Evening star., 1935-06-18
SHIPPING INVOLVED
in MITCHELL ROW
Merchant Marine Policy
Linked to Charges by
Ousted Official.
BY G. GOULD LINCOLN.

Charges made by Ewing Y. Mitchell,
ousted Assistant Secretary Of Com
merce, against the operation Of the
United states Shipping Board Bu-
reau under the direction of Secre-
tary Roper, raise the following issue:
Is the United States Government
intent upon building up a privately
owned and operated American mer-
chant marine?
Mr.. Mitchell has laid particular
emphasis on what has been done with
the Leviathan in his attacks upon
Secretary Roper and others in the
Department of Commerce. A great
deal probably will be heard of the lay
ing up of this vessel before the vari-
Gus investigations now being made
into the Mitchell charges have been
concluded.
Insists Penalties Due.
Mitchell insists that the failure Of
q contract to keep the Leviathan in
commission for five years, after
receiving a Government subsidy Of
SO 900 900, should have brought about
the imposition of the penalties pro-
vided under the contract. These
penalties would have compelled the
company to pay to the Government
upward of 100000 and would have
turned all the ships over to the Gov
eminent.
1t was shown that the shipping
company was losing $500,000 a year
on the operation Of the Leviathan.
Further, the company urged its viii
lingness to build a new ship to take
the old Leviathan's place. Secretary
Roper, having recommended to the
President and to Congress new ship
subsidy legislation, held up a suggest
ed loan to the company to help with
the construction of new vessel, at
least until Congress should have acted
or failed to act on the new shipping
bill at the present session. In the
meantime q contract was entered into
with the company permitting the lay
ing up of the Leviathan with the
agreement that $500 900. the loss for
one of the two remaining years Of
the contract to operate that vessel,
should be paid to the Government.
Millions Spent on Marine Policy.
The contention Is made that to have
done what Mitchell says should have
been done-compel the comany to
operate at loss or to suffer the heavy
penalties carried in the contract
would have been to hamstring this
shipping company, operating under
the American flag. The Government
has been at pains to spend millions
of dollars since the World War in
its effort to encourage permanent
overseas American merchant marine.
In its effort to foster the merchant
marine, the new contract with the
United States Lines regarding the
Leviathan was entered into.
Earlier in Mr. Mitchell's service as
Assistant Secretary C: Commerce, the
United States Shipping Board Bureau
came under his direction. along with
the Bureau Of Air Commerce and
the Steamboat Inspection Service. He
was relieved Of the supervision Of the
Shipping Board Bureau. however and
it was placed directly under Secre-
tary Roper. The report is to the
effect that when Henry H. Heimanr
was appointed director of this bureau
he was unwilling TO take the place
if the bureau was to be under the
supervision of Mitchell Anyway. Hei.
mann became director and the bureau
was taken away from Mitchell. Hei.
mann is said 70 nave made q gooC
record as director and to have col.
Iected for the Government some $780,
900 from shipping companies to which
the Government was entitled.
Mitchell Early Roosevelt Man.
| Mitchell was disgruntled becaus'
the Shipping Board Bureau was taker
from his direction, it is said. One o
the chief charges made against hin
appears to have been that he was o
an inquiSitorial turn rather than Al
administrator and that he wss ols
rupting the service.
When President Roosevelt was {
candidate for tns Democratic presi
Dental nomination, Mitchell was early
aboard the bandwagCn. He assured
the President and Chairman James A
Farley of the Democratic Nationa
Committee and Secretary Roper tina
he would work to deliver the Mlssour
delegation to Roosevelt at the nationa
convention. After former Senate
James A. Reed had had a compli
mentary vote at the convention tn
delegation did swing to Roosevelt
Some of the delegates. however, in
sist that they had Roosevelt for (
second choice from the start ard tina
Mitchell had nothing to do with tn
delivery of the vote.
After President Roosevelt had beel
inaugurated Mitchell turned up il
Washington. His desire, it is said
was to be appointed to a foreign pos
in the diplomatic corps. Mr. Farley
however, could not or did not find I