New-York tribune., 1922-11-25
Subsidy Foes
Open Fight TO
End S'lliE, Board
Davis, OF Tennessee, 90 OF.
fer Amendment Throwing
Entire Government Fleet
Into Hands of Hoover
Calls Harding Deceived
Pass Bill or Forfeit S-5-3
Naval Ratio, Is Warning
40 House by kirkpatrick


WASHINGTON Nov. ga concert
ed drive will be made by the opposi
tion 10 the Subsidy bill when the meas
uge is thrown open to amendment mex
~eek, 20 abolish this Shipping Bcarc
and Emergency Fleet Cooperation ant
transfer their duties to the Depart
rent of Commerce, it was announced
in the House to-day by Representative
Edwin L. Davis, Democrat, Of Tennes
see, and leader of the anti-subsidJ
forces. Mr.. Davis declared this OBJ
iective would be fought for regardIes,
Of whether the bin passed Congress
or rot.
Arguing during ths more than thre,
hours that he held the aoor this after
noon that the greater part OF the $50.
100000 annual deficit of the Laskel
board was due to administrative
and overhead expenses. Representatiy.
Davis, who Is ranking minority mem
ber Of the merchant marine committee
demanded the appointment OF bi
partisan Congressional committee {,
acuse-clean the Shipping Board. HI
declared that out of the large defici,
only $5,49f 900 was due 20 voyage
losses.
Big Day for Foes of Bib
This was the "big dav" for the on.
ponents in the House. Mr.. Davis wa
their "high card" for he Is undoubt.
ediy the best versed member on ship.
ping on the Democratic side. when
Mr.. Davis concluded, several Repub-
ltcan members of the committee dis
cussed briefly the various features OF
the bill. Representative William H,
Kirkpatrick, Of Pennsylvania, took uu
the direct subsidy provision. He said
tnat any nation proposing TO aid its
shipping must choose either the indi-
rect means or the direct cash subsidy
and that ss this government had tried
the Indirect method in the Jones act
which he said had failed because OF
the failure to do away with treaties
standing IN the way, there is but one
alternative left.
III we are going TO keep up the
e-6-3 ratio Of naval strength provided
IN the naval treaty, or If we ara to
compete with Great Britain In neace
or war, we must have a merchant rna i.
fine and we must round it ont he
said. N'
Calls s15,Ooo,Ooe Maximum
"If every ship now operated by the
Shipping BoaId ware turned over into
private hands the maximum possihle
cost under this bill would be ss ,00f, ooo
year." said Mr.. Kirkpatrick. aIf
every privately owned vessel entered
into subsidy contract with the gov,
eminent 1t would only cost Sc 500 ,OOd
more, making total Of about S15.-
o0O,O0o, but it cannot reach fhat
amount Immediately, and believe viii
not reach s7,5o0,ooO during the arst
Representative Frederick r. Lehl.
oaen, ..ew Jersey, another Republi-
can member OF the committee, told the
House that the annual loss under the
present system OF operating the feet
mas been reduced TO crock bottom, "
All we ask" he said, ais to reduce
the amount, which is really a subsidy
rs It is now paid"
What on earth in the future will
keep the boats afioat il some such con-
structive measure as this ia not
adopted?" he asked. "No alternative
has been suggested by any one at any
time anywhere" Mr.. Lehsbach esti.
mated that the United States needed
1s250,000 tons each of passenger ships
cargo vessels and tankers and refrig.
orator ships. eve now have only 500.
600 tons afoat,' he said.
Representative Frederick Hicks. Re.
publican, of Long Island, spoke briefly
in favor of the Bill, conpliment;na, ths
committee on its work.
The operating losses of the ShinnipU
Board will continue for a good manS
years, Judge Davis said, He pointed
oat tnat Mr.. Lasker had expressed this
eeiie1 rhat within thirty months afte,
Sne passage of the ship subsidy hill 4hs
government would be able to sell Sglc
anips. but that 1t probably would take
nuch longer TO dispose of ths rast
o. the government owned marine and
snst sneretore. the Shipping Board
would be required to continue opera.
Nons. He admitted upon cross.
cAaHthation that this expense wouls
ssop under thirty months at best anf
then only in part" al want 20 ask vn,
in all fairness If he did not imnosf
upon the President of the yJnisef
states when ne led him to believe anr
70 make the statement TO this Cor
gress. which think the President d;.
IN all sincerity, that the passage ~
ms Pill would automatically stop thi:
S6e,00o,000 loss"
Urges business" Course
II say that no legislation which vor
pass will get the government out a
business, viii promote the sale of shin,
at any price worth while until worIc
conditions improve" continued air
Davis. The government ought to dt
Just what any prudent business mar
would do when. according TO the evi.
denee OF all who have given testimony
on the subject, there is now no seIl;ns
ships because there is no use for them
1t is no time to throw them upon ths
market in order TO be gobbied up b,
syndicate which will later sell then
At advanced prices when conditions
improve"
Declaring that there was no oues.
ten in his mind but that the President.
though entirely honest and SINGER
IN his purpose, "has been sadly i'm
posed upon, that he has been misled !
Mr.. Davis said. 'sIf every member Of
the House would read the hearings
from beginning to end, this bill woufd
not have any more chance of pas
sage through this House than the pro.
verbal SncgbsIf@ -