Evening star., 1921-12-27
SHIP MEN OPASS
ON SUBSIDY PLAN
Last of Conferences With
Shipping Board Committee
Called for January 5.

The last of a series of conferences
of officials of leading marine trans
portation companies with the Ship
ping Boards special subsidy com
mittee has been called for January 3
to pass upon Il tentative plan formu-
lated by the committee providing for
substituting of the American mer-
chant marine, to insure it's main
tenance.
The committee was formed to
study the broad question of subsidies
at the suggestion of PRESIDENT Hard
ing. who made special reference to
this method of assisting American
ship owners in his message at the
last Congress. The plan. when finally
approved. will be submitted to the
President, who is expected to adopt
some of its provisions i'll message
to Congress.
In it's present form, which members
of the committee said today was not
official and is subject to changes the
plan proposed both direct and in
direct aid, the former through di-
version and the latter through es-
tablishment of a revolving loan fund
of S100.00O.000.
Other Suggestions in Plan.
Other suggestions now comprised in
the plan are understood to include:
That the Shipping Board sell its re
naming fleet as rapidly as possible at
prices not to exceed the prevailing
world market prices for similar tom
mage.
Amendment of section , of the mSr-
chant marine act to permit the estab-
liShment OF a merchant marine loan
fund of about S100.000.000 under the
administration of the Shipping Board
for the purpose OF making loans at
reasonable rates of interest. not to
exceed per cent per annum, on
first mortgages on American nag
ships: this fund not to be limited to
Shipping Board transactions, but TO
be available for financing of all
American ship operating ofgani-
. cations.
Income tax relief to create an in
centive to shippers to use ships Hylng
the American flag, providing for re-
auction from net income tax payable
on the basis of q small percentage OF
the freight paid on American flag
ships. or through a greater allowance
on depreciation on ships.
Marine Insurance Proposed.
Creation of government marine
insurance. non-prott making corpora
tion to insure its own ships ana TO
offer hull Insurance at cost to private
American owners backed by loan OF
$780, 600, ,000. Other suggested schemes
include the carrying in American n
ships of at least fifty per cent of the
imm grants coming TO this country. a
ship licensing system; amending anG
revising navigation laws: pTeieren-
fial through rates to American nag
vessels, the extension of coastWise
laws to our insular possessions; and
the cooperation of Shipping Board
and Navy to secure better compen-
sation of the merchant marine officers
and men of the naval reserve.
Believing that indirect aid Will not
alone enable American ships TO oper-
ate successfully in competition with
those of others. the committee also
has adopted tentatively the following
methods of direct assistance:
Esta blishment of American shipping
on an even competitive basis with
that of Great Britain. by basic pay
ment to merican ship operators to
cover the general wage and subsist-
ence differentiai between the ships.
Making available a portion of the
remunerative fund of about SS.OO0.000
per annum for encouraging construc-
tion of mail carriers.
Encouragement of special services
and new routes through nominal bare
boat charters. operation under man
aging operators contract until prl-
vate capital is available, and through
bids for the operation of prescribed
routes and services.
Customs receipts and tonnage taxes
form the main support OF the
direct aid suggested from the eSti-
mated income from customs recelpts
for 1929 about $500, 100000. Ten
per cent or $30O00.00O. would be set
aside as a special fund for paying
remuneration to American ships on a
basis to be adopted. Augmentlng TINS
fund there would be, the report states.
tonnage taxes collected in American
ports from all ships. both American
and foreign. This tax. estimated at
S2,000.000 under present conditions,
would be raised to S4.000,O00 if the
proposed tonnage dues under the
Dending measure are made effective.