The form of the organization of the Shipping Board was based originally on
its functions as a semi judicial body in regulation of rates. During the
war it was loaded with enormous administrative duties. It has been
demonstrated time and again that this form of organization results in
indecision, division of opinion and administrative functions, which make a
wholly inadequate foundation for the conduct of a great business
enterprise. The first principle in securing the objective set out by
Congress in building up the American merchant marine upon the great trade
routes and subsequently disposing of it into private operation can not
proceed with effectiveness until the entire functions of the board are
reorganized. The immediate requirement is to transfer into the Emergency
Fleet, Corporation the whole responsibility of operation of the fleet and
other property, leaving to the Shipping Board solely the duty of
determining certain major policies which require deliberative action.
The procedure under section 28 of the merchant marine act has created great
difficulty and threatened friction during the past 12 months. Its attempted
application developed not only great opposition from exporters,
particularly as to burdens that may be imposed upon agricultural products,
but also great anxiety in the different seaports as to the effect upon
their relative rate structures. This trouble will certainly recur if action
is attempted under this section. It is uncertain in some of its terms and
of great difficulty in interpretation.
It is my belief that action under this section should be suspended until
the Congress can reconsider the entire question in the light of the
experience that has been developed since its enactment.