Evening star., 1943-03-30
The Political Mill
Legal Bottle Over Ship VoIues
Not to Holt Lund Confirmation

|rmution
Admiral Land in letter to
Senator Bailey has pointed out
that the ruling of the controller
general in these matters was So
licited by him as soon as he had
learned that some of the members
OF the controller generals staff
were of the opinion that the
methods used by the Maritime
Commission for fixing rates and
values were incorrect. And far
from attempting to conceal any,
thing, he said the commission
was at all times ready to supply
information, and that the House
Committee on Merchant. Marine
and Fisheries has been Conduct
ing complete investigations of all
of the items upon which the con-
troller general has commented.
Further still, Admiral Land in
sisted that as of December IL,
1912, he had informed all ship
owners, whose property was in
volved, that pending Qualification
OF the problem presented by the
different views of the controller
general and the Maritime Com
mission payments would be with
held in varying amounts for diff
ferent services. The amount
Withheld, he said, is approaching
$200,000,000. This was done to
avoid any danger of violating the
ruling of the controller general.
Conferences with the controller
general, Admiral Land continued,
are in progress and he expressed
a hope that an adjustment salts
factory to both agencies would
soon be reached.
Rates Reduced.
Admiral Land pointed out in
the same letter that the commits
sion and the War Shipping Ad-
ministration have been greatly
successful in reducing rates and
values much below what they
were during the last World War.
During that war, he said, earn
ings of freighters and tankers on
"bareboat charter" were fixed at
$4.l5, which the Court of Claims
increased to $3.50 in some cases.
Under existing charters, these
rates have been between 81 and
s1.50, or approximately one-third
of the earnings permitted in the
last war. Insurance values for old
treighters and tankers, he said,
start at a basic rate of sos per
ton, while the comparable rate in
the last war was $3.50 and $l65.
In 1941 the value of freighters
and tankers had risen to between
$10O and $3.50 per ton.
Ship earnings, Admiral Land
said, increased greatly in l94l,
before this country was at war
and were not based on money
received from the Government.
Since then the commission and
the War Shipping Administration
have drasticaly reduced rates.
Former Attorney General Will
liam D. Mitchell was requested to
60 into the matter of prices which
the War Shipping Administration
may pay for requisitioned YES
sells. He upheld the construc-
ton placed on the law by the
Maritime Commission. He urged,
however, that the present Attor-
ney General be requested to make
ruling, and thereby end the dis
pute between the two agencies.
Mr.. Mitchell further recon-
mended that if the ruling was
adverse to the commissions view,
then legislation be sought to
change the law to conform to
that view.
Senators differ widely over the
Interpretation of the law, some
of them uphclding Admiral Land
and others, the Controller Gen.
eral. There have been plain init
mationss that there must be no
ship scandals growing out of
this war, and no unconscionable
profits.
While some of them are firm
in their view that the Controller
General is correct, they never
theless will vote for Admiral
Land, whom they admire and re-
spect-and to whom they give
great credit for the success of the
shipping program.