The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-11-22
PRESIDENT POINTS
OUT MEASURE IN
REALITY ECONOMY


OUT MEASURE IN
REALITY ECONOMY
Continued from Page Two)
1ates their cases into action will
longer sustain a program of OBJ
struction and attending losses to
the treasury.
Urges 1--WE WHIP
II have come to urge the con-
structivs alternative, to reassert an
American we will. have come to
ask you to releave the responsible
administrative branch of the govern
ment from a program upon which
failure and hopelessness and stag
gering losses are written for every
page and let us turn to a program
of assured shipping to serve US in
war and to give guaranty to our
commercial independence in peace.
Il know full we'll the hostility in
the public mind to the word sub.
sidy.' 1t is stressed by the opposi-
ton and associated with special
privilege by those who are unfail
ing advocates of government aid
rectly concerned. Government aid
would be fairer than the subsidy
In defining what we are seeking to
do for our merchant marines and
tho interests are those of all the
people, even though the aid goes to
the few who serve.
III government aid Is a fair term,
and think it is-to apply to author
cation aggregating s75,0o0,oo0 to
promote good roads for markets
highways, 1t is equally fit to be APP
la a. ~ xcl..
tenance of American market high
ways on the sailed seas. II, govern
ment aid Is the proper definition for
fifteen to forty millions annually
expended to improve and main
tain inland waterways in aid
OF commerce, 1t Ia a proper
designation for needed assist
ance to establish and maintain
ocean highways where there is
actual commerce to be carried.
Would Save Half
but call 1t Subsidy since there
are those who perfer to appeal to
mistaken prejudiees rather than
make frank and logical argument.
We might call the annual losses of
fifty millions which we are paying
now without protest by those who
most ahhor, we might as we'll call
that a subsidy If so. II am propos-
Ing to cut in half approximately and
to the saving thus effected there Will
be added millions upon millions of
further saving through ending losses
on capital account-goyernmen capt.
tai out of the public treasury. always
remembered-and there would be at
least the promise and the prospect
of the permanent establishment OF
the needed merchant marine.
Il challenge every insinuation OF
favored interests and the enrichment.
Of the special few at the expense OF
the public treasury. I am first Of
all, appealing to save the trsasury.
Perhaps the unlimited bestowal of
government aid might Justify the APP
prehension of special favoring, but
the pending bill, the first ever pro-
posed which carried such aevision
automatically guards against en-
richment or perpetuated bestowal.
1t provides that Shipping lines receive
ing government aid must have their
actual investment and their operat-
ing expenses audited by the govern
ment. that government aid will only
be paid until the shipping enterprise
earns 10 per cent on actual capital
employed and Immediately that when
more than 10 per cent earnings 10
reached half Of the excess earnings
must be applied to the payment Of
tho government aid which has been
previously advanced. Thus the pos
sible earnings are limited to . very
reasonable amounteif capital IL to be \
risked and management 10 to be at
tractsd. If success attends, as we hope
1t Will, the government outlay is re-
turned the inspiration of opportunity
to earn remains and American trans
portation by sea is established.
Policy OF Other Nations
Through differing in detail, 1t is
not more In proportion to their pop
ulation and capacity than other great
nations have done in aiding the es-
of their merchant ma
rines, and it is timely to recall that
We gave them our commerce to aid
in their upbuilding, while the Ameri-
can task now Is to upbuild and IS.
tablish in the face of their most &c.
tive competition. Indeed. the Axneri-
can development will have to over
come every obstacle which may Be
put In our path. except a. interna-
tional comfy forbids. Concern about
our policy is not limited to our lwn
domain. though the interest abroad Is
Of very different character. / hope |.
is seemly to say it. because it must
be said. the maritime nations of the
world are In complete accord with
the opposition here to the pending
measure. They have perfect right
to such an attitude. When we look
from their viewpoint we can under
stand. But / wish to stress the
American viewpoint. Ours should be
the viewpoint from which one sees
carriers at sea, the depen-
dence Of American commerce, and
American vessels for American re-
lance In the event Of war. Some y1f
the costly lessons of war must DO
learned again and again. but our
shipping lesson in the World war was
much too costly to be effaced from
the memory of this or future genera
items.
Not so many months ago the head
Of company operating fleet OF
ships under our flag called at the |
executive offices to discuss permit |
70 transfer his fleet OF cargo vessels |
to foreign flag. though he meant |
to continue them in a distinctly |
American service. He based his re-
quest for transfer on the allegation |
that by such a transfer he could re-
ducs Us labor costs alone sufficiently |
TO provide profit on capital invest |
ID. do net veueh for the accuracy |
81 tho statement nor mean to dis |
cuss II.
High Labor standard
The allusion Is made to recall that |
u good conscience Congress created |
~ law conditions surrounding labor |
IN American ships which shipping
men the weird over say results In |
higher costs Of operation under our
Tag. frankly rejoice If higher stan. |
aeTds Tor labor on American ships |