Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-12-27
CALL FARLEY ON
. SUBS|D|ZING Of
ME- ERCHANT SHIPS
Marine Transportation Com
panieS' Officials and
Shipping Board Represen-
tatiVeS to Meet Jan. 5.
CBy the Assoclnted rress.l J

Washington, Dec. 26.--A final
conference of officials of leading
marine transportation companies
with the shipping boards special
subsidy committee has been called
for January 5 to pass upon a tenta-
tive plan formulated by the COM
mittee providing for the suhsidiz-
ing of the American merchant ma
rine to insure its maintenance.
The committee was formed to
study subsidies at the suggestion of
President Harding. The plan when
finally approved. will be submitted
to the president. who is expected to
adopt some of its provisions in q
message to congress.
What Plan Proposes.
Tn its present form which COM
mittee members stated was not Of
ficial and subject to changes, the
plan proposes both direct and in
direct aid, the former through di-
version of ten per cent of import
customs as bonus to American ship
operators and the latter through
establishment of revolving loan
fund of 100000.
other suggestions are understood
to include:
That the shipping board sell its
remaining fleet as rapidly as poss-
ible at prices not to exceed the pre-
vailing world market price.
Amendment of section eleven of
the merchant marine act to permit
of q merchant ma
,.ir - sl
900. under the administration of
the shipping board for making
loans at reasonable rates of inter
est, not to exceed five per cent per
annum, on first mortgages on
flag ships; this fund not
to be limited to shipping board
transactions but to be available for
all American ship oper-
ating organizations.
Income Tax Relief.
Income tax relief to create an
to shippers to use ships
flying the American flag, provid-
ing for a deduction from net in
come taxes payable on the basis Of
q small percentage of the freight
paid on American flag ships, orl
through greater allowance on de-
probation on ships.
Creation of a government marine
insurance, non-profit making cor
poration to insure its own ships and
to offer hull insurance at cost to
private American owners, backed
by a loan of $10,000,000.
Other Suggested Schemes.
Other suggested schemes include
the carrying in American ships of
at least so per cent of the immi
grants coming to this country: n
ship licensing system; amending
and revising of navigation laws;
through rates to Amer
ican flag vessels, the extension of
coastwise laws to insular possess
slons and the cooperation OF ship
ping board and navy to secure bet
ter compensation Of the merchant
marine officers and men of the ma
val reserve.
Believing that indirect aid will
not alone enable American ships to
operate successfully, in competition
with those of other nations, the
committee also has adopted tenta-
lively, the following methods of di-
rect assistance:
establishment of American ship
ping on an even competitive basis
with that of Great Britain by al
basic payment to American ship
operators to cover the general wage
and subsistence differential be-
tween the ships.
Rcmuncrative Fund.
IA. Ill III A,,tf 80 t,n
fund of about SS,-
900, 900 per annum for encouraging
construction Of mail carriers.
encouragement of special serv-
Ices and new routes through nomi- |
nal bare boat charters. operation
under managing operators con-
tract, until private capital is avail |
able, and through bids for the OPP
Grafton Of prescribed routes and
services.
Customs, receipts and tonnage
taxes form the main support of the
direct aid suggested. From the es-
timated income from customs re-
ceipts for 1929 of about $780,
poo, 900, 10 per cent. or S30,0o0,OO0
would be set aside as a special fund
for paying remuneration to Ameri- |
can ships on n basis to he adopted. |
this fund. there would |
be, the report states, tonnage tax
collected in American ports from |
Ill ships both American and for
sign; this tax estimated at $1,000 |
700 under present conditions would |
be raised to $4,000,000 If the pro-
posed tonnage dues under the pend