for
their experience is most valuable.
Drastic Steps Called For.
"As I have said, there are many other
merchant marine activities in the Gov
ernment, and If we are to secure real
economies We must have drastic con-
solidation and more definite response
| bility."
President Hoover. in a special mes
sage to Congress on February II last,