The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-11-04
THE SUBSIDY DRIVE.

II
ships, and homebuilt ships cost more
than foreignbuilt ships 1t is fact,
too, that unaided American ships can
not be operated indefinitely under the
American flag in foreign trade with
out in time bankrupting their owners.
1t might Just as well be known first
as last that il the United states re-
fuses 20 give substantial aid to Ameri-
can ships operating in foreign trade
they will be withdrawn from that
trade, or be placed under alien flags.
There is no reason why private Amerl-
cans should bankrupt themselves IN
order to maintain American ships
upon the seas.-American Economist
Neither is there any reason why the
American people should be taxed to
enable private Americans to do
profitable business. When an Ameri-
can railroad falls to hold its own in
competition with other lines 1t IS
placed in the hands of a receiver and
later sold to somebody with more
business ability. Why should ship
owners be singled out to be made
wards of the government?
Persons engaged IN industries other
than sailing ships fail IN business
every day, but few of them have the
nerve to call on the government to
help them out unless perhaps thru a
loan. This effort to brighten and in
timidate the people into being taxed
to maintain a private enterprise can
hardly succeed.
President Harding has definitely de-
cided to call congress into extraordi-
nary session on November 20, accord
ing to Chairman Campbell. of the
house rules committee Representa-
I At.
the extra session is to give needed
time for the passage of the ship sub
sidy bill, which has been pending since
last March.
The president, It is said has set his
heart on the passage of ship sub
sidy bill. The pending bill was framed
by experts brought to Washington by
the shipping board, and the latter or
ganization stands sponsor for the bill
which was introduced in the senate by
Senator w. L. Jones, chairman OF the
commerce. Committee. and in the
house by Representative w. S. Greene,
chairman of the merchant marine and
fisheries committee.
Months were devoted to the consfd-
Grafton OF tho bill by the two commit
huge volumes containing the ''testf
mony'' elected at those protracted
hearings. mostly in favor of the bill.
altho the few ship owners who spoke
stated emphatically that the amount
of the subsidy would not suffice to
overcome the extra cost to which
Americans are put in buying home
built ships and running them under
the American flag. The bill provides
a graduated subsidy based on speed
and distance sailed in foreign trade
to power vessels of 1900 tons or over.
or sail vessels of 1000 tons or over.
it provides a rebate of per cent of
the freight rates paid by Americans
on goods shipped in American vessels.
1t requires that at least so per cent of
the immigrants coming to this coun-
try come in American ships, and it
further provides a revolving fund.-
of 100000 at the disposal of the
shipping board for the aid of Amer
leans in the building OF new ships in
American shipyards for use in foreign
trade.
Perhaps one Of the most remark
able provisions of the ship subsidy
bill is that which permits the United
States shipping board, which has
charge of its enforcement. to increase
the subsidy provisions up to so per
cent, or reduce them to the vanishing
point, according to the Judgment of
the board as to the urgency of the
need of the aid the different ships
running over different routes require.
The shipping board is permitted, also,
to allow alien-built ships, if of a tyne
that the board thinks is needed under
our flag, during the first three years
OF the bills operation, to enjoy the
benefits of the subsidy. if owned by
American citizens
The carrying out of the different
provisions of the bill would cost the
United States 5000. 900 a year in the
beginning. and s5o,oOo,ooO or more a
year when In full swing.
There has appeared a formidable
Republican opposition to the bill in
each branch OF congress, but it is be-
lieved by its friends that this will
largely disappear If its consideration
is put off until Immediately after a
national election
Senator Borah is expected to lead
the fight against the bill among its
Republican opponents. On the other
hand IT is likely to receive the sup
port of some Democrats. notably SEN
ators Ransdell and Broussard, OF
louisiana These gentlemen are un-
der obligations to the majority party
for the tariff protecting Louisiana
sugar planters.