New-York tribune., 1921-12-25
Subsidy Plans
For i. S. Ships
ApprovedHere
500. 600, 900 Loan Fund,
$34, 100000 Direct Re-
snuncration Proposed to
Elualize Operating Cost

Plans for oirsetting The differences
il the cost Of operation between Amer
scsn and foreign shipping, especially
British, through a comprehensive sys-
tenn of direct and indirect subsidies,
were received with approval by steam
ship men yesterday. Az outlined in
reports from Washington, the chief
points OF the report by the special COM
mittee to the Shipping Board include
recommendations for payments aggre-
eating $S4,000,0 900 for the fiscal year
1922-'2S and the creation o< a construc-
tion loan fund of 100000 to be
made available at not more than 5 per
cent interest.
While the suggestions of the special
committee are subject to change and
have not yet been Endorsed by the
Shipping Board, they are regarded as
4 good indication of the trend of sent-
n1ent in Administration circles In
large measure the views of the special
committee coincide with the report
drafted by the American Steamship
Owners Association, and also that now
under consideration by the Merchant
Marine Joint Committee, consisting of
owners, builders and operators.
Winthrop l.. Marvin, vice president
and general manager OF the Steamship
Owners Association, said yesterday
that the joint committee will meet
with the Shipping BOARD in Washing
ton on January 5. This will follow the
conference of the committee here on
Wednesday, when the final plan of ma
tlonai policies will be formulated. The
board Is expected TO complete its re-
port to the President before Janu-
ary 10.
The tentative report of the special
committee is document of about three
thousand words, covering all phases of
merchant marine activities and giving
in detail means for offsetting the 1.,ist-
ing handicaps on American shipping.
Its principal points are summarized
briefly as follows:
Direct payment to steamship conpan,es
OF 40 per cent Of the customs collections
on imports. II Is estimated that for the
fiscal year 1922S23 the customs receipts
, rill amount to about $500. .ooo. .ooo so that
Would soSnns rSis wo
- augmented by s4,ooo,ooo IN tonnage
cues cues collected from all vessels entering
Sale Of government owned ships as soon
as possible at prevailing world market
Establishment of a s1oo. .ooo. 900 merchant
marine loan fund under the administra-
t!on of the Shipping Board similar to the
mortgages on American flag ships
Granting OF reduction from Federal
income taxes on the basis of small per-
and importers on American flag vessels and
also greater allowance for depreciation
on saips Tor income tax purposes
goes and hulls of American ships ut cost
II lower rates can not be obtained from
u-ri tara ha Stov,
be financed from a fund of $40, 600. 900 ad-
vanced by the government.
Regulations TO insure the carrying by
American ships OF at least SO per cent Of the
immigration to this country.
Revision of navig alton laws.
preferential export and import railroad
rates applying to shipments carried on
American vessels.
Additional compensation for officers and
crews on the merchant marine as naval
reservists
Regulation of foreign vessels entering
system.
Several methods of computing the
diferential against American ships and
OF applying the aid to shipping COM
panies are suggested by the special
committee. These include:
ta) The average differential based
on percentage Of the pay roll of the
zens only; (b) average differential per
gross ton of vessel in dollars; (c) pay
ment based on q combination of speed
tonnage and distance covered.
The principal argument in favor of
government assistance is that the
United States should have an adequate
naval reserve and should also possess
q full complement Of naval auxiliaries.
The committee recommends greater
payment for the carriage of mails in
American ships, as provided in the
Jones act, which is estimated to cost
About 81 An0 00n I. Haas