The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-12-28
Plan MADE FOR
MERCHANT MARINE
OFFICIALS OF TRANSPORTATION
COMPANIES TO MEET SUBJ
SIDY COMMITTEE JANUARY S.
FINAL APPROVAL FROM THE
WHITE HOUSE

1eIeHCe VI olHCidlS "a AcooAAS AAoAAAAS
transportation companies with the
shipping boards special subsidy COM
mittee has been called for January 5
to pass upon a tentative plan formu-
lated by the committee providing for
the subsidizing of the American
merchant marine to insure its main
tenance. The committee was formed
to study the 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
congress. The plan, when finally ap-
proved, will be submitted to Presi-
, dent Harding, who is expected to
adopt come of its provisions in mes
sage to congress.
In its present form which, mem
bers of the committee emphatically
stated today, was not official and is
subject to changes in any one Of its
features, the plan proposes both di-
rect and indirect aid, the former
through diversion, and the. latter
through establishment of revolving
loan fund of s1O0,oOo,oo0.
Other suggestions now comprised
-in-the plan are understood to in
clude: @..
That the shipping board sell its re-
manning fleet as rapidly as possible
at prices not exceeding the prevail
ing world market price for similar
tonnage.
Amendment of Section II of the
merchant marine act to permit the
establishment of a merchant marine
loan fund of about $1O0,OOO,OOO un-
der the administration of the ship
ping, board for the purpose of max
ing loans at reasonable rates Of in
terest, not to exceed S per cent. per
annum, on first mortgages on Amer
lean flagships; this fund not to be
b limited to shipping board transactions
but to be available for financing of
all~American ship operating oraani-
cations.
Income tax relief to create an in
centive to shippers to use ships fly
ing the American flag, providing for
reduction from net income tax pay
able on the basis of a shall percent
age of the freight paid on American
flagships, or through greater allow
>,-ance on depreciation on ships.
. Creation of a government marine
insurance, non-profit making corpor-
alton to insure its own ships and to
offer hull insurance at cost to pri-
vate American owners backed by a
loan of 100000, 900. Other sugges-
tions include the carrying in Ameri-
can ships of at least so per cent. of
the immigrants coming to this coun-
try; ship licensing system; amend
ing and revising of navigation laws;
preferential through rates to Ameri-
can flag vessels; the extension of
coastwise laws to our insular posses
sions; and the cooperation Of ship
ping board and navy to secure bet
ter compensation of the merchant
marine officers and men of the naval
reserve.
Believing that indirect aid will not
alone enable American ships to op-
crate successfully in competition with
those of others, the committee also
had adopted tentatively the follow
ing methods of direct assistance:
Establishment of American ship
ping on an even competitive basis
with that of Great Britain by basic
payment. to American ship operators
to cover the general wage and subsis-
tence differential between the ships.
Making available a portion of the
remunerative fund of about $8,000,-
900 per annum for encouraging con-
struction of mail carriers
Encouragement of special services
and new routes through nominal bare
boat charters operating under man
aging operators contract until pri-
vate capital is aviiable, and through