Stage Setting

The Government's management of its merchant marine was last week again subordinated to a quarrel among the managers. The Shipping Board mounted its rostrum and announced the removal of Admiral Leigh C. Palmer as Chairman of the Emergency Fleet Corporation and the appointment of Elmer E. Crowley of Massachusetts as his successor. Admiral Palmer was offered a subordinate post and declined it. His exit was followed by the exit of a number of his subordinates, some following him out of loyalty, others ousted by the Board "for the sake of efficiency."

This action took place while President Coolidge was in the West at the convention of the American Legion. On his return he indicated his displeasure, and it was intimated in the press that he would seek the abolition of the Shipping Board for defying him.

The real issue between the President and the Board is one of authority. Its basis is historical. The Shipping Board was set up as an independent semi-judicial body, to act as a sort of Interstate Commerce Commission of the Seas. The War came. An immense Government merchant fleet was built and operated by the Emergency Fleet Corporation, control of which Congress had vested in the Shipping Board. With the after-War shipping mess, Mr. Coolidge began to look around for a way out of the tangle. He decided that the executive functions of the Board (managing and sale of the merchant fleet) should be under the Fleet Corporation and separated from the semi-judicial functions of the Board.

To this end he prevailed on the Board to appoint Admiral Palmer head of the Fleet Corporation and delegate its executive powers to him. The Board did so rather unwillingly. Now it is revolting from this state of affairs and restoring the status quo. This is the cause of the trouble.

An element in the Board headed by Commissioners Benson, Haney and Thompson set out on this course some time ago. The President demanded the resignation of Mr. Haney, and Mr. Haney declined to resign (TIME, Sept. 14). Two weeks ago (Time, Oct. 12) the Board withdrew its delegation of powers to Admiral Palmer. Last week it removed him.

The fight will go to Congress with the President and his supporters standing for unified and independent control of the Board's executive powers by the Emergency Fleet Corporation, with its head responsible to the President; and the Shipping Board standing for control by a board of several members from various geographical sections, independent of the President and responsible to Congress, and with both executive and semi-judicial functions.