Evening star., 1939-11-17
Reorganization Plan
Changes One Source
Of Ashburn Custer
Differences Of Opinion
Over Waterways Agency
Mounted After July I
BACKGROUND

6AChGhOUND-
Gen. T. @. Ashburn, until
Wednesday had been president OF
the Inland Waterways Corp.
ever since it ,Oas established in
1924.
The corporation, Which oper-
dtes the Government barge lines,
1Das under the War Department
until transferred to Commerce
July I by President RooseDelts
reorganization order. Gen. Ash
burn said he 1Das ousted because
he tDanted to run the scexporation
as a business enterprise. The
Commerce Department. laid the
trouble to cutting off the gen.
erals personal expense hccount.
New relationships, new policies
and new methods effected by the
Government reorganization pro-
gram were believed by many to be
at the root of the bitter controversy
developing this week over the sum-
mary resignation of Gen. T. @
Ashburn as head of the Inland
Waterways Corp.
Created in 1924 at the suggestion
Of Gen. Ashburn and functioning in
semi-independent fashion ever since
under the War Department, the cor
poration was shifted to the Com.
merce Department July / by one o1
President Roosevelt's reorganization
orders.
According to spokesmen for the
Commerce Department, differences
of opinion over operation of the
agency have been mounting ever
since, reaching climax when ar
annual blanket $4,000 expense &C
count for Gen. Ashburn was ordered
discontinued.
Discharge Called Abrupt.
The department yesterday claimed
Gen. Ashburn had been "unco-
operative" since discontinuance OF
the account and had gone over the
head of departmental superiors in
appealing to the White House. The
request by Assistant Secretary of
Commerce j. Monroe johnson for
Gen. Ashburn's resignation within
one hour" followed.
White House Secretary Stephen
T. Early offered no comment yes
terday on the claim that Gen. Ash
burn had appealed to President
Roosevelt, but he did say the White
House was rather disturbed" at the
abrupt fashion in which the action
seems to have taken place"
Gen. Ashburn also made no COM
ment on the departmental explana-
ton.
Chester Thompson, former mem
Der of Congress from Illinois, was
appointed to succeed Gen. Ashburn
in the $4,000 job.
Corporation Hauls Freight.
Gen. Ashburn often has beer
called the instigator of the corpora
ton. In 1923 he suggested to the
Secretary of War that corporation
be created to haul freight over the
navigable waterways and see if the
scheme of developing them wa.
worth the money spent in dredging
and maintaining them.
Those who fell in with the Ash.
burn idea argued that it would cut
across the Government red tape
which might hamstring operations
as a part of regular Government
department. Congress agreed, ano
Gen. Ashburn became first head OF
the corporation. Last year it re-
ported a profit of $1,405 ,449.
The corporation, one of the first
of the postwar essays into the field
of private commerce, operates q
towboats and 276 barges on the
Mississippi, Chicago, Illinois, Mis-
souri, and Warrior Rivers and or
the intercoastal canal from Houston
to Mobile.
1t pays taxes only on that portion
Of the property which is owned BY
the Warrior River Terminal CO
These taxes go to Alabama, where
the subsidiary corporation is In.
corporated.