The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-03-01

upon mis- actual Investment. and
thereafter the owner shall pay 50
per cent of such excess earnings TO
the merchant marine fund. until the
full amount OF subsidy previously
received is returned to its source.
In other words, IL Is proposed "a
encourage the thipping in foreign
trade until the enterprise may earn
10 per cent an actual investment.
whereupon the direct aid extended
Is TO cease and the amount advanced
Is TO be returned out Of a division
with the government of profits In
excess Of that 10 per cent. The
provision makes Impossible the en-
richment OF any special interest at
public expense. puts an end to the
losses, and leaves to private enter
prise the prospective profits Of sue
cessful management.
Cost to Run Hish.
The cost Of such a program prob
ably will reach fifteen millions the
first year. estimated on the largest
possibilities Of the present fleet
With larger reimbursement to
high-speed vessels and the en-
largement of the merchant marine
to capacity comparable with our
commerce the total outlay may
reach the limits Of thirty millions.
hut It Is confidently believed that
the scale may in due time there
after be turned. until the larger
reimbursements are restored to
the treasury. Even IL we accept
the extreme possIbility-that we
shall expend the maximum and
no return will ever be made. which
Ia nnnfAGa tn a.
establish an American merchant
marine-the expenditures would
be vastly preferable TO the present
unfortunate situation. with our
dependence on our competitors
for the delivery OF our products.
Moreover. the cost for the entire
year would be little more than
the deficit heretofore encountered
In two months during the expert
ment of the government SPONSOR
ing the lines and guaranteeing
the cost of their operation.
The proposed plan will super
sede all postal subventions. postal
compensations and extra compen-'
sations. excepting parcel-post
freiRhts. all of which combined
are fast growing to approximately
five millions annually. 1t will ul-
timately take the government out
of a business which has been. and
Is now. excessively costly and
wasteful and involving a loss in
excess OF the highest subsidy pro-
posed. It will bring to shipping
again that individual initiative
which Is the very soul OF success
full enterprise. II should enable
the government to liquidate its
vast fleet to the highest possible
advantage.
Must Meet Competitions.
American merchant marine. which
must face the stiffest possible COM
petition by the fleets OF the MARI
rme nations. requires something
more than the direct aid to which
have alluded. The direct aid
proposed. even though il uIti-
mately runs to S3O.O0O.o0o annu-
ally. is insufficient alone to offset
the advantages of competing fleets
There are more than wage costs
and working conditions and the
higher costs of rationing. which
no considerable American sentI-
ment will consent to have lowered
to competing standards.
The men who sail the seas under
our flag must be permitted to
stand erect in the fullness of
American opportunity. There is
the higher cost of construction.
the larger investment. the higher
cost of insurance outlay. even
though the rate is the same. There
are higher interest charges. Our
problems in shipping are very
much the same as are those Of
our industries ashore. and we
should be as jealous in promoting
the one as we are in protecting the
other. We may and must aid
Indirectly as well as directly.
We need q 'favoring spirit. an
awakened American pride. and an
avowed American determination
that we shall become. in the main,
the carriers of our own COM
merce. in spite of all competition
and all discouragements. With
direct and indirect aid. 1 bring
to you a definite program. Those
who oppose il ought. in all fair
ness. to propose an acceptable
alternative. There can be no dis
pute about the end at which we
are aiming.
or the indirect aids there are
many. practically all without draft
upon the public treasury. and yet
all highly helpful in promoting
American Shipping.
Urge. Officials to Use ships.
1t is a simple thing-seemingly
il ought not require the action Of
Congress-but American officials
tra rnlin, NJ F,,fe
at government expense ought TO
travel on American ships. assum-
ing that they afford suitable ac-
commodations. II they do nor
afford the requisite accommoda- :
ton on the main routes of WORLD
travel. the argument that we
should upbuild is strongly en-
phasized.
think we should discontinue,
so far as practical. the transport
services in the Army and Navy.
and make our merchant and pas
senger ships the agents of serv-
ice in peace as well as war.
We should make insurance avail
able at no greater cost than 10
afforded the ships under competing
flags. and we can and will make
effective the spirit OF section rs
Of the Jones act of 1920. provI5-
ing for preferential rail and steam
ship rates on through shipments
on American vessels. American
railways must be brought into CO.
operation with American steam
ship. lines. 1t is not in accord with
either security or sound business
practice to have our railways fur
thering the interests of foreign
shipping lines. when the concord
of American activities makes for