Arizona republican., 1921-12-27
SHIPPING BOARD MAY SUBSIDIZE
 MERCHANT SHIPS
SPECIAL COMMITTEE DRAFTS PLAN FOR SUBSIDIZING MERCHANT MA
 RINE TO TRANSPORTATION COM
 PANIES TO INSURE MAINTENANCE
IRepubliean A. p. Leased Wirel


 WASHINGTON. Dec. 26.-A final conference of officials of leading marine transportation companies with the shipping boards special sub xidy committee has been called for January to pass upon a tentative plan formulated by the committee providing for the substituting of the American merchant marine to insure its maintenance.
 The committee was formed to study subsidies at the suggestion of Presi- dent Harding. The plan when finally approved will be submitted to the president. who is expected to adapt some of its provisions in a message 70 congress.
 In it's 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- VoiNinE loan fund of $100,o00, 900. Other suggestions are understood to include:
 That the shipping board sell its remaining fleet as rapidly as possi- ele at prices not to exceed the pre- xsiiing world market price.
 Amendment of section II of the mechant marine act to permit estab- MShment of a merchant marine loan fund of about s100, ,0o0, 900 under the administration of the shipping board 7 Tor making loans at reasonable rates ,f interest, not to exceed per cent per annunl, on first mortgages on American flag ships: this fund not 10 be limited to shipping board trans actions. but to be available for financ- ing all American ship operating or ganszations.
 Income tax relief to create an in oentive to shippers to use ships fly ing the American flag providing for B deduction from net income taxes payable on the basis of a small per rentage of freight paid on American flag ships, or through a greater al- sowance on depreciation in ships.
 Creation of a government marine Insurance, non profit making corpo- ration to insure its own ships and to offer hull insurance at cost to private American owners. backed by a loan of slo so0.oo0.
 Other suggested schemes include the carrying in American ships ot at least 50 per cent of the immigrants coming to this country: ship licens- ng system; amending and revising ax navigation laws; preferential through rates to American flag yes sels. the extension of coastwise laws 10 lnsular possessions, and the co operation of shipping board and navy 10 secure better compensation of th' merchant marine officers and men O. the naval reserve.
 Believing that indirect aid will no alone enable American ships to op erate successfully, in competition with those Of other nations, the com rnittee also has adopted, tentatively the following methods of direct as sistance.
 Establishment of American ship psng on an event competitive basi With that of Great Britain by basi payment to American ship operator to cover the general wage and sub sistence differential between tn ships.
 Making available a portion of tn remunerative fund of about ss,000, ooa per annum for encouraging con Erriction of mail carriers.
 Esncoursgeme of special service and new routes through nominal bar boat charters, operation under man aging operators contract, until pri Nate capital is available. and throug bids for the operation of prescribe routes and services.
 Customs receipts and tonnage taxe form the main support of the direC aid suggested. From the estimate income from customs receipts ft le2s-23 about $500. 900 900, 10 per cen or $50, ,O00, 900, would be set aside as special fund for paying remuneratic to American ships on a basis to adopted. Augmenting this fun there would be, the report states, tonnage tax collected in America ports from all ships both America and foreign; this tax estimated s-.0Oo. .00a under present condition would be raised to s4000, 900 if il proposed tonnage dues under Il pending measure are made effectiy