The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-07-19
By DAVID LAWRENCE.


which now are taking place is the drift
| is toward government subsidy of ships
| flying the American flag.
For years the subsidy idea has been
warmly espoused by shipping men, only to
be as bitterly denounced by members of
congress hailing from agricultural states.
Five years ago no American president
would have felt warranted in recommend
ing a subsidy TO any class of American
enterprise. But the war has brought
many changes. and it would not be sur
prising if before the end of the Harding
administration a ship subsidy bill, not
only was proposed, but actually put
through congress
Farmers Committed TO Subsidy.
1t is felt that the chief source of oppo-
sitiOn has vanished for the agricultural
element in congress has recently come
forward with a request for a subsidy
themselves. The proposal that a $780,
100000 appropriation be made by the
government to finance agricultural pro
iectS is looked upon by advocates, of the
ship subsidy as establishing a precedent
which agricultural senator's and members
of the house will not be able to ignore.
Another element in the situation which
has made ship subsidies seem nearer than
ever before is the recognition by the
farmers that 3hey must have export trade
in order to care for the surplus remaining
annually when the domestic market has
been satisfied. Shipping men say that big
ger than the tariff is the question of
freight rates and that it is possible for
foreign concerns to climb the American
tariff wall and because of the cheap trans
portation rates which foreign ships enjoy
III ho OIL fp
undersell in the American market.
In other words, European countries,
especially Great Britain. have always
realized that in the carrying trade lay
the biggest opportunity for profit. ire,
spective of what country actually pro
duced or manufactured the goods carried.
Wants Merchant Marine
While President Harding is anxious
that the government should get out of the
shipping business there is no doubt that
he is more interested in the moment in
seeing an American merchant marine
evolved out of the huge wreck of the war.
The hand of the government Will always
rest. in a regulatory sense. upon ships
flying the American flag and correspond
ingly it is now foreseen the American gov
eminent will see to it that the deficits in
the operation Of American ShipS in com
petition with foreign uags will be wiped
out by some form of subsidy given either
for the carrying of mails or the develop
ment of trade routes to parts of the
world hitherto untouched by the American
merchant marine.
The subsidy idea is actually being adj
vocated in administration quarters by
high officials on the ground that it would
be great economy over the present
methods of financing government ships
While the shipping board charters its
paid on the total freight receipts. whether
the boat actually loses or makes money
This, it is contended by government ex-
perS. puts premium on inefficiency. for
the temptation has been to run the boats
at any cost because the greater the
freight income the larger the commissions
to the concern operating the ships.
viii Stop Letting Ships.
Thus the government is at present not
only furnishing a subsidy to private
shipping concerns. but is also furnishing
the boats besides. All this has entered
into the huge losses of the shipping board
and it Is anticipated that irrespective of
the ultimate policy adopted on ship sub
sides Il halt will be called on this prac-
tice by the new shipping board. As proof
OF the extent to which private concerns
have felt it wise to enter into the operat-
ing side under government charter off
Gals point out that whereas there were
only 10 or II shipping companies before
the war there are now 200 American firms
IN the shipping business.
OF course the LaFoIIette seaman's act
always has been cited as an insuperabe
obstacle to American competition with
foreign flags, but it is realized that there
Is little chance of seeing repeal of that
act and the government is compelled in
effect to make up the deficits caused by
h9FTt Il,
American seamen as compared with SINH
lar labor done on foreign ships.
To Change Labor Rules.
There is one point, however. on which
1t Is not likely that our government will
DE content to go along as in the past 1t
involves the question of paying for eight
hours of continuous work to seamen.
high wages can still be paid. government
oinclais say, and present standards main
tanned provided the economic waste in
the eight-hour law is removed. But
sailor who, on some day may have only
two hours work and can spend the re-
malnder of the day loafing. must either
be given eight hours continuous work or
be paid for his loafing time.
Inc same principle has been under fire
IN the controversies which the railroad
owners and coal operators have had i'm
recent months with their labor While
however, the railroad employee may work
only part of the day. he actually loses
considerable time getting to and from his
home. sailor, on the other hand, re-
CARDS the ship as his home and INDUCES
IN rest or recreation when off duty.
1t Is probable that if an adjustment
can be made with labor on this phase of
the elght-hour problem there will be little
difficulty in shaping policy that will
continue the present high rate of wages
g American seamen and yet enable
American shipping companies, aided BIZ
government subsidy, to compete effec-
lively with FOREIGN Sims In carrying the