Evening star., 1921-12-03
PRESIDENT TO ASK
SHIP SUBSIDY PLAN
Recommendation Will Be
Made to Congress in Spe-
cial Message in January.

Establishment Of a ship subsidy policy
by the United States as a means OF
aiding the merchant marine and the
ship building industries Of this coun-
try will be recommended in a special
message President Harding will send to
Congress early in January.
Although there have been intimations
recently TO this effect, it has only
lately become known as fact at the
White House. The message will contain
definite recommendations and will take
up the entire subject of the American
merchant marine and methods of in
creasing it's utility and assuring its
permanence. Careful study of the sub
Ject is now being made preparatory to
the drafting of the Legislation
Ship OmciaIs Give Aid.
Chairman Lasker of the Shipping
Board and other officials directly con-
cerned with the marine situation have
given their assistance in formulating
the details OF subsidy proposals. The
amount of money necessary, IL was said.
has not yet been determined One OF
the obstacles toward preferential treat-
ment OF American vessels by the gov
ernment lies in a series OF treaties ne
gotiated with other maritime nations
merchant marine act OF 1919 contained
mandatory instructions that all such
treaties be abrogated, Pre- sident Hard
ing is expected TO inform Congress that
II IS impossible 10 enforce that pro-
vision Of the law. As an alternative to
this it is expected that the subsidy
policy will be advanced
Chairman Lasker states that the
Shipping Board is making special
study OF ship subsidies. Among the
ll.nG nG.fsf.
cial committee Of the board are ship
ping routes. types of vessels. revenue.
wages, Immigration, operation, inSur-
ance and labor. with reference to the
bearing of each upon the amount and
method of applying subsidy.
Board Appointed.
The board appointed by Mr. I.asker
to make the subsidy study includes
DIR. Emery r. Johnson, dean of The
Wharton School. University Of Penn
sylvania: Winthrop l.. Marvin, vice
president of the American Steamship
Owners Association. Rear Admirals
II. II. Rousseau and Clarence :. Will
liams, Daniel II. Cox. a naval architect.
formerly of the Shipping Board. and
Grovenor NJ. Jones, formerly Of the
Department of Commerce.
Surtax provisions of the existing
revenue law imposing maximum leyies
of so per cent on incomes are expected
to be the subject of comment in presi-
dent Harding's message to the new
Congress convening December ).
President Harding PRIOR to passage of
the act strongly recommended that
the maximum SurtaN be reduced to
40 per cent as compromise between
the House and Senate suggestions.
Tariff May he Discussed.
Tariff matters, il is reiterated may
be expected to occupy a prominent
place in the communication. In con-
nection with this subject one recon-
mendation which has been forecast
would ask that the President be given
discretionary powers in applying the
American valuation basis TO meet
specific import situations which re-
quired special treatment
1t was the belief in best informed
circles that Mr.. Harding thought this
could best be accomplished by author
izing the greatest possible fleNibiiity
in the use of this basis of afiixing
duties.
The Wood Forbes report on the
Philippines probably Will be referred
to by President Harding, but it is said
he will not reinforce its recommends
tion at this time with the specific re-
quest that Congress modify the legis-
latiye powers now possessed by th.
Philippine government.