The Birmingham age-herald., 1922-05-25
By HUGH ". ROBERTS Washington Bureau. The ARe-Herald.

800 Davidson l3uildinss.
 Washington, May )- Government aid is essential to the creation and maintenance of mer- chant marine, is formally ex- pressed opinion today by Frederick |. Thompson of Mobile, who as commissioner of the United States shipping board represents the gulf region of the United States.
 Mir. Thompsons statement was made for the consideration of the Senate committee on commerce, which is holding hearings on the so- called ship subsidy bill which the President insists must be enacted before an adjournment of this ses- sion of Congress.
 The democratic members of the shipping board, inclusive of Mir. k Thompson, support the subsidy bill. The question, according to MT. Thompson. is whether the people shall pay the subsidy or suffer for eign ships to bear Amarican cargo.
 Must Maintain Marine
 His statement in part follows:
 No preconceived view or inherited or acquired political opinion can ob- seure the self evident economic fact AARN Nit 9biltA pAdltH liiuSl SuPpOiA or establish and maintain a merchant marine or permit the ships of other nations to be carriers of our cargo. Nor can that mandate in the enact ment clause of the merchant marine act. providing for an American flag naval auxiliary be fulfilled without some form of government aid.
 If American cargoes are to be carried in American ships and naval auxiliary for the protection oi the nation in any national emergency is to be obtained, the fact is inescap. able that certain differentials now existing in favor of foreign shipping must be capitalized. Opportunity must be given the American flag operator to meet, on terms of competitive equality, the ships of those nations who zealously guard. foster and sup port their merchant marine.
 To Support Navy
 If the economic aspect may per- init divided opinion, there can be no divergence of view that the navy's first line of defense must be sup ported with an adequate marine aux Hilary, without which the navy will fail to maintain a proper ratio of strength. The provision in the ner- chant marine act that places this measure of obligation upon the com missloners Of the United States ship ping board is a solemn responsibility Whatever may be the economic view that we could be content that other nations can be the ocean carriers for the United States, although I am em- phatic against such opinion no whole hearted American should be other than militantly aggressive for a merchant marine that will be the strong right arm of our nayy's de- fense in time of national emergency.
 Tt was in appreciation of these portentous issues prompting intimate study and recommendation by the United States shipping board to the President and to the Congress, and from this recommendation was born the legislation now pending to so amend the present law as to provide direct financial aid to private opera tors of American flag ships when. and if, preferential treatment there in provided proved unavailing to sus- tain our vessels on the seven seas. This supplemental legislation pro vides. in practical effect. that only when preferential treatment in the form of indirect aid proves made ouate to sustain American flag ships in competition with the ships of other nations. that the direct aid be- comes operative. When direct aid becomes operative, through any fail- ure of the indirect aid provisions to provide a normal and reasonable re- turn upon the capital investment of the American operator, 1t ceases when such condition is secured and