The labor world., 1922-10-07
SOLDIERS BONUS
DEFEAT TO HELP
ENACT SHIP BILL
Vicious Legislation to Pass i
Reaction Wins Election.

With the defeat of the soldiers
adjusted compensation bill, advo-
Gates of the ship bonus, including
President Harding and Chairman
Lasker of the United States Shipping
Board. believe that this scheme to
sell $1,000, 100000 worth of vessels
for $2OO,O00,000 and pay the pur-
chasers SIS, 100000 a year to operate
them, has a better prospect Of pas
sage in the present Republican Con-
gress.
Provisions for the payment Of the
soldiers adjusted compensation
would have required total of $3,-
OO0,OO0,000 in the next thirty years
and an immediate appropriation of
about $75,0OO,000 to establish the
ton. This commitment in favor of
the former soldiers of the World
war would have made it difficult if
not practically impossible for the
Harding administration to get Con-
gressional authorization for the vast
sums which it is proposed to vote for
a bonus to the shipowners who buy
the peoples merchant marine for
less than a tenth of original cost.
The lobby that has been active in
behalf of the ship bonus .hi4b74or-<lae
last 1S months is understood to have
foreseen the trouble it would expert
ence> is the soldiers compensation
was granted. AS result, the influ-
ence Of this lobby was added to that
of all the other interests which were
fighting the soldiers bill.
President Harding's arguments
against the soldiers bonus are
equally valid against the subsidy to
shipowners, but they will not be
urged by him in respect to Chair
man Lasker's plan to sell the peo-
pies fleet and in addition pay $75,-
100000 to the purchasers to operate
it at a profit to themselves, free from
taxation.
In the message accompanying his
veto of the soldiers bill President
Harding pointed out that there
would be Treasury deficit of $780,
100000 in 1928 and "a further de-
ficit for the year succeeding, even
after counting upon all interest COL
lection on foreign indebtedness
which the Government is likely to
receive" Then came this striking
utterance:
ITO add to our pledges to pay, ex-
cept as necessity compels, must
.kol
folly. Inevitably it means increased
taxation, which Congress was un-
willing to levy for the purposes Of
this bill, and will turn us from the
course toward economy so essential
to promote the activities which con-
tribute to common welfare"
Within three days after writing
that argument against the soldiers
bill, President Harding announced
his Intention of calling Congress
back into special session on New. Is
to pass the ship bonus bill. In press
ing Tor the passage of this measure,
which contemplates appropriations
OF $75,0O0,O00 a year for ten years.,
the lending of $125,0OO,OOO to pri-
vate interests at per cent a year,
and the exemption Of taxes on the
ships bought by the shipowners
from the Government at 10 per cent
of their cost to the people, President
Harding appears not at all conscious
that he would thereby commit "a
governmental folly" or that he
would be adding "to our pledges to
pay, except as necessity compels."
Control of the House of Repre-
sentatives in the next Congress
would mean the death of President
Harding's ship bonus, and he is
therefore eager to hurry it into law
before the present Republican Con-
gress loses its grip on legislation.