The labor world., 1922-04-01
ll|l| SUBSIDY BILL BRANDED rs
q BIG STEAL ON FLOOR OF: HOUSE
,es Selling Vessels at Te nth Of Cost and Paving Direct
lsay Cash Subsidy Of $50, 100000 Says Congressman
!. 49, Davis; Predicts Protests From People.



suld not stand for the proposed
~ subsidy bill introduced in both
Asses of congress following the
J. sident'a recent message on that
sJect, Representative Davis of Ten
see bitterly attacked the project
the house, said Mr.. Davis:
Even if the proposed subsidy leg
tion Is enacted and the ships are
n sold for $500, 100000, how
-3lld the government come out?
I act provides that the vessels may
sold on not exceeding Is years.
se, and it may be reasonably in
led that most, if not all, Of the
lcha$ers would purchase on the
8 Of the time limit. In addition
INDIRECT subsidies. 1t is proposed
81, 600, @ 900. '
us years the direct subsidy
ald amount to $450,000,000. In
Il words. it would involve SELL
Nrhese vessels at the outset for
than one-tenth Of their cost and
one-third or one-fourth of what
l. value would have been in nor
times prior to the World war or
!; v,hst their market value will be
N conditions and prices again
nne normal, and then in the form
direct subsidy we would be pay
the purchasers all that they had
.racted to pay for the ships and
100000 as a clear net bonus.
lis bonus would be paid twice as
dly as their purchase payments
ltir accrue. In other words, the
litous proposal would amount to
'lAtely giving away our entire
4: fof 1,448 steel vessels, besides
2N6 wood and concrete vessels,
then giving the private owners
rect subsidy Of $250,O00,000 ad-
nal besides indirect subsidies.
- lOt believe that even this con-
s,will stand for any such propo-
nj I am sure that the American
'la will not"
view of the low price at which
proposed to dispose Of Ameri-
enormous merchant fleet, what
Davis had to say concerning the
aGter and quality of the ships
et sold is of great interest.
ana aware" he said, that there
been much propaganda and mis-
esentation as to the character
tAlIality of our ships. However,
Tact that our war-built vessels
@1Eaceived the 100 Al classifi-
ia from Lloyd's Register of ship
proves that our work is fully
oi the standards Of the British
~ I cite British yards specific
because their workmanship has
Tvs been accepted as the world
Ist'd: Lloyd's is q British organ-
81 and it may be fairly inferred
nsyA would not give our vessels
higher rating than is justified"
Il this connection the following
CsfMialogue is interesting:
~ Oliver: Is it not a fact that
,ofesent chairman Of the board,
+ HE took charge, in every pub
lItterance has deprecated the
u of these ships?
iE1 Hardy of Texas. The present
Han of the board in every ut
80 Ade to the public has depreciat-
.e',vAlue of these ships. and says
Ills no market for them. He has
so time and again.
lOliver: And by that he de-
ates them the more.
:. Clarke of New York: Do you
the chairman of the Shipping
i told the truth and stated the
fairly?
Hardy of Texas: That there
no market now?
=. Clarke of New York: Yes.
/. Hardy of Texas: Yes: and so
}Ir. Farrell and so did Mr.. Piez.
nix we all know that if these
are put upon the market now
sans they are to throw them
London: A trustee would not
rmit4ed by court to sell the
on a flat market.
Hardy Of Texas: If trustee
q sale and you would show
H4iitions to the court, the
'sld set aside the sale. 1t is
lie as If the government is
"a and has to save something
80 fwreck and ruin
ssssman Hardy OF Texas con-
1TIe attack on the subsidy bill
~ tae APPLAUSE of the house de-
,.1lat the measure was steal.
s .s up to this administration"
MI. Hardy, cit is up to congress,
- ,p to the ingenuity Of American
tmanship to show that they
some ability to handle diff
question. In the Jones act of
we made provision that where
!, were desirable lines for our
,erce to enter into it We could
et private capital to buy the
we would try to charter the
. to run them on that line, and If
1ld not charter them to private
t. then the government would
e,m itself. Now, it may be at
:, at sacrifice. But, in my
IN, if the policy Of the Jones
followed out in that respect
i'll start the lines where there
the greatest promise Of sUc-
Ind as we get a line in success
oerat ton private capital will
and ask for the ships, and you
I'll the ships as you get the op-
lity Ito sell them at fair value;
lis great property belonging to
nit&d Statec instead of being
najway, will result in opening
IA commerce of the United