Evening star., 1921-07-18
FEDERAL SUBSIDY
OF U. S. SHIPS seen
Former Opposition to Plan
Declared Vanishing-BiII
Expected Soon.
BY DAVID LAWRENCE.

ny DAVID Law hENSE'
The revival of the Emergency Fleet
Corporation has raised some impor-
tant question as to the future OF the
American merchant marine. Whlle
President Harding and his advisers
have not yet reached a definite pro-
gram or policy, the signihcant 'hihs
about the informal discussions whlch
now are taking place is the DRIFT TO-
ward government subsidy of ships
flying the American flag.
For years the subsidy idea has oeen
warmly espoused by snipplns s"tn,
only to be as bitterly denounced by
members of Congress halllnS from
agricultural states. Five wears ago no
American President would nave ltl'
warranted in recommending sun
sidy to any class OF Americai 1onv
prise. But the war has brought many
changes, and it would not be SurprlS
ing if before the end of the HARDING
administration ship subsidy phi not
only was proposed, but actuaAS put
through Congress.
Opposition Vanishes.
1t Is felt that the chief source or
opposition has vanished, for the agri-
cultural element in Congress have re-
Gently come forward with request
for a subsidy themselves.
The proposal that hundred-million-
dollar appropriation be made by the
government to finance agricultural
projects is looked upon by advocates
Of the ship subsidy as establishing
precedent which agricultural senators
and members of the House will not
be able to ignore.
Another element In the nsituatio
which has made ship subsidies seem
nearer than ever before is the recos
milton by the farmers that they must
have export trade in order to care Tor
the surplus remaining annually when
tho domestic market has been satis-
fed. Shipping men say that Digger
freight rates and that it is possible
for foreign concerns to climb the
American tariff wall. and. because OF
the cheap transportation rates "hlch
foreign ships enjoy. European con
Germs will still be able to underseii III
the American market.
PROFIT in Carrying Trade.
Tn o+her words European countries.
especially Great Britain. have always
realized that in the carrying trade lay
the biggest opportunities Tor pront,
Irrespective of what country actually
produced or manufactured the gooos
carried.
While President Harding is anxious
that the government should get out OF
the shipping business. there IS no
doubt that he is more interested TOT
the moment in seeing an American
merchant marine evolved out or the
huge wreck of the war. The hand OF
the government will always rest, IN
regulatory sense, upon Shlps HylnS the
American flag, and correspondlngly, IL
is now foreseen, the american n, soxerH, oits IN
ment will see to it that the dement's IN
the operation of American SHIPS IN
competition with foreign flags Will pc
wiped out by some form OF SUBSIDY,
given either for the carrying OF mails
Or the development of trade routes to
narts of the world hitherto untouched
by the American merchant marine.
The subsidy idea is actually being
advocated in administration quarters
by high officials on the ground that II
twould be great eeononiS oe .rn e
ment ships. While the Shipping Board
charters its boats to private concerns.
a commission Is paid on the tolal
freight receipts, whether the boat
actually loses or makes money. inls'
n is contended by government eX-
experts, puts a premium on lnefl-
cheney, for the temptation has been to
run the boats at any cost. because
greater the freight income the larger
the commissions to the concern operat-
ing the ships.
Sh1D SOmpdhlcB 1HCECdScs
Thus the government is at present
rot only furnishing a subsidy to prl-
yate shipping concerns, but also is
Furnishing the boats besides. All this
has entered into the huge losses or the
Shipping Beard, and 1t is anticipated
that Irrespective of the ultimate pol
lev adopted on ship subsidies halt
will be called on this practice by the
new Shipping Board. AS proof of the
extent to which private concerns have
felt it wise to enter into the operating
side under government charter, Off
cials point out that whereas there
were only ten or twelve shipping COM
pantes before the war. there are now
200 American firms in the shipping
business.
OF course, the La Toilette seamen's
act always has been cited as an in
superable obstacle to American COM
petition with foreign flags. but it is
realized that there is little chance of
seeing a repeal of that act. and the
government is compelled. in effect.
to make up the deficits caused by the
high wages which must be paid to
American seamen as compared with
similar labor done on foreign ships.
Eight-HOur-Day Problem.
There Is one point. however. on
which 1T is not likely that our govern
ment will be content to go along as
in the past. 1t involves the question
of paying for eight hours of con-
tinuous work to seamen. High wages
can still be paid, government officials
say, and present standards maintalS-
ed, provided the economic waste in
the eight-hour law is removed. But
Q sailor who, on some days may have
only two hours work and can spend
the remainder of the day loafing must
either be given eight hours con-
tinuous work or be paid for his loaf
ing time.
The same principle has been under
fire in the controversies which the
railroad owners and coal optrators
have had in recent months with their
labor. While, however, the railroad
employe may work only a part of the
day, he actually loses considerable
time getting to and from his home
A sailor. on the other hand. regards
the ship as his home and INDUCES in
rest or recreation when off duty.
1t is probable that if an adjust
ment can be made with labor on this
phase Of the eight hour problem, there
will be little difficulty in shaping
policy that will continue the present
high rate of wages to American sea-
men and yet enable American shipping
companies. aided by government sub
sidy, to compete effectively with for
eign ships in carrying the trade of the
World. The trend of the Harding ad-
ministration is toward ship subsidy
as a means of perpetuating the mer-
chant marine which the war happen
ed to beQueath to the American people.
Copyright. 1871
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