Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1921-12-27
FAVOR SUBSIDY
To ENCOURAGE
j. 5. SHIPPING
Leading Marine Officials Will
Meet in January to Talk
Over Merchant Marine

WASHINGTON, Dec.N 26.-. A final
conference OF officials of leading mar
inc transportation companies with the
shipping boards special subsidy COM
mittee has been called for January
8, to pass upon tentative plan form
ulated by the committee providing for
the substituting of the American mer-
chant marine to insure its mainten-
ance.
The committee was formed to study
subsidies at the suggestion of Presi-
dent Harding. The plan, when final
ly approved, will be submitted to the
president, who is expected to adopt
some of its provisions in a message
to congress.
In its present form. which commit
tee members stated was not official
and subject to changes, the plan pro-
poses both direct and indirect aid,
the former through diversion of 10
per cent of import customs as bonus
to American ship operators, and the
latter through establishment of a re-
volving loan fund of $100.00O,000.
Other suggestions
Other suggestions 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.
Amendment of section II of the
merchant marine act to permit estab-
lishment of a merchant marine loan
fund of about $1O0.000,OOO under the
administration of the shipping board |
for making loans at reasonable rates
of interest, not to exceed per cent
per annum, on first mortgages on
American flag ships; this fund not to |
be limited to shipping board transac-
tions, but to be available for financ- !
ing American flag vessels, providing
a deduction from net income taxes, |
payable on the basis of a small per-
centage of the freight paid on Amer
lean flag ships, or through a greater
allowance on depreciation of ships.
Plan Federal Insurance l7'or.sI
Creation of a government marine
insurance, non-profit making corpor-
alton to insure its own ships, and to
offer hull insurance at cost to private
American owners, backed by a loan of
100000 900.
Other suggested schemes include
the carrying in American ships of at
least so per cent of the immigrants
coming to this country; a shin licens-
ing, system: amending and revising
or navigation laws; preferential
through rates to American flag yes,
sells, the extension of scoastwise laws
TO fnsllar possessions. and the CO.
operation of shipping board and navy
70 secure better compensation 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 other nations, the committee
also has adopted tentatively the fol-
lowing methods of direct assistance
establishment of American ship
ping on an even competitive basis
with that Of Great Britain by a basic
payment to American shin Operators
10 cover the general wage and sinh
sistence differential between the
ships.
Want Appropriation
MAKING available portion of the
remunerative fund of about sS. O0o Ooo
per annum for encouraging construc-
lion OF mail carriers.
encouragement of special services
ana new routes through nominal bare
BOAT charters, operation under man
aging operators contract, until mi.
'ate capital is available. and through
'ids for the operation of prescribed
'outes and services
customs receipts and tonnage
axes form the main support OF the
iirect aid suggested. From the es.
mated income from customs receints
or 1928, about $500 200. 600. ten
Der cent. or $30.0O0,OO0 would he SET
ASIDE FOR a special fund for paying
enumeration to American ships on
'asis to be adopted. Augmentinp this
una, there would be, the report
tates, tonnage tax collected in Am ]
'rican ports from all ships both Amer
can and foreign; this tax estimated
It $2,OOO.000 under present conditions
would be raised to 100000 if the
tonnage dues, under the
measure, are made effective.