New Plans

About six weeks ago Edward P. Farley, Chairman of the Shipping Board, sailed for Europe. Before sailing, he announced that the Shipping Board had finished with its plan of operating vessels through agents under the so-called MO4 contract (Managing Operators' contract No. 4). The Shipping Board was prepared to undertake direct operation ; it would group its 81 services into about a quarter as many lines and hire agents only to book passengers and load freight. The consolidation and inauguration of the plan would, he said, begin at once, being first applied to the five lines plying from the Atlantic coast to the United Kingdom.

While he was gone no progress was made.

Last week he returned. There was a four-hour session--presumably a heated session--of the Shipping Board. Mr. Farley then announced that the plan of direct operation with loading agents had been sacked. Instead the consolidation of the Government's shipping lines will go forward under a modified form of the present MO-4 contract.

The only difference will be that the operators will be given a definite commission on freight revenues as their sole payment. All "allowances," "husbanding fees," etc., will be abolished.

During Mr. Farley's absence the Board had evidently become convinced that the proposed form of direct operation would be too expensive. Under the new plan a minimum saving of $1,500,000 a year is expected.