New-York tribune., 1922-12-04
Ship Subsidy amendments Fail
To Destroy Value of Measure
Most Important Features Remain Despite Efforts OF
Opponents to Hamstring Bill; Senate Commit
tee to Report Text Practically Without Change
By David S. Kennedy

proximatsly Sl.OOO.OOO n year 10 the
/ general subsidy fund and requiring the
! mails 90 be handled free, was a dis
tinct gain FOR tho steamship COM
panics. II was an Amendment approved
/ BY the Postoffice Department and the
ship owners. The general subsidy fund
/ IL depleted By that amount, but ac-
/ cording 20 estimates made by the
board there Will be more than enough
I derived from other sources to take
care of Z contracts for some time 70
4 come. Ine net result, therefore, VIII
7 be to Increase the revenues Of the last
passenger and mail liners. In putting
I In this change Representative Edmonds
/ declared that the purpose was TO pro-
vide additional funds as reeompense
! for the losses caused by prohibition.
/ Even opponents Of the bill, with their
questionable sympathy for the mer-
! chant marine, let this feature pass
without strong protests. The fost-
Office Department will continue 20 pay
on the pound instead Of the contract
basis.
Another amendment sponsored BY
| Representative White, OF Maine, ex-
tends the subsidy 10 sailing vessels OF
500 tons OF over, thus reducing the
minimum from 1000 tons. This does
not materially increase the subsidy
| payments. and, IN fact, will reach only
few Of the smaller sailing ships.
Sale Of Ships Hampered
A tempest in a teapot was aroused
over the proposal Of the bill 20 allow
the shipping Board 60 sell ships "at
public or private competitive sale" IL
was tho contention Of the opponents
that this would enable the board 20
hand out choice vessels at secret deals
TO favored interests. Little attention
was given 70 the argument of the board
that frequently sale IS lost because
a prospective purchaser can not or WILL
not wait until tho tedious delays Of nd
vertising and receipt Of bids are car
ried out. The elimination Of the per
mission 20 sell at private auction with
out advertising does not affect the
steamship industry. IL merely hampers
tho board In disposing Of the ships.
Two other amendments we're without
practical significance. One Of these.
which Is already in existing law, pro-
vides that no official Of tho Shipping
| Board shall be interested as a vendcc
/ I'm any sale Of government vessels Tho
I
which are allowed 70 own vessels IN
( foreign trade, may not DO permitted
10 own ships excessively In river or canal
traffic. Steamship men, who do not re-
gard railroad ownership with partic-
ular favor, will not regard this change
with regret. In summary, IL may be
said that the bill Is substantially as
strong ss il was before. The total sub
sidy 10 unchanged, and most of the
benefits for cargo and passenger ships
remain.
The fact that only three or four I'M
portant amendments we're carried was
a distinct victory for the Administra-
: tion forces and for President Harding
personally. The President insisted and
won in the face Of determined opposi-
tion not only among the Democrats
but within his own party.
Seventy Amendments Rejected
In estimating the extent Of this
victory IL must be remembered that
the opposition offered no less than
seventy amendments, many Of which
would have scuttled tho bill. These
were rejected uniformly by majorities
that varied according to the number Of
members voting. Among the more i'm
portant sections which weathered the
storm may be cited the following;
The subsidy fund remained un-
changed, with the exception Of the mail
payments 10 be applied directly. This
Is TO consist Of 10 per cent of the tariff
receipts, the total tonnage dues and
taxes and the return of excess profits,
estimated to amount TO about $4,000
900 q year. The basic rate Of compen-
sation, with additions for speed, re-
msined the same.
Income tax exemptions for ship
owners and builders stayed intact
These permit the investment Of funds,
which would otherwise be paid for
taxes. in new construction IN Ameri-
can yards.
Fifty per cent Of immigrants 70 the
United States are required 70 travel
IN American vessels, and the President
is directed 70 negotiate changes IN any
commercial treaties which may conflict
with this provision. IL Is not antici-
pated that there will be any difficulty
on this ecore. Before the war for
eign lines divided the immigrant Srade
among themselves without protest from
this or any other government. The
United States now seeks TO do some OF
the dividing for its own merchant
marine. This section is one that had
been most feared by alien shipping
concerns. II Is expected 10 give Amer
lean liners the backbone of a profit
able passenger traffic.
Regulates II. X. Contracts
Another feature Of considerable ad-
vantage to the steamship lines on the
Pacific Coast particularly is that au-
thoriting the President 20 extend the
coastwise laws TO the Philippines and
20 discontinue army, navy and Marine
Corps transport services In favor of
private companies. The Shipping
Board also gets authority to abrogato
all contracts between railroads and for
, eign ship lines for the preferential in
! terchGnRe Of cargoes.
b American citizens among the crews
Of ships will benefit from the require
ment that after three years two-thirds
Of the employees shall be Americans.
At present the proportion Is about. 40
10 90 per cent. The increase will pre-
sent some problems TO the steamship
lines at fret, bat IL is expected that Il
the merchant marine grows 70 larger
proportions. with some assurance that
10 will provide careers for young men.
there will be no lack of available re-
cruits. With enactment Of the subsidy
bill the steamship companies will
expect to pay higher wages and, in
fact will be compelled 20 do 40 70
secure the necessary compliments for
their crews.
An item Of considerable significance
20 the ship repair companies Is the re-
quirement that repairs on subsidized
vessels must be made In American
yards. The Importance Of this section
is much greater than that which was
slipped into the tariff act providing a
| duty Of so ner cent ON all rrnrk or.