The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-02-28
Measure Jointly introduced Has
Harding's Approval.
ALSO AIDS NATIONAL DEFENSE
''TO Promote Foreign Com
merce" One Angle of Bill.
President Tells Both Houses
Why He Wants Subsidy.
PRESIDENTS SPEECH
ON PAGE 4.

Washington. Feb. 2S.-The admin
istration plan for government aid for
the American merchant marine was
presented TO congress today by Fresi-
dent Harding with the declaration
that the influence of the United States
in world councils is sure to be meas
Ured by that unfailing standard which
is found in a nations merchant ma
rine."
The president detailed 10 the two
houses assembled in joint session the
war time creation of Americas grest
tonnage-an experimental venture as
he described it.and then he added
Private Initiative Needed.
Having failed at such enormous
cost, bring you the proposal which
contemplates the return to private in
it.ative and private enterprise. aided
to a conservative success, wherein we
are safeguarded against the promo
tion of private greed, and do not dis
courage the hope of profitable invest
ment, which underlies all successful
endeavor."
A ship subsidy. estimated at ap-
proXimately S32.00000O annually to
be provided for principally by the di-
version of 10 per cent of the nations
customs receipts, would be paid to
the owners of American ships engaged
in foreign trade under a bill intro
duced today in the senate and house
The measure Incorporates a subsidy
plan proposed by the shipping board
and endorsed by President Harding IN
the message read today to a joint Sos
| sion of the two houses.
Would Aid Defense
Introduced in the senate by Chair
! man Jones of the commerce. commit
tee, and in the house by Chairman
| Gronna of the merchant marine com
mittee. the bill sets forth that the pur-
pose of direct subsidy provision is ito
aid the development and maintenance
/ of the American merchant marine to
| promote the growth of the foreign
/ commerce of the United States. and to
/ contribute to the national defense"
ether provisions of the bill would
| authorize the creation of a "construc-
| tion loan fund" to be administered by
! the shipping board. and derived from
| the sale of its vessels, in addition 10
| operating revenues and requires that
not more than so per cent OF the num-
| ber of aliens admissible to this coun-
try In any one year be transported in
| foreign bottoms.
For a Naval Reserve.
1t would authorize tie payment Of
an additional months pay annually TO
officers and men of the merchant ma
rine who shall enlist in the merchant
marine naval reserve" which the bill
would establish as a component part
( of any reserve force of the United
States navy. By amendment Of sec
/ ton of the merchant marine a ct OF
! 1920, the shipping board would ''be
| authorized and directed 10 sell its
ships "as soon as practicable. con-
! sistent with good business methods" TO
citizens of the United States.
! The base subsidy base rate provided
! for all vessels either sailing or Of 1000
| gross tons or more. regardless OF
| speed, "is one-half of / cent per gross
/ ship ton per hundred nautical miles
! travelled"
Allowances To Be Prorated.
All power driven vessels between
that tonnage and 5000 tons gross
would receive the rate applying to the
latter displacement. For vessels capa-
/ BILE of a speed of 13 knots or more
additional allowances would be pro-
vided ranging from two-tenth of one
4 cent to two and one-tenth cents for
vessels with a speed of. 23 knots or
more
The shipping board would be au-
| thorized to increase these rates up TO
double their amount whenever 1t shall
I determine that the base rate is insult
ficient to induce the operation Of lines
where the establishment and mainte-
| nance of service is considered neces-
] sary to promote the nations welfare"
| Similarly it would be permitted 70 re-
| duce the base rate under special cir
| cumstances.
Philippine Trade Foreign
Trade between the United States
and the Philippines and the Virgin
Islands is defined for the purpose OF
the bill as foreign trade. The defini-
ton of such trade includes that on
the Great Lakes, as well as trade be-
tween the ports in the United States
and ports in foreign countries where
the distance between the vessels last
port Of call in the one and the vessels
/ first port of call in tf1s other is less
than $50 miles.
i States Revenue Sources.
The bill provide that where net op-
/ Grating income derived by an owner
from vessels receiving the subsidy
,. benefit exceeds 10 per cent in any
fiscal year, so per cent Of such excess
shall be paid to the shipping board to
be placed in the merchant marine fund
from which the subsidy would be paid.
altho il is stipulated that this shall
not exceed the total amount Of COM
pensation received under the proposed
u law
In addition to the 10 per cent d.
version of customs receipts to create
this fund. the bill provides that II
shall be derived from port tonnage
I duties taxes or fees. which would be
doubled under the bill. and also the
amount that would otherwise be pay
able by the postoffice for the trans
portation Of mails which any ship con-
tracing for the subsidy would be
obligated to de. under specific condi-