Perth Amboy evening news., 1922-08-03
SHIP SUBSIDY
MOVE DELAYED
No Action is Likely Until A.
ter Fall Election, it is
Learned

WASHINGTON. Aug. 3-"Out of
the frying-pan into the fire" seems
TO be the future Immediately ahead
of the United States Senate.
For no sooner will the Senate
have concluded with the tariff bill.
which has split party ranks wide
open, than it will be confronted
with the administrations ship sub
sidy measure, over which a scarce
ly less bitter battle seems certain.
The House will take up the SUBJ
sidy bill soon after it reassembles
Aug. Is. following it's midsummer
recess. Hearings already have been
concluded. Action by the House be-
fore the middle of September is on
sidered probable.
DIags in Senate
But there will be nc vote on ship
subsidy in the Senate at this ses-
sion.
Even if the tariff bill is finally
cleared by the time the House pass
es the subsidy measure along. the
Senate will balk at any final action
until after the ballots Nov. Z indi-
cate the direction and violence of
prevailing political winds.
The aim of the subsidy bill. off,
ciaIly entitled "a Bill to Amend and
Supplement the Merchant Marine
Act of 1920" is to get the govern
ment's vast merchant fleet into pri-
vate hands and into the business OF
carrying world commerce.
But the senate, taking the view
that there isn't an over-abundance
of commerce requiring shipping just
80 49, ALNro &c n v,nfionoh tGa
volume of political dissatisfaction
and Unrest, believes nothing will be
lost but much gained by proceeding
with caution.
What Bill Provides
The subsidy bill would provide for
the American public, through direct
and indirect tribute to American
ship operators. paying whatever
sums might be necessary to give
operators minimum annual profits
of 10 per cent.
Vessels now owned by the govern
ment would be sold to private OPP
orators under terms allowing fifteen
years to complete payment with four
per cent interest on unpaid balances.
A loa fund of $125,00O,0 600 would
be established from which private
shipowners could borrow two-thirds
of the money necessary to build new
vessels.
Such loans would be made for
fifteen years and two per cent an
nual interest.
Owners of American merchant
vessels, in computing ne" income for
taxation, would be permitted to de-
duct a sum equal to the income de-
rived from operation in foreign trade
nravridal thau invnSt double tho
amount of the resulting saving in
taxes in building new vessels in
American yards.
\ Shipping Board Function
The direct subsidy provision of the
bill authorizes and directs the Ship
ping Board to enter into contracts,
en- behalf of the United States, for
the payment of compensation to YES
sells owned by American citizens and
under American registry.
Contracts may run for periods of
10 years, and the government pay
ments would be made at least every
six months. The amounts paid would
be based On the speed and tonnage Of
the respective vessels.
Regardless of speed, one-half cent
for each gross ton for each 100 miles
is proposed. In addition, vessels ca
pable of IL knots an hour or more
would be paid an additional sum in
proportion to speed, up to two cents
a gross ton on every 100 miles for
vessels of 23 knots or over.
How Much 1t Costs
What this would mean may be in
Dictated by computing what Uncle
Sam would pay a fast 10, 000-ton car
rier between New York and Flu
ropean ports.
At the maximum rates, such a
vessel would draw two and II half
cents a gross ton on every 100 miles.
On the 3000-mile trip to Europe, a
fast 10000 ton ship would earn in di-
rect subsidy $3.50 a mile, $500 for
the voyage over, or $155,000 Cor the
round trip.
1t is the reaction of the American
taxpayer to these figures that has
House and senate members Uneasy.
Subsidy" it is generally agreed,
has an unwelcome sound to most
American ears. For that reason, IA
spite the fact that it is a pet ad-
ministration measure, there will be
no haste in pushing it through.
For the same reason, it is insisted
M should not speak of Subsidy"
but of direct and indirect laid" to
the American merchant marine.
But how much laid" if any, Con-
gress finally will grant will depend to
no small degree on what the people
who will pay the bill, say when they
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