New Britain herald., 1922-02-28
Measure Provides Finan- cial Aid For American Ship Owners Engaged In Foreign Trade
President Goes Before Both Houses and Reads His Message on American Merchant Marine.

Washington,Feb. 2s.-A ship sub
 sidy estimated at approximately $32,-
 000,o00, annually to be provided for
 principally by the diversion of ten
 per cent of the nations customs re- ceipts, would be paid to the owners of American ships engaged in foreign trade under bill introduced today in the senate and house. The measure incorporates subsidy plan prepared by the shipping board and endorsed by President Harding in message read tody to a joint session of the two houses.
 Introduced in the senate by Chair man Jones of the commerce com mittee and in the house by Chairman Greene of the merchant marine com mittee, the bill sets forth that the purpose of the direct subsidy provision is to Aid the development and main tenance of the American Merchant Marine, to Promote the Growth of the Foreign Commerce of the United States and to Contribute to the Ma tional Defense"
 Construction Loan Fund.
 Other provisions of the bill would authorize the creation of "construc- tion loan fund" to be administered by the shipping board and derived from the sale of it's vessels in addition to operating revenues; require that not more than fifty percent Of the num- Der of aliens admissible to this coun- try in any one year be transported in foreign bottoms: and authorize the payment of an additional months pay annually to officers and men of the merchant marine who shall enlist in The" Merchant Marine Naval Re serve," which the bill would establish as component part of any reserve force of the United States navy
 Would Sell Its Ships.
 By amendment of section five of the Merchant Marine act of 1920 the shipping board would be authorized and directed" to sell it's ships 'as soon as practicable, consistent with good business methods to citizens of the United States.
 The base subsidy rate provided for all vessels either sailing or of 1,5oo gross tons or more, regardless of speed "is one-half of one cent per gross ship ton per hundred nautical miles travelled" All power driven vessels between that tonnage and five thousand tons gross would receive rate applying to greater displacement.
 Speed of Vessels.
 For vessels capable of a speed of thirteen knots or more additional al lowances would be provided, ranging l from two-tenths of one cent to two ( ind one tenth cents for vessels with a ( speed of 27 knots or more.
 The shipping board would he au- horized to increase these rates up to 1ouble their amount whenever it shall determine that the base rate is insufficient to induce the operation of ines where the establishment and of service is considered necessary to promote the nations = welfare" Similarly it would be per T nitted to reduce the base rate under pecial circumstances where it was considered desirable
 Trade Defined. Trade between the United States nd the Philippines and the Virgin stands is defined for the purposes of he bill as foreign trade The defini-, ion of such trade excludes that on he Great Lakes as well as trade "be- - ween ports in the United States and orts in foreign countries where the istance between the vessels last port call in the one and the vessels first ort of call in the other, is less than W 50 miles"
 Payments Provided.
 The bill provides that where net perating income derived by owner om vessels receiving the subsidy eneft exceeds ten per cent in any W seal year. fifty per cent of such ex- p' ,ss shall be paid to the shipping e. bard to be placed in the merchant 'e arine fund from which the subsidy as n ould be paid, although it is stipulated ..'' rat this shall not exceed the total we mount of compensation received 1der the proposed law. n1, ,n In addition to the ten per cent di- IVY rsion of customs receipts to create we is fund, the bill provides that it ,,- all be derived from port tonnage ". lties, taxes or fees, which would be ,,,. 'ubled under the bill, and also the - nount that would otherwise be pay ''' " lie by the post office department for " , e transportation of mails which any ,. ip contra Ming for the subsidy would "' obligated to do under specified