Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1922-12-08
Friday Morning ....Desem Der 8. 1922.
"Ship Bonus Bill Is Standard offs
Thanksgiving Turkey"

Describing President Hardine's ship
bonus bill as "a Thanksgiving turkey for
Standard Oil, Representative Frear, (Rep
Wis., in the course Of speech against the
measure in the House Of Representatives.
pointed out that the principal benefciaries
of the loans, subsidies and tax exemptions
proposed would be the most powerful trusts
in the country.
One Of the concerns which would benefit
from the bestowal of public funds on pri-
vate interests, Mr.. Frear alleged, was the
Gulf. Tidewater & Sinclair Oil Company,
which, he said. was known as 1.-THE Mellon
Oil Company" He proposed to show by
publication Of correspondence he has had
with Secretary of the Treasury Mellon, Mr..
Frear told the House, that Mr.. Mellon
started the stock dividends melon cutting
with the Gulf Oil Company for the Stand
ard Oil and other companies, which later
followed suit with over billion and half
dollars in the aggregate"
After finding that the bill takes from
the Treasury $125,OO0,O0O for fund to
build more ships" said Mr.. Frear, I'VE
learn First, we have l,400 ships belong
ing to the Government, which cost us
$3.O00,000,000. according to the Presi-
dents statement. Now they are worth
only $200,000,000, or 7 per cent Of their
cost, according to Mr.. Edmonds (Rep. Pa. J
Of the Committee ION Merchant Marine).
ut may take 20 or 80 years to dispose
OF these ships under the Lasker admins.
tration; no one knows. The hearings show
that the Standard Oil and Steel have the
greatest fleets Of ships now afioat. The,
will reap the largest benefits from the bill
understand. These two companies are
now dividing about $l.5O0,OOO.OOO ia
stock dividend melons between them, made
upof extra profits that have been extorteC
from the American public, and Standard
Oil has exacted about II 1-2 per cent mel
profits from the people annually during
the past ten years, which includes profits
on its great feet of ships"
Representative Frear then quoted testi.
mony given before the House Committee
on Merchant Marine TO the effect that the
Standard Oil Company, the United States
Steel Corporation. and the United States
Fruit Company are the principal owners Of
the 100000 tons of cargo shipping now
in foreign trade under the American flag.
The International Mercantile Marine is the
largest owner Of the 100000 tons of pas
senser vessels now operating under the
American flag, according to this testimony.
This sress Standard Oil Company will
get enormous benefits under this bill. Let
me tell you what it will get. STANDARD
nil assA ca@Ai IN hnv more ships under
this bill at per cent interest rates-o-
less than the Government pave for The
money II borrows to loan the .reat con.
panles. The farmers o. lhe country sen-
orally pay from to 10 per cent interest
on their loaut, and the farsners q -
State are selling pOtstoes at IS cents slnd
wheat around 81 bnshel. White ,ssc Ager-
age income Of l0.000a,u0 fsrmefs -st
year Was fsr hnirw $500
asandsE5 Oh aoder Jh oil can borrow
ilcm Tee Sees srnmrl, at per cent for is
ycafs ahi'a .ae Government pays more
ih91 double that rate for the same money
aud the farmer often pays four times that
rate.
Under this bill Standard Oil gets many
millions annually for its ships that carry
its OVID oil, that is thereafter sold at II
per cent net profit Our farmers are pay
ing higher freight rates than ever before
and selling their products often below cost.
President Harding vetoed the soldiers
bonus bill because ii did not have a sales
tax. and we now face a $670,000,000
Treasury deficiency due to the repeal of
the excess profits tax. This subsidy bill
will take many millions more from the
Treasury in tax refunds that are already
estimated to reach upward Of S5OO.0OO.-
600. How much more will be lost to the
Treasury under this bill nobody knows"
Representative Frear declared that in
direct and indirect subsidies the bill will
cost the taxpayers $75.00O.O00 a year
None of the proponents Of the bill or the
Republican leaders challenged Mr.. Frears
statement Of fact
Following Mr.. Frear's speech. Represen-
tative Tincher (Rep. Kan.) attacked the
measure and called on his Republican COL
leagues 10 charge Of the bill to refute, II
they could, the allegation that the Stand
ard Oil Company. the U. S. Steel Corpora
ton, and the United States Fruit Company
would be the chief beneficiaries of the
subsidies.
IF that statement is true and can not
be successfully denied. then the Demo-
cratic party will be the principal benefi-
ciary by the enactment Of any such leeis.
lation as this" declared Representative
Tincher.
His statement was applauded by Re-
publicans as well as Democrats in the
chamber.
Traaaney Gayisna CA-saAa-a--