Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-11-18
THE SHIP SUBSIDY BILL


ing's call for a special session
of congress declares 1t is %necessi-
tated by "the public interests" this
phrase may we'll be interpreted
private interests" seeing that the
particular purpose Of the extra
sessions is to pass the ship sub
sidy bill.
Since President Harding insists
upon legislating the peoples
money into the pockets Of the
"privateers" behind the present
ship bonus bill, it is pertinent to
study the price that will have to
be paid in taxes to provide these
special interests with all the lar
gesses that are proposed for them.
The salient facts in this 'conr1ec-
ton have been furnished by the
democratic members of the house
committee on merchant marine IN
a minority report submitted last
June.
This report shows that the gov
e~rnnent's fleet built during the
war and now in the keeping Of the
United State sshipping board, cost
the people $4,000, ooo, 900. The ship
ping board would be authorized by
the passage of the pending bill to
sell these vessels for $500, 1000, 900
loss to the taxpayers Of $780,
100000.
Having purchased the ships, the
new owners would have the oppor-
tunity and the disposition, in the
opinion of these democratic mem
bers, to capitalize them for some
thing like their true value and
base their freight rates on this
higher valuation, SO that the people
would suffer first from the ship
ping boards ruinous deflation OF
$500, ooo,o o0 and afterward by
the shipping trusts r~ecless infla-
ton of more billions. This would
be an additional loss and burden
for the taxpayers to bear for the
Acknowledgement of special inter
ests.
The bill contemplates the grant
ing Of bonuses aggregating $780,
000,O 900 to the private concerns
which buy and operate the ships
and the lending of S125,o0o,o 900 to
these same corporations and indl-
viduals to pay for the building OF
new and the reconstructioning of
old vessels. This procedure, the
democratic Representatives point
out. would be tantarnount to giving
the ships away and then bestowing
rewards totaling 100000 for
their operation by their new own
ers.
Borrowers Of the Si25,000,0o0
placed at the disposal of the ship
ping trust by President Harding's
"pet measure" would be enabled TO
obtain loans at an interest rate of
? ner cent and for terms as long as
IS years. The only collateral
pledged for the repayment OF these
loans would be the ships upon
whcih the money was borrowed,
while the amount lent by the gov
eminent in any given case might
be; the equivalent of two-thirds OF
the market value Of the vessel upon
which it was advanced.
The democratic members call
attention to the fact that while this
bill gives powerful corporations
the privilege of borrowing the
governments funds at a rate Of 2
per cent a year for a term of IS
years and up to two-thirds of the
market value of the ships upon
loans are made, farmers who OBJ
tain money from the federal farm
land banks can get accommodations
only by paying interest at the rate
of 6 per cent a year for limited
periods and in sums not exceeding
so DER cent Of the market value of
farms they mortgage as security.
Over and above these direct bon
uses from the federal treasury, the
beneficiaries of the presidents
pet measure" would received in
direct subsidies. They would be
exempt from all federal taxes pro-
vided the amount which would be
otherwise payable as taxes is IN
vested or merely set aside tor IN
vstrnent in new ships. No such
generosity is suggested in respect
to the faners or small business
men or wage workers of the coun-
try. Only the rich are to have
new riches. Verify, unto every
one that hath shall be given, and
he shall have abundance"