The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-07-24
IS SUBSIDY
'CRANTEDBY
JONES ACT?
Doesn't Appropriate Funds
Directly, But II Certinly
Does Indirectly
by HARRY D. HUNT

umph for the subsidy hunters" IL tho
phrase which one authority on COM
mercial and financial matters de.
scrihes the merchant marine act Of
1890. rushed thru congress In the
closing hours OF the last session.
Wherein Is the subsidy How Is II
erNfedg How much does Il amount
to-
Congressman George w. Edmonds,
Of Pcnnsylvsnia, ranking member
Of the house committee on merchant
maripc. who explained the bill TO the
house on presenting II for passage.
said:
There Is absolutely nothing In
III An except the postal subvention
that could in any way be construed
TO be subsidy"
Which Is right-the commercial
financial expert or the legislator
JUST WHAT
IS A SUBSIDY
II by subsidy" Is meant n direct
appropriation Of money from the pub
lie treasury. then Edmonds. perhaps.
- correct.
n. however. -suhsidy- Includes
grants OF special advantages. favors.
or Of money diverted from the pub
Nc treasury which otherwise would
reach there, then the bill UNQUEs-
rIoNABLY DOES GRANT suBsI.
DIES.
For instance
Uncle Sans revenue laws provide
that individuals and corporations
must pay into the United States
treasury certain percentage OF
their income and excess profits.
The merchant marine act. howcv-
~. provides that individuals or cor
/ porations owning or operating ships
n under United states registry may de-
I duct the net earnings OF any vessels
operated In foreign trade from The
amount OF income or profits subject
70 federal taxes. provided such earn
tnxs are set aside into a building
fund or are used In the construction
Of new vessels In American ship
yards
Further. any person or corporation
owning vessels, who may sell any
vessel at profit within the next ten
pears. viii be relieved OF federal
taxes on such profits n they are rein
vested IN new shipping built in Amer
tcan shipyards.
Such money. OF course, II removed
from the public treasury as actually
= tho collected and feapportionat In
: direct subsidy.
ANOTHER BILL
THE PUBLIC PAYS
I Another provision which aids ship
a ~ ~
public II section -. permitting the
king OF discriminatory railroad
kecs in favor Of shipments on Amer
: N1cAn vessclx
Such diffcrensiai rates assist the
fboat lines, Mt the expense OF the
| American Railroads. And reduced
Income to the railroads means only
more and more freight rate advances
which the general public must meet
A construction loan fund. amount
ing In five years TO si25 900. 900. IL
20 be established by the shipping
hoard from the proceeds OF weasel
sales. from which shipping interests
may finance new construction In
, American yards. Loans from this
fund are authorized up to two thirds
of the cost Of the boats so financed.
PAYMENT TERMS
PIE FOR INTERESTS
The terms and conditions under
which vessels built and owned by
the government may be purchased
by private interests in themselves
may be so advantageous as 20
amount virtually to a subsidy
OF course other nations under.
write and subsidize their own vessels-
II England. for instance. gives spe-
eiai protection and advantages 10 her
shipping which would enable II 10
. monopolize the ocean freights Of the
world. how far IL the United States
justified in attempting to equalize
conditions even at public expense?
SENATOR JONES
DEFENDS EVERY CLAUSE
Senator Jones OF Washington.
! chairman of the senate commerce
comnnitfee and chief sponsor for the
merchant marine act. has no apollo
G1es to make for any Of its provisions.
The conditions against which an
American merchant marine must
compete. he declares. justify every
provision in the act.
''It Ia necessary" he declares. "fox
i proper growth OF our foreign and
domestic commerce. that the United
States have a merchant marine sur.
ficient TO carry the greater portion
Of its commerce. And II Is the policy
Of the United States 10 do whatever
may be necessary TO develop and en-.
Courage the maintenance OF such
merchant marine"