Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-03-01
EXPECT FIGHT
ON PLAN FOR
ship SUBSIDY
Harding's Scheme Thought
Certain to Arouse Con-
test in Congress
PUBLIC STANDS LOSS
Ten Per Cent of Duties to Aid Ship
ping is prOpOSal-Other Sugges-
ti0nS.

Washington, March 1.-President
Harding introduced yesterday what
is probably the most radical. GER
tainly the most distinctive. policy of
his Administration to date. when
he candidIy laid before Congress a
carefully conceived scheme of ship
subsidies.
In proposing this. Mr. Harding
defied all prejudice against the use
of public money to meet the losses
sustained by private enterprise. He
also raised an issue which has been
bitterly debated in Congress for
many years.
/ Moreover, in championing the sub
sidy as means of maintaining a
great American merchant fleet. he
. he will know that he will precipitate
/ another contest in the House and
Senate. as impassioned perhaps as
those Of other years when. by fill
buster subsidy measures were de-
! feated
In his message the President took
the offensive, however, by outlining
what is admitted to he a genuinely
J constructive program Of relief for
! the ship operator unable at the
present time to show a profit. He
suggested the creation of shipping
fund by taking 10 per cent of all
duties collected on imports and de-
posting it to the credit of the Ship
ping Board. This is in lieu of the
| discriminating duty now allowed on
all imports carried in American bot
toms.
To this fund is to be added all
tonnage charges, taxes, fees imposed
on vessels entering American ports,
also such sums as are payable to
American vessels by the postal SER
vice for the transportation of the
mails by water. Parcels post mail IS
excepted From all these sources it
! is expected that S30.000.000 or more
will be made available for suhsidz-
ing American shipping.
Out of this fund once established
ships may be compensated by the
Shipping Board on a scale ranging
from one half Of one cent for each
gross ton, regardless of speed. for
each 100 miles travelled up to q
maximum Of 26 cents for each ton
! for vessels steaming at the rate Of 23
! knots or better.
/ All ships accepting this subsidy
are to carry the United States mails.
parcels post excepted, free of charge.
Once ship earns 10 per cent on the
actual investment. it shall cease to
receive anything from the Govern
ment, and. if its earnings exceed 10
per cent. half Of all it makes over
that amount must be paid to the
Government until all that may have
been paid out 20 it is returned.
The cost of such scheme will not
be less than S15.OOO,o00. the first
year. the President estimates. Even
tually the cost will run as high as
S30.000000 annually and may run
! higher
| The Administration. after giving to
Congress plan of "direct" aid to
shining. suggests series of "indi-
rect" means Of putting the merchan-
tile fleet upon substantial basis.
These are described aS "highIy help
full" without any draft upon the
Federal Treasury. In brief, these
! planS include:
Legislation requiring American
officials travelling on Government.
mission To sail on American ships.
Discontinnance. as far as practi-
cahle. Of all army and navy trans
port services.
Authorizing preferential rail and
ocean rates on through shipments
| in American bottoms.
An amendment 70 existing law
! permitting domestic railroads to own
and operate steamship lines in other
than cOaStwisc trade.
Extension of the protection Of
coastwise shipping to the Philip
pines.
Requirement that immigrants shah
use American ships wherever il is
practicable.
Remission Of portion of income
tayos provided such remission ls
applied to the cost of new ship con-
>truction.
Extension of the Government loan
for construction to the reconditioning
Of ships.
This is what the Administration
proposes. directly and indirectly, for
the maintenance of permanent
American merchant marine. fleet
Of ships costing billions of dollars and
aggreCatine about 12.000.a0o tons.
exclusive Of the wooden ships