The New York herald., 1921-12-10
MERCHANT MARINE
TO RECEIVE U. S. AID
Remuneration to Ship Owners
May Be Based on Loss of
Preferential Levies.
WILL NOT BE A SUBSIDY
Plan to Be Worked Out to Give
Help Without Additional
Tax on Treasury.
Special Despatch TO TIE NEW YORK HERALD.
New York Herald Bureau.
Washinctnn. ID G. Dec o. (

Special Despatch 10 The NEw YORK HERALD
New York Herald Bureau.
Washington, ID. C.. Dec. ..
Administration proposals for aid to
the American merchant marine will be
based upon a process or remuneration
for American ship owners and ship
operators who promote American ship
ping. The form OF this remuneration
has not been fixed. but the amount
Will not be in excess of the amount
which the United States Treasury
would lose were the preferential rates
authorized by law for American ships
put into vogue.
An official announcement TO this ef-
feet was made by the White House
following the Cabinet meeting to-day
Care was taken to make II plain that
snip subsidy, both by name and as a
new policy. were to be avoided.
The Underwood tariff act, passed and
approved by Democratic administra-
tion. provided for preferential tariff
rates on all goods imported in American
bottoms. President Wilson held that
he could not invoke the preferential
rates because of treaties of trade and
conlty with other nations providing
against such action.
The Sixty-sixth Congress passed the
Jones shipping act. especially providing
for the abrogation OF any treaties which
interfered with the giving of preferen-
tial rates to American ships. The Ad-
ministration has found It inadvisable
to make this section of the act effec-
tive.
It Is now proposed to find the aggre-
gate of the duties which would have
been remitted. or would be RENTED If it
we're feasible to abrogate the treaties.
and then apply this sum directly to the
aid OF the American merchant marine.
BY such an arrangement the President
and his advisers believe effective aid
could be given the merchant marine
without an additional tax upon the
Treasury.
The method of distribution is not de-
termined. Many plans have been con-
sidered. One OF them provides for a
rebate of income or corporation taxes
to shipping companies In the amount
which would have been lost through
preferential tariff rates. In this manner
the reductions or savings I'm tariff duties
would go to American shipping instead
OF to the importers.
Shlrr 1g Board officials regard the
method of application as an administra-
tive matter. They will leave lewiston to
the E2-ecutive and the Cabinet without
recornylendation.
Chairman Lasker said to-day that as
s1on Commissioner Lissner. who Is
preparing data on the problem, has COM
pleted his task his report will be ak
anined by members of the Shipping
Board and officers of the Emergency
Fleet Corporation. 1t is probable that
practical ship operators. shippers and
shipbuilders will be called into con-
suitation in the event they have practi-
faA 70 nff
board will make its report to the Presi-
dent.
"As long as the matter Is IN the hands
OF the board It Will be held as conflden-
tial," added Mr. LasSer. I'VE are doing
this work at the request OF fine President
and he Is the one to give out any in
formation concerning it,"