Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-08-20
II. commissioner Meyer Ll..ncr.

bhN another phase OF tn" policy of
protection to American industry.
The merchant marine ~ at once our
most intensely competitive Industry.
ana tn" one Industry that for more
than sixty years has been lett almost
absolutely unprotected by tn" United
states government; President Hard
inE's proposals FOR government aid
Ia merchant shipping. row pending
in Congress. are all based upon the
principle that, from the standpoint Of
national prosperity ~ well as ma
tional security IN" American m"r-
chant nariu" imp"rativrly calls f,v
fostering and encouragement rather
than tn" neglect that has been its
portion for the past several genera
lions.
Tho necessity FOR government, aid
I" merchant shipping arises out OF
tn" higher coat Of operation ot ships
under tn" American nag than under
the flag "f any az TIA" other princI-
pal maritime nations Tn" higher
cost az American operation results
largely from higher pay to American
officers and crew. higher subs iStoncc
costs. and higher nX"d charges FOR
interest insuranr" and depreciation
on our admittedly higher ship values
Tn" legislation pending in Con
Rress provides for Indirect aid a
we'll az direct aid 10 American ship,
pinK-that is 10 say. u is IN" policy
OF the administration TO give every
reasonable indirect advnntag" II may
hv regulation or legislation to Amer
lean shipping. and direct aid as we'll
IN the way nf n cash payment to
compensate. 10 some extent at i"astt
for tho operating diTcrcu,ial between
American and foreign nag SHIPS
VIII Cut Government Expenses.
and government commodities on com
mrrcial vessels whenever practicable
viii be lcsS expensive to tho govern :
mont than the present plan and, at
the sam" time, exceedingly helpful
and stimulating 10 priNai" shipping
II is also proposed hereafter To pro-
hIhit tn" overseas transportation Of
passengers or freight at IN" cNp"ns"
II the povcrun"nt other than In a
vessel diving the American Nag, cx-
c"pt ia case ~ emergency.
The proposal for coordination OF
rail- and water transportation. II is
anticipated. viii he exceedingly help
full. Tn" proposed Legislation looks
toward "a compiler" coordination "f
rail and water transportation, which
will hc under IN" joint Jurisdiction
~ the Interstate Commerce Commits
sion and tho Shipping hoard. This
viii give tn" farmer and tn" manu-
faciurcr "a system ~ smooth. unin-
tcrruptcI transportation for th"!r
products from inland points in tho
United states TO remote foreign mar
kc;S
The sale OF ia" shipping BOARD
foe, at world market prices. which
is tn" policy % the shipping BOARD,
together with tho application OF the
"a In
sure ttc establishment Of an Amer
lean mcrChau, marine on Il sound
and permanent business basis. guar
antccding the healthy development
and stability OF American overseas
comm"rc" and placing tn" nation in
position II Preparedness for de-
Tense on the seas
Fleet Po"rIy Bnlnnr-d.
our feet. however. Is lily halanced;
there are TOO many slow cargo ships
and too few Of the faster passen-
gcr-carro vessels and fast freight
crs. including refrigerator ships.
while thcr" is large surplus Of
raEkcrs. 70 provid" rucouragcment
for the builGing OF necessary types.
Il Is proposed To establish con
siruction loan tund Of $l2i.0O0.00G To
he loaned at low rates of Interest FOR
the building "f new and desirable
types OF ships, and FOR the purpose
of cuuipping existing vessels with
the most modern and most efficient
machinery.
The merchant; shipper Is given a
direct selfish reason for shipping on
American i!as ships by the provision
that he shall b" allowed "A reduction
from his net Federal income tax. on
the basis OF SO Of the freight paid
by him on goods imported or ex-
ported in Americana flag vessels. This
PROVISION is Il good substitute for
section "a OF thr merchant marine
act, 1920. which directed the prcsI-
dent to abrorate those portions of
treaties restricting the right to i'm
pose discriminating customs duties
on foreign vessels. The provision
proposed is really very much more
effective because. while section "a APP
piled only to the dutiablc imports
on American flag ships the proposed
deductions from income tax would
apply TO all shipments on American
flag ships, imports as well as exports.
The legislation provides also for
a greater allowance for depreciation
FOR income tax purposes on vessels:
also for the waving Of income taxes
on net earnings OF vessels in for
ciEn trade and on the proceeds OF
sales OF ships where the amount OF
such taxes Is applied 10 the cos; OF
new ship conStructiOn--prov
which should considerably stimulate
new shipbuildinE. create a demand
! for shipyard labor and bring about
renewed activity in the shipyards on
| both coasts.
| VIII Bring Immigration business.
| immigration is recognized as the
| backbone Of profitable transoceani,
| passenger business. The administra
] Tion is authorized to negotiate will
| foreign governments so as 10 re-
! move amy treaty restrictions which
| prevent our insuring TO American
/ Tag passenger ships at least 80 pei
/ cent of the Immigration coming Il
! this country
! These measures o! Indirect aid
! however. Will not be sufficient to en-
able American ships 10 operate sue
ccsSfully in competition with tn
| ships of other nations. Direct Il
nanciai aid also will he required.
The aim of tho proposed legisia
ton is to place our shipowners II
"a position TO compete with Brit
ish shipping. which is the dominan
factor In tho trade Of the Unite
states and Is the greatest factor II
the carrying trade of the world: an'
| since tho wage scales on British