Evening Star Newspaper, January 17, 1930, Page 6

A—6 MERCHANT MARINE | PROJECT QUTLINED Senator Fletcher Urges Close’ Co-operation in Carrying Out Act’s Provisions. Senator Duncan O. Fletcher, Demo-§ erat, of Florida, in a radio sddress.jast | that in awarding | | evening declared ocean mail contracts the Pdst Office Department and the Shipping Board should act in the best interests of the merchant marine, without necessarily choosing the Jowest bidder. Speaking in the National Radio Forum, arranged by The Evening Star | and sponsored by the Columbia Broad- | casting System, Senator Fletcher em- | phasized as the purpose of the Con-! gress in passing the merchant marine act of 1928 the development of pri- vately-owned steamship lines. The dress was broadcast over Station | WMAL. “In awarding additional mail con- tracts,” he said, “the Fost Office De- partment and the Shipping. Board 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 sald “We were approaching a ship subs but there were returns to the Govern- ment and the Post Office Départment. The point is this—it is a merchant marine act, and not a Post ‘Office 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 opinfon that a “reasonable interpreta- tion” of the law left the Postmaster General with authority td award the contracts with that intention a pri- mary consideration. Opinion en 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 an 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- tion, one favoring Government bwner- ship and operation and.the other favors ing Government aid to enable private ownership and -operatien. 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 honest action, in good faith, without favoritism, is essential. It is true that during the first few years after the enactment of the mer- chant marine act of 1920 tco much stress was laid upon the idea of get- ting the Government out of the ship: ping business and sales were made which resulted In & sacrifice of public | property and public interest. This was due to some extent to the conflict of view as to policles that should be pur- sued and to poor administration in at- tempting to carry out various policies. The controller general recently con- demned the Shipping Board and Fleet | Corporation for having failed in many particulars to follow Goverriment ac- counting methods, but it is believed such a course would have made it ut- terly impossible for the Government's shipping agencies to meet commercial necessities. Most of the controller gen- eral’s criticisms had to do with condi- tions, admittedly bad, that existed in previous years. It is believed that most of these conditions have been remedied and will not recur, and certainly if the Government's shipping agencies carmy out the clear object and purpose of Congress they will not subject them- selves to further criticism such as was made by the controller general, par- ticularly with reference to transactions involving the ruthless sacrifice of Gov- ernment property. Act of May 22, 1928. It was partly to meet the situation that developed and avoid the sacrifices of the ships and strengthen the policy and purpose expressed in the act of 920 that Congress felt called upon to psss the act of 1928. The very first section of that act reads as follows: “Sec. 1. The policy and the primary putpose declared in section 1 of the merchant marine act, 1920 (U. 8. C, Title 46, Paragraph 861), are hereby confirmed.” of the essential shipping lines, we should make sure of the maintenance of these lines while we were seeking alds 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 im ex- pression, have left some impression, rather widespread, tending to discourage and obstruct the demands of the country and ulg“ urpose d‘echred by ngress. These have beén. h ‘o competitive In y with . previous ‘aétion dating as far back, #t least, as 18]] the merchant marine’ act of 1920, de- clared in its first sentence: “That it is necessary: for the fiational defense and for tile proper growth of 1 and commerce that have A mer- chant marine d and most suitable t; Meient to carry the greater of 'its. ' merce and serve:as.a naval or iry auxiliary in time of war or mational emergency, ultimately ta. be owned and operated pri by eitizens of the United , 1t is hereby declared to be the policy of the United States to do whatever may be necessary to de- velop and en the maintenance of such a mer it magine.” 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 a| solvent business man in the sale of similar vessels or property which he is not forced to sell,” keeping in ‘miind ‘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 o the foreign commerce of our country. In both sales and the assignment of wessels for operation the board was di- 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- emment and to- insure- - competitive rates and service to the shippers, and to prevent any monopoly of our steam- ship services, Private Linés Encouraged. It is well to point out here that at that time we had practically no pri- vate American steamship companies operating in foreign trade and it was necessary to encourage the organization and development of such companies to ultimately take over these services and operate them on their own account.’ It was under these provisions that the Shipping Board eventually adopted a 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 conceFhing the primary object and purpose of Congress. Liftle less doubt.can exist that pass- ing the vessel into priviite hands was of secondary consideration: There soon developed differénces of opinion as to the best method of dis- posing of the Government-owned: fleet. One school advocated the fmmediate sale of the fleet to private. luterests without regard to price and'Wwith po mssurance that the serviee would be permanently maintained, making the elimination of the Government fleet of first importance in carrying out the Jaw. Another school advocated a more orderly disposition of the fleet 50 as to make sure of permanent operation in § the interest of our commerce and the. domestic communities prymarily con- cerned when the vessels were once placed In private hands. This latter method is preferred, and I believe that | 1f that plan should fail there would be nothing left but direct Government ownership and operation if we hope to establish and permanently maintain a merchant marine, in overseas trade, and this the entire country needs and will support. The board finally adopted the policy xérted by selfi! 5y Interesis.rhich might be | 35, %, Soos Necessaryz® 'f" { I ‘This act requires the affirmative vote of five members of the board (of seven) before there can be & sale of any vessel or_any line of vessels.. It deals withsremodeling and improv- ing vessels and with replacements and pro:;lde! for a liberal construction loan und. ‘There are other helpful provisions in the public interest. Section 407 of the act reafirms the policy and purpose declared in section 7 of the merchant marine act of 1920 as allocation operations among ports. = act . was supported practicall by ithe oa—-nh)—-.h:-y tenance of our essential steamship lines, and second, to mv‘d: mail and other aids to enable transfer of these lines to the local private companies for pri- vate operation when conditions war- ranted, as well as aild the private American companies that already owned theélr lines. In order to main- tain these lines, replacements of ves- sels 15 necessary and this act pro- vided that such replacements could be made while the Government con- tinued to operate the lines and by giv- ing aid that would enable the private companies to make the replacements under their own ownership. Closest Co-operation Is Required. The sict requires the closest co-oper- ation of the Shipplng Board and the Postmaster General, which so far ap- pears to have gpproached fallures in the administration of this law. It provides that the Postmaster General shall deter- mine the mail routes to be established and desirable 50 as to equitably serve the Atlantic, Mexican Gulf and Pacific ports. It requires that the Shipping Board shall determine the sizse, type, speed snd other characteristics of the the frequency and regularity of - their sailings, to meet the requirements of the service. The Postmaster General ‘was charged with the details of adver- tising for bids and entering into con- tracts and upon him is placed the full responsibility of awarding the mail contracts, with the limitations of sec- :Jon 407 of the act, which reads as fol- lows : - “Section 407. Each contract for the carrying of ocean mails under this title shall be awarded to the lowest bidder who, in the judgment of the Postmas- ter General, possesses such quaNfica- tions as to insure proper performance of !il: mail service under the eon- Keep in mind this legislation was not intended to take care of the Poét Office Department, Its purpose was to ald our overseas merchant marine. ‘We were endeavoring to induce the purchiate by American citizens and the operation by them of the established Government lines, to a: taining in private h lished routes and service: facilities for prompt transport of the mails from our ports to the ports of the world was in mind, and little regard was had for placing such contracts on the basis of transactions in transpor- tation. We were doing something more than we had ever done before. We were frankly arranging for contracts that would place the carrying lines In a secure position financially while bullding up & comprehensive system of mail routes to and from all parts of the world, under our flag ,and to fur- nish_substantial aid to maintain the American merchant marine in a com- petitive position on the world trade Toutes. In reality we were approaching a Tickling, difficult swallowing, and soreness, are usually re- lieved by the timely use of Tonsiline, the exclusive sore throat remedy. Over 35 years of successful use prov Tonsiline safe and depend- able for young' andold. Atall of disposing of the various established services in an orderly manner and to the private American companies who were organized and developed for the specific purpose of uiltimately owning lines, and to utilize the value of the ships to meet some of the differ- entials imposed on our ship owners when in competition with 'mnfiu, lines. Of courze in the of this or any other plan, intelligent, druggists, 35¢, 60c. Hospital size $1.00. TONSILINE vessels to be used on the trade routes, [, Tnk EvENING BACKS U. S. MERCHANT M SENATOR DUNCAN U. FLETCHER Of Florida, who spoke last night in The Star Rad| Forum,.—Star Staff Photo. ship subsidy, but there were returns to the Government and the Post Office Department. We call it by the less objectionable | | ships is made impossible, resulting in name of subvention. The point is this—it is & merchant marine act, and not & Post Office De- partment act. Powers are glven the Postmaster General, with the expectation that that official and that co-operate_with the_ Shipping Board and the Merchant Fleet Corporation to advance the purpose and spirit of | the act. The classification of vessels and the compensation under the con- | tracts are all set forth in the act. The pay is not to excced from $1.50 to $12 per nautical mile—depending on the class of vessel. Recurring to section 407—the source of trouble—it will be observed, the term “lowest bidder” is somewhat qualified. It would seem that a reasonable in- terpretation of all of the law bearing on the subject would leave the Post- master General with ample authority to award the contract to the best in- terests of the merchant marine, without necessarily choosing the bidder who of- fered to accomplish the service for the least compensation. If all these mentioned sections are considered, and they surely are a part MAURICE partment would | NTAR, of the law, & wide discretion is extend- ed in determining who is the “lowest bidder.” Mere unqualified figures are not sufficient. These other factors men- tioned in the sections referred to must enter into that decision. I belleve the necessary authority and power are to be found in the law as it stands to meet the clear intention of Congress and to aid the lines es- tablished and developed by the Gov- ernment st great expense when they are transferred to the local private companies who are best qualified to own and operate them. Urges Amendment of Act. It would be well to relieve the sub- Ject of all question for Cougress to amend the act by directing the con- tract in each case shall be let to the 4 responsible bidder who complies with the requirements set forth in section 7 of the act of 1920 &nd meels the | conditions respecting the purpose to establish and maintain an American merchant marine. To make exactions upon an operator of an established line which he has| acquired from the Shipping Board, on the expectation of obtaining the mail | contract, as to replacements, which he is unable to meet and which are far In excess of the requirements imposed by the Shipping Board when the con- tract of purchase was made, would be manifestly unfair and would defeat the very purpose of the act. Specifications and conditions as to replacements, or in other respects, as | to which the Postmaster General has & wide power, may be set up in such fashion as to preclude the possibilities of compliance, In that case no contract follows, the aid is prevented, the opportunity to builld up a desirable service is not avalled of, the disposal of Government sacrifices. ‘The Government still has many lin:s to dispose of, worth and for which it can obtain many millions of dollars, and it is In the public interest fo so administer these laws as to not only fusure the maintenance of our estab- lished services, but to return to the Government many of the millions spent in the development of the lines. It would be most difficult to provide in detail requirements adapted to every case that might arise. The adminis- tradition of the law, therefore, becomes of prime importance. The manner of putting & law into execution and the process of administration at times re- sults in making the purpose of Congress miscarry. Much depends on the ad- mipistration of the law in good faith and effectively. One provision of the 1928 act is, I repeat,that these mail contracts shall be made for service equitably distrib- uted. Under the contracts thus far let mail pay will amount to approximately $12,600,000. Of this amount only $367,- 657 has been allotted to the South Ai- lantic and $205,666 has been allotted to r f CHEVALIER IN ““THE LOVE PARADE” A Paramount Screen Musical Romance with JEANETTE . JEANETTE MACDONALD ™ Incredibly lovely, charmingly gowned, sensational of voice. Hearher sing‘‘Dream Lover.” MAURICE CHEVALIER and JEANETTE MAcDONALD In some of the most amusing, thrilling and exciting love scenes ever filmed. MACDONALD Entertainment supreme! . . else can describe the grace, WASH1INGLON, EAGA! FRIDAY, JA the Gulf. In and out of these ports runs annually one-third of the com- merce of the United States, much more than the Pacific Coast furnishes, and yet the mail pay allotted to the Pacific Coast amounts to $5,788,512. To give & New York company a contract on a route out of the Gulf cannot be con- sidered as carrying out the mandate that these aids shall be equilably dis- tributed. It is estimated that the receipts of the Post Offics Department on ocean mails amount to some $13,500,000 per annum. There has been proposed®an increase in pay to railroads for carrying the mails of approximately $18,000,000 per annum. It is estimated the Govern- ment loses nearly $75,000,000 by reason of posial rates gn periodicals, Considering the returns, the benefits to commerce, the advancement of our merchant marine, the requirements with respect 1o the demands of national! defense, it Is believed the act of 1928 is needed and ought to be carried oul in its purpose and spirit. In awarding additional mall contracts the Post Office Department and the Shipping Board should first take care of the established Government lines which can be sold to the operators of those lines with this mail aid. No steamship company which operates forelgn flag ships in competition with American flag ships should be given this mail aid. This aid is intended solely for private American companies which operate American flag ships and whose sole interest is the building up of the American merchant marine. Industrial lines, engaged in serving only their own particular business con- cerns wishing means of transporting their own products, almost exclusively, | should not be considered eligible bidders. | varying circumstances in each case must | be taken into consideration in awarding | contracts with the view always in mind, | as of first importance, the achievement | of the object to secure the establish- ment and maintenance on a permanent | basis of an adequate American mer- | chant marin Best Purgative for the congestion, reduces com- plications, hastens recovery, LANE and LILLIAN ROTH, Nothing wit and sheer delight of this fascinating and gay musical romance. All forms of entertainment in one glittering whole in this Paramount NEW SHOW WORLD picture. q Irresistible, irre’ pressible Maurice Chevalier, the idol of France and the greatest personality on the American Screen . . Jeanette MacDonald . . . golden haired . . . golden voiced beauty of Broadway. . wonderful melodies of Victor Schert- zinger. Lovely costumes, gorgeous scenes. .A smiling sophisticated ro- manece of queens, courts and love — sensationally directed. An LUBITSCH | PROD MAURICE CHEVALIER more attractive and fascinating than words can tell. Hear him sing **No- body’s Using It Now.” BEGINS ' TOMORROW COLUMBIA THEATER A PARAMOUNT, SCREEN MUSICAL NUARY™ 17, 19s6. - UDGE T0 TESTFY IN PARKS TRAL Woman Accuses Him of Slay- ing 2-Year-0ld Tim- othy Rogers. had come to her home in Camden, seized | Timothy by the throat, choked him and held him under the running water in the kitchen sink. The statement said that the jurist had declared she was trying to disgrace him through the child. In another statement, Miss Parks was alleged to have said that Earl Farr of Philadelphia, her sister’s husband, had come to her house and after learning what had occurred, drove her to Abse- con, N. J., in an automobile with the body of the boy in a suitcase and waited while she disposed of it in a thicket. Parr also is expected to take the stand to den{ these allegations. Prosecutor Baldwin said today that the Camden County grand jury had in- vestigated the statement fmplicating | Corio and that he had been exonerated. By the Associated Press. CAMDEN, N. J., January 17.—Judge | ORTED | Joseph A, Corio of the Atlantic City | . Common Pleas Court s to take the |p Witness stand at the trial of Gladys May | Thiee Children Arrive on Steamer Parks to deny her statement that he & Brom - Chishodtovaliy, was the slayer of 2-year-old Timoth v i | NEW YORK, January 17 (#).—Three small children who traveled without adult escort all the way from Czecho slovakia to Join relatives in this coun- try arrived Wednesday night aboard the liner Aquitania, : ‘The children are Michael Carney, 10, | who will go to the home of his fathe ers. \ Miss Parks is accused of killing Tim- othy and his 4-year-old sister Dorothy. The two children had been left in her care by their father, Allan N. TS, ., after the death of his In one of five statements obtained by Prosecutor Clifford A. ldwin shortly after she surrendered to the police in Newark November 9. Miss Parks was | quoted as having said that Judge Corio 11th & You St.NW. 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