The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

December, 1925 given to the use of the naval reserve to such extent as may seem rea- sonable and proper as a means of giving opportunity for the practical development of that branch of the service. For purposes of efficiency and economy I recommend the complete separation of the Emergency Fleet Corp. from the shipping board and the transfer to the Emergency Fleet Corp. of all ships, with all terminal and other properties and facilities used in connection therewith and now owned by the government, together with all books and accounts, the in- surance funds and the research bu- reau. I do not believe that the meth- ods now in force will ever be success- ful and to my mind the confusion and dissatisfaction now existing are only to be expected. There appear to be considerable duplication in work and a degree of conflict of authority which together lead to increased costs and lowered efficiency. Reorganize Fleet Corporation Reverting toomy suggestion of the advantages tobe obtained through co-operation among certain depart- ments of the government which are concerned in this enterprise, in order to secure this end, and at the same time to provide the reorganization of the controlling body of the Fleet cor- poration, I recommend that a board of directors or trustees, consisting of four members of the cabinet, specifi- cally the secretaries of the army, navy, commerce and the postmaster general, be set up. If, in your judg- ment, there should be representation at large on this board, I suggest that three persons representing the At- lantic, Pacific and Gulf regions be added to it. I further recommend that the President of the United States appoint, in addition to the persons named above, a chief executive of the Fleet corporation who shall also be a member and president of the board, and who, with the approval of the board, will dictate the policies and carry on the business of the Fleet corporation. All of the persons so appointed should serve subject to the pleasure of the President of the United States. As soon as the ships and other properties connected therewith are turned over to the Fleet corporation, as above constituted, I recommend ‘that a careful survey and inventory of all such ships and properties, to- gether with an audit of the books and accounts, be made, and that the books of the Fleet. corporation be adjusted thereto. At the same time it should be determined what number of ships, with suitable reserve, will be required MARINE REVIEW to serve the trade routes it is decided shall be operated, together with the terminal and other properties re- quired in connection therewith. Inas- much as the mails and the require- ments of the national defense need ships of a different character, and of a more costly service than the cargo carrying trade it seems rea- sonable that the extra costs of these services, both as to ships and opera- tion, should -be fairly apportioned among the governmental departments served and included in their respec- tive departmental budgets, and paid over to the Fleet corporation. Ar- rangements for proper continuance of these allowances, when and as earned, if the lines are sold for private op- eration, should be made. Sell Surplus Ships Promptly The remainder of the property, both ships and otherwise, should, in my opinion, be disposed of as promptly as practicable. While it is desirable to get as much of a return from this part of the government’s in- vestment as possible, the early dis- posal of it will bring the best ulti- mate results. The ships: not needed for service, if kept, will require con- stant attention and expenditure to prevent deterioration. The world to- day is overstocked with shipping. Most, if not all, of the ships not needed will later be found unsuited 473 for service, and, therefore, will have little future value. The present time seems opportune for scrapping them. This kind of material is useful now | and has good value. Shipyards now idle awaiting a return of shipbuild- ing can be well employed at this work during their period of idleness. I believe an attempt should be made to dispose of the surplus ships in small numbers from time to time, and spread them out among the various concerns that can scrap them, thus benefiting many industries, These suggested changes would re- store, the shipping board’s functions to their original status as largely a judicial and regulatory body, and while the regulation of seaborne traffic, by reason of world competition both in shipping and commerce, involves en- tirely different problems from those of the railways, for instance, and therefore should be very carefully en- tered into, still I believe some pro- vision for a regulatory body to which American shippers and shipping can have access, would be wise. The con- tinuance of the shipping board would provide for this among the other du- ties left to it. In conclusion, I desire to express my great appreciation of the services rendered and the information which has been freely placed at my disposal by all of the departments and agen- cies concerned in these matters in the preparation of this report. Harvey D. Goulder Resigns Harvey D. Goulder of Cleveland, internationally known admiralty law- yer, intimate friend and collaborator of the late William Livingstone, and for many years the legal mainstay of the Lake Carriers’ association, has again presented: his resignation as general counsel on account of the great amount of exacting work and time involved in carrying on_ the duties of this important office. He desired to retire from active partici- pation about a year ago but agreed to continue at the special request of Mr. Livingstone and on account of the critical stage of the Chicago drainage canal controversy then up before the Supreme Court and_ the subject of hearings in congress. Hav- ing successfully concluded this phase of the struggle Mr. Goulder felt com- pelled to again present his resigna- tion which was reluctantly accepted at a meeting of the executive com- mittee held in Cleveland Nov. 24. Harry Coulby, A. F. Harvey and G. A. Tomlinson were appointed by J. S. Ashley, president of the association, to consider the choice of a _ succes- sor. Harvey D. Goulder’s connection with lake shipping goes back many years. Speaking at the launching of the freighter JOHN STANTON over 20 years ago, he recalled that he could well remember when the JOSEPH S. FAY came out in 1871. That is now . 54 years ago and Harvey D. Goulder is still an active and dominant. per- sonality in maritime legal practice and is universally honored and re- spected for his high character and brilliant attainments. Lares) Bulk Freighter The Midland Shipbuilding Co., Ltd., Ont., is beginning construction on a very large lake vessel. This vessel will be 633 feet in length, 70 feet in beam and 29 feet in molded depth. She will be completed to British cor- poration class on the arch construc- tion similar to GLENEAGLES with the side tanks extending to spar deck. There will be 25 hatches 12 feet wide, fore and aft, 12 feet between centers; and six compartments in the hold. The carrying capacity of the vessel will be 14,500 tons. The machinery will be a duplicate of that for GLEN- EAGLES in every way.