The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-03-13

Use of the merchant fleet built by
the Government during the war as
an asset against which securities
would be issued and granted former
service men as bonus was advo-
Gated today by Jerome A. Ditchy, OF
Cleveland, Ohio. before the House
Ways and Means Committee.
Outlines His Plan.
Dltchy placed the value OF all the
holdings OF the Shipping Board at
about $1,000, 900 900 as a working
basis, which he would turn over to
private corpops:ion, the securities OF
which would tc issued to former SER
vice men. "Such action would insure
the retention of American merchant
marine in American hands and create
an interest in the merchant marine in
all parts of the country" Ditchy told
the committee.
He outlined his plan in short point
ed Statements:
The Government spent $1,000 0OO.-
600 for the merchant marine" Ditchy
declared.
ITO mark of one-third Of this cost
would lavae the value of the ships,
shipyards. and other assets of the
Shipping Board at about 81 ,0oO, 900 900.
OO0."
This money has been spent by the
Government and raised by tue people
during the Liberty and Victory Loan
drives.
Organize a company or corpora
tion with a capital OF $4,000, 600, 900.
Turn the assets of the Shipping
a~I 90 ~
The company would issue stocks
or bonds against this asset and give
them to the service men.
The dividends on the stock would
be guaranteed as we are guarantee
ing the stockholders of the railroa Is
for six months. The stockholders OF
the roads did no particular service
for the Government as stockholders
during the war. IL you can guarau-
tee these men dividends for six
months and an implied guarantee fsr
two years in addition, j feel 1t woulo
be a logical principle to grant a siu,.
liar guarantee to service men In
business venture of equal possibili-
ties, for all time.
Would Make Profit
"The Ship Corporation would oper-
ate and make profit. The Shipping
Board now is receiving good re-
turn on its investment. / believe the
corporation will earn the guaranteed
profits from the start.
THE boys would have n security
guaranteed by the Government, obs
paying more interest than that which
could be carried by any bond, ard
the merchant fleet we acquired dur
ing the war would be kept In Amer
ican hands. The people would be
come interested In commerce and the
upbuilding and maintenance OF a
merchant marine.
Ditchy said the Shipping Board had
made @ per cent.
"Do YOU know that many of the
charges OF the Shipping Board were
placed against the War and Navy De-
partments?" Chairman Fordney asked.
mo, but the Shipping Board did
considerable transport for the army
and navy against that Ditchy an
swered.
Congressman Sherwood. Democrat,
Ohio. urged the adoption OF legisls-
ton providing a dollar day for the
term OF service for World War
veterans.
Congressman Strong. Republican,
Kansas, advocated the granting of a
bonus to "sll soldiers who need 1t "
you CANNOT EiNt ~ W ~i'
Prospects for the passage OF bond
issue to meet the cost OF granting
service men a bonus are held to be
more than a possibility by members
OF the House ways and Means Com
mtitee, having soldiers aid lesisla-
tion in charge.
"The interest and the sinking fund
charges on twenty year bond to
raise 81 200, 100000 would cost the
Government s127,oooooo the nrst
year and decrease each succeeding
year" Congressman Bowers. OF West
| Virginia said in discussing the
matter today. This amount IL the
lowest suggested - as necessary TO
grant bonus, other amounts could
bo calculated accordingly IL the
country cannot AFFORD to raise one
hundred and twenty-seven millions a
year to pay ex-soldiers a bonus. we
ara in a had way.