The labor world., 1922-04-01

for their operation and gettin,
freight returns from their opera
They Buy On Credit.
The bill proposes that ships be
turned over by the board on credit,
the government taking a mortgage
'at not less than 2 per cent inter-
est on the vessel and requiring no
further security. If five members Of
the shipping board agree to the pro.
cess the sale of vessels may be con-
summated without advertising.
No initial payment for vessels is
demanded in the bill and all pay
ments of both interest and principal
may be deferred for Is years.
Under similar easy terms it is pro-
posed that the shipping board shall
loan money for conditioning and inn
proving (motorizing). Thus. ships
may be bought, conditioned and mo-
torized without the payment Of a
cent to the government for IS years.
The language Of the bill regarding
terms is that "such sale shall be
made at such prices and on such
terms and conditions as the board
may prescribe, but the completion
of the purchase price and interest
shall not be deferred more than Is
years. = ="
Labor Sections Vicious.
1t has already been shown that
the labor embodied in
the immigration and naval reserve
sections of the bill-are vicious. but
analysis shows the financial sections
to be equally impossible of support.
The ships to be sold cost approxi-
nlately 5000 per ton to. build. They
will be sold at prices ranging from
$40 to $50 per ton. Chairman Las
ker- of the shipping board says the
best ships will bring $40. Then, on
government loans. they may be mo-
"torizel' and conditioned. 1T is estf-
mated that when conditioned and
motorized, and in view of the pro-
posed subsidy and income tax ex-
emption on earnings, they will be
worth, in earning capacity, from $50
to 500 per ton. and perhaps more.
All of this value will be created for
prospective ship owners by govern
~ There is to be provided for the
shipping board, under its absolute
l6control, without any limitation Of au-
thority, a fund Of 1925, 100000 to be
sLsed as a construction fund and an
other fund of from $40,OO0,OO0 to
S60,000,OO0 per year out of whicl,
! to disburse subsidies to the future
gOvernment-made shipping mag
mates.
=, The construction fund will be
f1aised by sale of bonds, possibly
Liberty bonds, state and municipal
bonds, now held by the shipping
board. The revolving fund out of
which subsidies are to be paid will
#e raised. for the most part, by the
simple expedient Of side-tracking i'm
"port duties and partly from the sale
ships, if anybody actually pays
Her ship within fifteen years.
r Fast Ships Get Cream.
The amazing provisions for loan
Ing money and for raising the money
o be loaned are equalled only by
he provisions for paying the SUBJ
idy itself.
The subsidy itself is in two major
aSrts, each having subdivisions.
srst there is the cash remuneration.
s2ond, there are various income tax
#;mptions for ship owners and ship
4;rs, and provisions inside of pro-
ssions for getting more easy money
l|EonR the government.
For cash remuneration there Is a
soasic compensation and an addition
'al compensation. To all vessels doc.
umented under U. S. laws and of
! over $500 gross tons, capable of Is
knots, there is to be pa0 a basic
compensation Of one-half cent per
gross ton per 100 nautical miles.
Added to the basic compensation
is the additional compensation, rang
ing from two-tenths of a cent per
ton for the 13-knot vessels, up to
two and one-tenth cents for vessels
capable of 23 knots. Thus the 23-
knot vessel would draw a subsidy Of
two and siX-tenths Of a cent sub
sidy per gross ton for every 100 miles
travelled.
Draw Big Money.
The fast ships draw the big money.
The little fellows. slow of speed, get
little help, which means that big
companies, able tn own fleets of fast
ships, get big help, while small COM
panies, able to own only small, slow
ships, are left to lag and get out OF
the business. The faster the ship
moreover, the quicker the turn
around" and the more the possibili-
ties of profit. ;,
The shipping board mary refuse,
one mere whim, to enter into con.
tract with any ship owner and nc
ship owner can collect subsidy un.
less he has a contract with the
board,
The board may make or refuse tc
make contracts !, on the basis OF
whether or not it likes an ,appli-
cant's character, ability. experience
or financial ability. Il #&.1t =.
.$Once these contracts are made the
governments is bound by them for al
"a (Continled on page 81 ST.
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