Middletown transcript., 1922-04-15
SUBSIDY COST PUT
At s52,000,000
Lasker Tells Committee Meas.
ure Requires That Sum
CANNOT VALUE INDIRECT AID
Ship Board Head Declares Enactment
OF Bill Would End Heavy An.
nual Loss-lncome Tax
Deductions.

Deductions.
Washington.-Esta of a
privately owned merchant marine
through Government aid, as proposed
by President Harding and the Ship
ping Board, would necessitate a max
imum Treasury outlay of $4,000, 900
annually, Senate and House commit.
tees considering the Ship Subsidy bill
were told by Chairman Lasker, of the
board. Enactment of the legislation,
however, would put an end, he con-
tended, to the $5000O,OOO yearly loss
the Shipping Board is sustaining in
operating its vessels.
Pressed by Representative Davis, of
Tennessee, e Democratic member of
the House Merchant Marine Commit
tee, for an estimate of the probable
cost Of the Administrations program.
Mr. Lasker gave general totals with
an explanation that experts would
give details later
Suggesting that the chairman's esti-
mate did not take into consideration
indirect aids" provided for in the bill,
Mr.. Davis asked what their money
value would be.
ITS useless to try to estimate" Mr..
Lasker replied, adding that funds for
indirect aids" would not come from
the Government. Instead of increas.
ing the burden on the Treasury, he
held, such aids would help increase
the revenues of shipping companies
which, under the bill, would be re.
| quired, when their net return exceed
ed 10 per cent, to turn half the ex.
cess earnings back to the Govern.
ment until the full amount of the sub.
sidy was returned.
In computing $52,000,000 as the
probable Government expenditure for
direct aid Mr.. Lasker said he al.
lowed for conversion into the mer.
chant marine fund, S30,0O0,O00 to be
derived from customs receipts, $4,000,
600 in tonnage dues, s5,000,000 nov
paid for transportation of certain
classes of foreign mails and $3,O0O,OOO
in construction charges.
Accounting for the remaining $10,-
100000, the chairman explained it was
expected that deductions amounting to
this figure would be made in income
taxes payable by shipping companies
The bill provides for such deductions
While passage of the bill would re,
quire an expenditure Of $52,0000OO a
year at most, the added burden on the
Treasury, the chairman said, would ap
proximate $47,0O0,00O, as the Govern
ment now expends s5,O0O,OOO of the
amount which would be turned into
the merchant marine fund for trans
portation of foreign mails. Under the
bill vessels of companies receiving
the Government subsidy would be re
quired to carry the United States
mails, except parcels post, free oi
cost.
Mr.. Lasker said that the maximum
he quoted would be expended only ir
the event the bill Operates success
fully" and even then probably not be
fore five years.
Questioned as to the advisability o.
disseminating army and navy trans
port services the Shipping Board heat
explained that the bill would permit
the President to abolish them by ex
ecutive order. The subsidy program
calls for such action. Private ship
ping companies would handle ocear
troop movements, the fees received
for such service comprising one of the
indirect aids" provided for in tn,
bill
Representative Edmonds, Pennsyl
vania, Republican member of thu
House committee, remarked that al
investigation of the transport ques
tion had revealed that, compared will
commercity rates, it was operated at
loss of between $4,000, 900 and 5000
900 annually.