The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1922-03-15
CAPITOL CULLINGs

washington, March Ito aid
the average citizen to a correct I'M
Outstanding of President Harding's
plan for ship subsidy, or bonus,
under which II is proposed practi-
cally to give away our entire feet Of
merchant vessels with an added an
nual cash bonus, the following sum-
mary Of the main facts is given:
The merchant feet owned by the
government numbers LAS steel YES
sells and 276 wood and concrete ves-
sells.
AS to the character Of these YES
sells, James A. Farrell, President Of
the United States Steel Corporation,
in an address May, 1921, said:
THE steel ships were well con-
structed, and with few exceptions
compare favorably with the work Of
the best builders. Our steel ships
are fine samples Of the skill of Amer
lean mechanics"
These vessels have received the
100 Al classification from Loldy's
register of shipping, which means
that they are up to the full standard
of ships built in British yards.
These ships were offered for sale
on February 81, and bids are to
close on March IA. AS to the ad-
visibility of selling the ships at this
time, there is the testimony of Chair
man Lasker of the Shipping Board
last July, who said:
"You cannot give ship away to-
day. l mean that literally, if a man
must pay the cost of operation"
In the same hearing ]. B. Smull,
one of Chairman Lasker's experts,
said: "There is no possibility of sell
ing boats today at any price"
Chairman Madden of the House
Appropriations Committee declared
last August there is no chance to
sell the ship now"
A newspaper publication based ON
an announcement of the president OF
the Emergency Fleet Corporation,
says the government expects to net
100000, 900, or an average of $40
a ton, from the sales, which is less
than one-tenth of their cost and one
third or one-fourth of their value in
normal times.
The contracts for purchase pay
ments are to run fifteen years.
A direct cash subsidy of $30,000,-
900 annually is proposed under Pres
ident Harding's plan, which in if
teen years would amount to $780,
100000, or $250,00O,0O0 more than
the proposed contract price of the
vessels. The bonus would be paid
twice as rapidly as the purchase pay
ments accrued, so that the pur-
chasers would really be paying moth
ing, and O.. the same time receiving
a bonus for operating the ships.
There is also a tonnage tax bonus
of 100000 annually. proposed
reduction of income taxes on ship
ping corporations equal to per cent
the value of goods shipped under
the American flag.
There is also proposed a provision
for the establishment of S125,000,'
600 loan fund from which shipbuild
ers can borrow at 2 per cent or less
than half the rate of interest the
government is compelled to pay
when it becomes a borrower.
This plan is said to have the en-
thusiastic approval OF Mr.. Lasker
the we'll knwn advertising agent
who is chairman of the Shippinl
Board.
Commenting upon the Harding
Lasker proposal for disposing of oul
merchant ships, Representative Evil
L. Davis Dem, TENN, a membel
OF the Committee on Merchant Ma
rine and Fisheries, says:
well, suppose you could sell al
most anything under similar condi
tons"
Who will and who can bid fo
these ships?
Let Representative Hardy (Dem'
Texas, ranking minority member o
the Committee on Merchant Marine
and Fisheries, answers:
1.-The little man cannot. Only tn
big corporations that have their wei
understood gentleman's agreemen
can bid. There has been a tendenc!
to beat down the price Of those ship
almost from the day We first owned
them. II trustee made a sale ant
you would show these conditions Il
the court, the court would set aside
the sale. II is being done as II thu
government is a pauper and has t
save something from the wreck an'
ruin"
Republicans Deadlocked on Soldiers