Monday, Oct. 29, 1923

Direct Operation

The threat of the Shipping Board to undertake direct operation of its ships has at last been realized. Chair-man Farley of the Shipping Board announced a new plan of operating the five lines of Government vessels, known as the U. K. lines, which now connect the Atlantic seaboard and the United Kingdom. These lines have been operated by five different companies as " managing operators'." Now the business ol operation will be taken over by a subcommittee of the Shipping Board. It is probable that the former managing operators will be retained as booking and load.-ing agents (i. e.; to solicit passengers" and freight) if such an arrangement can be made.

This is the beginning of " direct operation" promised last June by the Shipping Board if it was unsuccessful in selling the ships outright. Similar arrangements will be made for operating the other lines of the Board, with such variations in detail as the experiment with the U. K. lines shows to be advisable. Ship owners and operators are very, very sceptical of the new plan's success.