The Connecticut labor news., 1922-03-24

Washington, D. C., March 24.- comes law it will be possible for firm States Shipping Board to buy shippi years without making any payment the same time drawing government ting income tax exemption on the frel The bill proposes that ships be turned over by the board on credit, the government taking d mortgage ''at not less than per cent interest" on the vessel and requiring no fur. ther security. If five members of cess the sale of vessels may be con sumated without advertising.
 No initial payment for vessels
 is demanded in the bill and all
 payments of both interest and
 principal may be deferred for
 fifteen years.
 Under similar easy terms 1t Is
 proposed that the Shipping Board
 shall loan money for condition
 ing and improving (motorizing).
 Thus, ships may be bought, con
 ditioned and motorized without
 the payment of cent to the gov
 ernment for fifteen years.
 The language of the bill regarding terms is that such sale shall be made at such prices and on such terms and conditions as the board may pre- scribe, but the completion of the pur- chase price and interest shall not be deferred more than IS years.
 Labor Sections Vicious; Financial
 Parts Equally Bad.
 l. has already been shown that the labor provisions-embodied in the immigration and naval reserve sec tions of the bill-are vicious, but analysis shows the financial sections to be equally impossible of support.
 The ships to be sold cost approxi- 1rlately $2oo per ton to build. They will be sold at prices ranging from $40 to $50 per ton. Chairman Las ker of the Shipping Board says the best ships will bring $50, Then, on government loans, they may be mo- torized and conditioned. It is esti mated that when conditioned and motorized, and in view of the pro- posed subsidy and income tax ex- e1nption on earnings, they will be worth, in earning capacity, from $50 to $Ioo per ton, and perhaps more. All of this value will be created for prospective ship owners by govern ment credit and munihcence.
 There Is to be provided for the Shipping Board, under it's absolute control, without any limitation of au- thority, fund of SIPS, ,ooo to be used as a construction fund and an eother fund of from $4o,ooo,ooo to, 800, ,ooo,o 900 per year out of which to disburse subsidies to the future gov ernment-made shipping magnates.
 The construction fund will be raised by sale of bonds, possibly Lib erty bonds, state and municipal bonds, now held by the Shipping Board The revolving fund out of mhich subsidies are to be paid will be raised, for the most part, by the simple expedient of side-tracking inn port duties and partly from the sale of ships, if anybody actually pays for a ship Within I5 years.
 Fast Ships Get Cream Under Amaz-
 ing Provisions.
 The amazing provisions for loan ing money and for raising the money to be loaned are cqualled only by the provisions for paying the sub sidy itself.
 The subsidy itself is in two major parts, each having subdivisions. First there is the cash remuneration Second, there are various income tax exemptions for, ship-owners and ship ipers, and provisions inside of pro- visions for getting more easy money from the government.
 For cash remuneration there is a basic compensation and an addi- tional compensation. To all vessels documented under U S. laws and of over I,5oo gross tons, capable of I3 knots, there is to be paid a basic compensation of one-half cent per gross ton per 100 nautical miles.
 Added to the basic compensation is the additional compensation, ranging from two-tenths of a cent per ton