The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-12-27
FINAL CONFERENCE
ON SHIPPING CALLED
VIII Pass on Plan Providing for Sub
sidizina Of American Merchant
Marine.
az The AssoeIated 80

I ~ @AArAAA-NNF A~Ns ~ GA AAkAtAA
i conference or officials OF leading ma
/ rine transportation companies with
i the. shipping boards special subsidy
+ committee has been called for Jan.
/ TO pass upon a tentative plan formu-
/ lated by the committee providing for
] the substituting of the American mer-
chant marine to insure its mainte-
nance
1 The committee has formed to study
/ the boards question Of subsidies at
the suggestion Of President Harding.
who made special reference TO this
method of assisting American ship
owners in his message at the last con-
gress. The plan, when finally APP
proved, win be submitted to President
Harding, who is expected to adapt
some of its provisions in message
to congress.
In it's present form which, members
Of the committee emphatically stated
today. was not official and is subject
to changes in any one of its features.
the plan proposes both direct and in
direct aid the former through diver
sion and the latter through establish
iment Of a revolving loan fund of $780,
10000
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 price for similar tom
mage.
Amendment Of section IL OF the mer-
chant marine act to permit the estab-
lishment of merchant marine loan
fund of about 100000 under the adj
ministration Of the shipping board for
the purpose Of making loans at rea-
sonable rates of interest not to exceed
5 per cent per annum, on first mort
gage on American nag ships; this fund
not to be limited to- shipping board
| transactions but to be available for
financing of all American ship operat-
ing organizations
Income tax to create an incentive Il
shippers to use ships flying the Amer
lean flag, providing for a reduction
from net income tax payable on tn,
basis Of n small percentage of the
freight paid on American flag ships,
through a greater allowance on depre-
citation ON ships.
Creation Of a government marine in
surance, noh-profit making corporation
to insure its own ships and to offe
! hull insurance at cost to private
american owners. backed by loan O
300, 600 Other suggested scheme
include the carrying IN American ships
Of at least so per cent Of the irn7n!-
grants coming to this country, a ship
licensing system, amending and revis-
ing of navigation laws. preferentiai
through rates to American flag vessels.
/ the extension of coastwise laws to our
insular possessions; and the coopera-
ton of shipping. board and navy to
secure better compensation of the mer-
! chant marine officers and men Of the
naval reserve,
Believing that indirect aid viii not
alone enable American ships to operate
successfully IN competition with those
Of others, the committee also has
adopted tentatively the following
methods Of direct assistance:
Establishment of American shipping
on an even competitive basis with that
Of Great Britain by a basis payment
to American ship operators to cover
the general wage and subsistence DIFF
ferential between the ships
Making available a portion of the
remunerative fund Of about $SO00, 600
per annum for encouraging construc-
ton Of mail carriers.
Encoura cement Of special services
and new routes through nominal bare
boat charters operating under manag
ing operators contract until private
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 estimated in
come from customs receipts for 1922
1923 about $500 100000, 10 per cent, or
$50, 600 600, would be set aside as
special fund for paying remuneration
TO American ships on a basis to be
adopted Augmenting this fund there
would be, the report states, tonnage
taxes collected in American ports
from all ships. both American and for
!eign, tax estimated at s2,000.o00 under
present conditions would be raised to
100000 If the proposed tonnage dues
under the pending measure are made
effective