Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1922-07-07
James w. Good of Iowa, the chairman
Of the committee on appropriations.
Changes In subsidy Bill.

James w. Good OF Iowa, the chairman
Of the committee on appropriations
Changes In Subsidy Bill.
The rewritten ship subsidy bill
is fundamentally the same meas
ure as that approved by Presi-
dent Harding in February. The out
standing change is the modification in
the subsidy payment for the so-called
industrial ships, the tankers belonging
to the oil companies and the cargo
carriers owned by the United States
Steel corporation. The amended bill
eliminated the industrial companies
from those who might seek deduc-
ton in their net income tax amount
ing to per cent of the freight money
paid to American-fag carriers en-
| gagged in the foreign trade.
1t was further stipulated that 'if
the owner of the vessels uses them In
whole or in part for the transporta-
ton Of his own property, his gross
income attributable to the operations
Of the vessels in transporting such
property shall be considered to be
such amount as is determined by the
| board and certified by it to the COM
missioner Of internal revenue as rep
resenting the fair value of the serv-
ices performed by the vessels in trans
porting such property"
This means that the industrial COM
panies will not be permitted to carry
their own products at such a low rate
Of compensation that their earnings
would go low and thus escape return
ing back into the ship subsidy fund
half of all profits in excess of 10 per
cent.
The section creating the merchant
marine naval reserve was eliminated.
The immigration section, entirely re-
as practicable, one-half of the total
number Of immigrants admitted to
the United States in any fiscal year
shall be transported in vessels regis
tered, or enrolled and licensed, under
the laws Of the United States" How
ever, it was further provided that this
section should not take effect until
President Harding fixed the time by
proclamation.
Speed Limit is Lower.
The basic rate of subsidy applies
up to ships having a speed of twelve
knots, and not up to ID knots as the
original treaty provided Most of the
other notifications have been inserted
for the purpose of limiting the powers
of the shipping board and clarifying
any legislative difficulty which now
exists.
Railroads would be permitted to
own and operate ships in foreign trade
other than foreign contiguous territory
and between the United States and the
Philippine islands. The carriers can
not enter the coastwise trade, but
there would be no barrier imposed IN
der the revised bill upon a railroad
owned ship, engaged in the foreign
trade, passing through the Panama
canal.
At both the White House and the
shipping board the outlook for senate
action on subsidy is not regarded as
good. Senators have frankly said to
the President during the last few days
that the administration should be we'll
satisfied with the enactment of tariff
legislation and bonus legislation at
the present session. The senate, the
President realizes, may be counted on
to debate subsidy for many weeks,
possibly for months, once the subject
is brought W in that body. The session
Monday in December, it is pointed
out, will be a short session and not
often does congress attempt to enact
important general legislation during
four-months' session.
The situation with respect to the
erly calls for the best thought of the
time. The President and the members
of the shipping board realize this and
sincerely believe, that the solution Of
the problem can come only through
the application of the subsidy princi-
pie. The opposing school Of thought
asserts that if the country is ever to
have a merchant marine it must be
built up without government assist
ance, and this opposing school points
to the fact that privately-owned Amer
lean shipping is now making its way
in spite of the handicap of worldwide
competition. Robert Dollar, who for a
quarter of a century has operated
freighters on the Pacific, only recently
has reminded the government that if
it will not interfere too much, private
ship owners will get along.
The situation that confronts the
government at this time may be
summed up as follows: 1t is the own
er Of 700 good freight ships and sew
eral hundred ships that are of small
value or of no value at all. It is try
ing to get out of the shipping business.
The 700 ships were built at cost of
approximately 5000 a ton. The best
the government. is offered for them
today is $50 a ton.
AT the beginning CT this calendar
year the shipping board was running
behind at tie rate of 100000
month. There has been a reduction
in this deficit so that today the gov
eminent on its shipping business is
running behind only about 100000
month.
IS,HfA