Evening star., 1922-12-06
Letter Supports Attack on
Madden Amendment in
Senate Committee.
UNCERTAINTY OF FUTURE
WOULD HAMPER PLANS
Executive Declares Financial Con.
Germs Would Hesitate Unless As
sured of Continuous Help.

A sharp contest over the so-called
Madden amendment to the admins
! tration ship subsidy bill developed n
the first meeting of the Senate com
merce committee on the bill today.
dent Harding opposing the amend
ment. The Madden amendment Woulc
,, require the Shipping Board to COM
back to Congress every year seekfng
authorization for the appropriation
for government aid to the merchanr
marine.
The text of the letter. written :.
Chairman Jones OF the commit;e"
follows:
Text Of Presidents Letter.
MY dear Senator Jones:
! referring to our conversation r.
lating to the merchant marine bill. .
passed by the House. / am writin-
to urge. with all the earnestness .
my command, that the Senate CON-
mittee will eliminate from the b!..
the amendment which makes iii"
shipping aid fund subject TO annua
sSat BY this c0ngssss
.
added without any thought of emas-
culating the bill. mainly to harmonic
1t with an accepted practice OF Con-
gress in making annual appropria-
tions in carrying out government
commitment relating to improve
ments. reclamation and other govern
ment projects. 1t is a very different
proposition SO far as the shipping
bill is concerned.
Our chief object is to establish an
he m yy3e Y-r
rine The ten-year commitment is
made for the purpose OF giving tn,
plan the necessary period OF trial q
prove its success or failure. Shippin.
enterprise involves a very consider
able investment Of capital
Sees Plans Hampered.
Sometimes millions must be invest
ed in a single ship. and no shippins
concern with ample ships to operate
definite lines in sustained service
could hope to begin without enlistin2
several millions Of capital Much o.
| this capital will necessarily be ac
quired through the processes Of direct
subscription. attended by bonding.
Impedes Smaller Concerns.
THE outstanding objection to i;e
amendment lies In the fact that II iir-
pedes the organization and financing
of the new and smaller shipping con-
Germs which, il is designed to build up
under q favoring merchant marine poll
cy.. 1t would be quite possible for ship
ping concerns already organized and
financed to avail themselves OF govern
ment aid without any more guarantee
than the bill. as passed by the House.
carries for them. But our greater in
terest lies in the organization and es-
tablishment and maintenance of new
shipping lines, and it is inconceivable to
me that any project which would be de-
pendent upon government aid for the
first few years of the difficult work o.
establishing itself could attract any
capital, either in stock subscription or
bonds unless the government aid. which
inspires the enterprises. is substan-
TALLY assured for definite period.
Upset Is Possible.
of course. 1t is a reasonable as
to a policy of government aid. would
carry on from year to year In ac-
cordance with its enacted pledge. AT
the same time. 1t must be recognized
that a Congress unfavorable to the
policy of government aid might. for
one reason or another. interrupt the
appropriation and bring about a col
lapse of the entire undertaking. The
mere possibility OF such fiasco
would undoubtedly deter the sue
and defeat the very object which the
merchant marine act sets out 20 ac-
complish. So long as We are under
taking this great experiment In f-s-
tering and upbuilding our merchant
marine. 1 think We ought to commit;
ourselves to ii uneQuivocally and to
the ten-year period.
1t will be vast saving to the
federal Treasury to embark upon this
enterprise and liquidate our shipbuild-
ing accounts. through a policy which
encourages the sale and operation
rating in value in the hands of the
government. AS a mere temporary ex-
pedient the enactment OF the bill is
altogether desirable and in seeking
great constructive results. We must
keep in mind that a project worth
venturing on is full worth ten-yeaf
commitment.
Worth Doing Right.
There was no Limitation on the re-
bate through discrimination in duties
as provided In the existing law. and
fail to see any reason why we should
ieopardize the program by the threat
of conflict in securing an appropria-
ton from year to year. The thing i.
worth doing right and with every pos
sible effort toward a definite policy
for an ample trial period. else 1t is
scarcely worth doing at all.
..It is not believed that any financial
concern would support a bonding en-
| terprise with an uncertainty in the
continuity of government aid through
out the ten-year period. OF course.
/ government aid may cease in q much
/ shorter time. 1t will only cease.
! however, in case the shipping concern
is earning sufficient on its capital To
meet its obligations under the terms
/ of the bill. which provide for auto
matte cessation of government aid
| and the return of excess profit to the
e"i cannot hip but feel 1 would
rather the measure should fail entirey
than to have one enacted which will
bring us to extreme disappointment
because we have entered upon q pro-
gram in q half-hearted and rather in
different way. Very truly yours.
WARREN G. HARDING
Senator Jones. chairman OF the conf
mfttee, is reported to have gone so
far as to say that II the Madden
amendment were returned he himself
would not feel like pressing the
LEGISLATION. Opponents of the Madden
mendment contend that 1t would have
the effect of throwing a wet blanket
| over the entire proposal for govern
! ment aid to the merchant marine;
| that Americans would not go into
the shipping business when 1t was
uncertain what the government aid
| would be from year to year. Under
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