New-York tribune., 1921-03-11
New Policy ON
Ocean Mail to
Aid Shipping 9
Harding Administration Is
Looked To to Put Into
Effect Rates That Will
Assist American Vessels
Money Lost ON Old Scale
United States Behind Other
Countries in Payments for
Carrying Postal Matter

Ab y A>S- OSaNA 1t1dAttE
A vigorous ocean mail policy which
is to come into effect with the new
Administration IS expected to be Of
material aid to American shinpiup. On.
by one the pending mail subsidy con-
tracts made under the law of 1891 are
going to De abandoned and a wholly
new procedure introduced. under which
the Shipping Board and the Postmaster
General will cooperate to establish the
postal routes and fix the compensa-
ton to be paid, subject to the making
Of appropriations by Congress.
ut was full time fer departure
in the ocean mail policy of the United
States" says Winthrop L. Marvin. vice
president and general manager of the
American Steamship Owners Associ-
alton. IN statement appearing in The
Marine Journal. The law of 1891 long
ago became obsolete and it's rates of
pay entirely inadequate. In fact, these
rates never were adequate
When ths law was originally en-
acted, thirty years ago, as the outcon, e
Of an earnest campaign for the en-
coUrsgement OF the American merchant
marine, the measure, which had passed
the Senate by large majority, was
held up IN the House of Representa-
tives by group Of statesmen from
the Germanlzed section of the North
west, who succeeded in slashing the
rates u mpensation to point
which, II was thought then, would make
the law lnnocuous to Germany and
worthless 70 America"
Rates Long inadequate
While the law, in practice, did not
prove as nad as these interests ex-
pecred, some lines, after trial Of the
plan gave up their contracts. Efforts
to Increase the rates under the Nc
Kinley, Roosevelt and Taft admiristra-
lions failed by narrow margins in Con-
gress. Under Section of the mer-
chant marine act of 1920, however, the
Shipping Board is directed to deter
mine what steamship lines should be
established TO provide an adequate
ocean mail service. Section II sets
years from 1920 sum not exceeding
sz5,O0o, GOO, to encourage the construc-
ton OF vessels suitable for these
services.
According to Section "a Of the act,
ali mails of the United States, carried
on vessels, shall, if practicable, be
carried on American built vessels doc
umented under the laws of the United
States. The Shipping Board and the
Postmaster General are directed to
determine the rate Of compensation
paid for such service and the Postmas-
ter Genera. is authorized to enter into
contracts for the carrying of mail at
the rates specified.
The provisions of the new law, Mr..
Marvin says, clearly contemplate a sub
stantial increase in the mai-carryl IN g
payments TO American ships. Some
companies, he points out. have lost
money on carrying mails because Of the
increased space necessitated for parcel
post matter without any addition to the
rates OF pay.
Government Has Pro6ted
For several years" he adds, "the
meager postal subsidies paid to Ameri-
can vessels under contract have cost
the government absolutely nothing.
Indeed. these contracts which were IN
fer7ed 10 encourage American overseas
shipping have been an actual source OF
aGdeC revenue TO the Post Orlce Depart
menc. Mr. Burieson in his annual re-
port for 1920 frankly boasts that the
contract service (by American steam
ships cost s544.92476 less than if the
conveying steamers had not been un-
der contract This is illumlnatln
evidence Of the liberality of the Burle-
son administration TO the American
merchant marine
Under the new Administration and
by force of the mandatory provisions
Of the merchant marine act the penny
wise, pound-foolish policy that has
characterized the handling Of our
scean mail ships will be abandoned
and very different. far-reaching and
benefcent course will be adopted by
cooperative action of the Postoffice
Possibilities Of the new legislation IN
this direction have already been
brought TO the attention of the Presl-
dent, and the country can be assured
OF his powerful encouragement The
United States ocean mail service ought
rightfully to be the most efficient serv-
ice in the world, instead of the
starved skeleton it has been.
Q. s. Behind Rest of the World
IN 1903, FIVE years before the out
break of the World War, Commis
ssioner Chamberlain of the Bureau Of
Navigation Of the Department of Com
merce published a summary Of the
ocean mail and other subsidies then
oe.ng granted by the various nations.
These expenditures in the double
AID OF shipping and commerce then
sggregated S45,224.0 900 a year. of which
ssoos goo was given by Great Britain,
s10'4z3,ooo by France, s6,413,000 by
aapan and s3,872,000 by Italy. Mail
subsidies In all countries were the
principal form of expenditure and the
tne only form in the United States,
Which M in 1908 was granting only ST.
$4,000 OF this purpose, or some
Snat less than the 1851 900 paid by