New-York tribune., 1922-12-07
Madden Amendment That
Makes Subsidy Depend
on Yearly Appropriation
Attacked by President
Do 1t Right or Not
AT All, His View
Senator Jones Agrees and
Won't Report Bill in
Form II Passed House
Prom Ths Tribuns's Warrington Bureau

From The TrbuHe's Washington Bureou
WASHINGTON. Dec. 6.-Presldent
Harding, In a letter 70 Senator Jones
chairman OF the Senate Commerce
Committee. takes the position that he
would rather see the merchant marine
Nil fail entirely than have IL carry
the Madden amendment. inserted in
The House, which would require the
shipping Board 10 get annual appro.
rriations for government aid TO ship
ping.
President Hardlng's opposition "a
the Madden amendment has stirred
up controversy In the Commerce
Committee, as has the question OF
providing for construction fund
As result the bill was not reported
out to-day. The committee worked
most o. the day on the measure. dis.
eusscd many phases and left the con.
trOversial questions unsettled. An
other meeting will be held tomorrow
Senator Jones wants the bill re-
ported out as the House passed il, but
some Of the other Republicans on-the
committee said this was out Of the
question.
Insists on Ten-Year Clause
President Harding in his letter "a
Senator Jones said:
"My dear Senator Jones: Referring
I 20 our conversation relating 90 the
merchant marine bill as passed by the
! House | am writing 90 urge, with all
the eaTnestness az my command. that
| tho nate committee will eliminate
/ iron he bill the amendment which
makes the shipping aid fund subj,e Ct
20 annual appropriation by the Con.
gress. | understand that this amend
ment was added without any thought
Of omasculating the bill, mainly tC
I harmonic IL with an accepted practice
Of Congress in making annual appro.
priat.ons in carrying out government
commitments relating TO lmproyemt nts
reclamation and other government
projects.
1T Is very different proposition, q
far as the shipping bill ia concerned
Our chief objection Is 20 establish ans
. UIOUlUII
marine. The ten-year commitment II
made for the purpose Of giving The
I plan the necessary period Of trial e
prove its success or failure. shipping
| enterprise involves very considerable
/ investment Of capital. Sometimes mil
/ lions must be invested In single
ship, and no shipping concern with
ample ships 20 operate definite lines IN
sustained service could hope 20 begin
without cnlisting several millions Of
capital. Much Of this capital will
necessarily be acquired through the
processes Of direct subscription at
tended by bonding.
Injuries Smaller Lines
at Is not believed that any financial
concern would support bonding
enterprise with an uncertainty IN
the continuity OF government aid
throughout the ten-year period. Oi
course, government aid may cease In
a much shorter time. IL will only cease
however, in case the shipping concern
Is earning sufficiently on its capital
10 meet is obligations under the terms
OF the bill, which provides for auto.
matte cessation Of government aid and
the return % tANtcs iANHso ~ N"N 49,
ernment.
THE outstanding objection 20 the
amendment lies in the fact that II
impedes the organization Of the fnanc-
ing OF the new and smaller Shipping
concerns which IL is designed TO build
up under a favoring merchant marine
policy. IL would be quite possible for
shipping concerns already organized
and financed 70 avail themselves OF
government aid without any more
guaranty than the bill, as passed Dy
the House, carries for them.
"But our greater interest lies In the
orgpnization and establishment and
maintenance OF new shipping lines and
n Ia inconceivable TO me that any
nroiect which would be dependent on
government aid for the first lew years
OF the difficult work Of establishing
itself could attract any capital, either
in stock subscriptions or bonds unless
the government aid which inspires the
enterprise Is substantially assured Tor
definite period.
Would Block Flaseo
"Of course, Il Is a reasonable as
sumption that Congress, once pleageo to
a policy Of government aid, would carly
on from year 10 year IN aceoraahee
with its enacted pledge. AZ the same
dime II must be recognized that a Con
gress unfayorable TO the policy OF gov
onother. interrupt the appropriations
and bring about collapse OF tne eh'''s
tcos,iassd "a psss iso')