Almost Sold

Recently, the Shipping Board invited bids for the purchase of 200 of its tied-up steel ships for scrapping. While the offer was out, at President Coolidge's urging, the Board agreed that henceforward the disposal of Government ships should be in the hands of the Emergency Fleet Corporation. The reason was that the Corporation, headed by one man (Admiral Leigh C. Palmer), was in a better situation to conduct negotiations decisively and effectively than the Board, with several members. The Board merely reserved the right to pass on the offers for ships which Admiral Palmer recommended for acceptance.

Two weeks ago, 20 bids were received for the purchase of the 200 ships offered for scrapping. Last week, Admiral Palmer recommended that the high bid, that of the Boston Iron and Metal Co. of Baltimore for $1,370,000, be accepted. Promptly the Board rejected the bid and reopened negotiations, hoping to get a better price--practically restoring the status quo by taking the power of negotiation again into its own hands.

At the time the 20 bids were opened, none from Henry Ford appeared, although he said he had sent one. Since then he has made a bid which will be considered in the final award.

Some observers predicted that this action would result in the President's requesting Congress to dissolve the Shipping Board. For long the Administration has regarded the Board as ineffective, muddling, unbusinesslike, and has wished to transfer control of the Government's fleet to the Emergency Fleet Corporation. The Board has steadily fought to retain its powers, seeking by lip service to the President to convince Congress that there was no need to have it shorn of its powers. Sooner or later, say observers, there will be a showdown.