The Washington herald., 1922-08-24
HARDINCDR
FIGHT TO FORCE
SHIP SUBSIDY
Bill to Be Sidetracked
For This Session Of
Congress.
PROHIBITION ISSUE
Tax-Exemption Clause
Retards Concord of
Bills Proponents.

President Harding has yielded to
sentiment of his leaders In the
House against attempted passage
of the ship subsidy bill at this ses-
sion.
And, in SO doing. he completely
withdraws from his originally ex-
pressed Intentions, namely. that II
the subsidy measure failed of action
by this Congress he would be COM
PEELED to call an extra session to
consider 1t.
A Letter written by the President
to House Leader Mondell yesterday
voiced his willingness to let the
measure 60 over. in response to ur-
gent desires of House members. who
did not relish 1t either as a cam
pafgp issue or as an obstruction TO
a prompt recess which would permit
Of further campaigning before cleo
tion day.
Reasons for Captivating.
His reasons for capitulating were
as follows:
1. Diminished attendance in the
House"
2 New complications which have
arisen" in the form Of the prohibit
| ton issue-sale of nquor on Ship
ping Board vessels.
3. The storm developed around
the tax-exemption provision of the
bill. which would provide indirect
aid to ship owners.
| Il am frankly disappointed" the
| President wrote Mr. Mondell, "tha,
circumstances have been combined
| to make a difficult situation.
venture to express the hope that
| we may have favoraofe action be
fore Congress gets too deeply en-.
gagged in the pressing legislation
which must be considered in the
short session." the session which
begins in December.
Text Of Presidents Letter.
| The Presidents letter to MI Mon
dell follows:
81 have your note conveying the
reluctance of yourself and your as.
sociates favorabel to the bill to aid
American merchant shipping &c
bring the measure up for a vot.
In the prevailing situation In the
House. am frankly disappointed
that the circumstances have com.
bined to make a dinicult situation
due on the one hand to the dimin-
ished attendance in the House. am
chargeable, on the other hand. to
the new complications which have
arisen. 1t would be folly to ignore
the development Of the prohibition
issue which came up so unexpect.
cdly, and we must face the ract thar
the friends OF the bill must har-
| monize their views to accord with
| both the Constitutional amendment
and the public opinion on this sub
ject. Moreover. the same friend;
of the measure must reach a con-
cord in the matter Of the favorins
provision carried in the tax exemp-
tion section. which was designed tc
provide an indirect aiG TO American
shipping enterprise.
! Other Matters Interfered.
Il need not tell you that but for
the engrossment in the Industrial
situation I should have long sincs
invited conferences looking to ar
agreement on these problems / am
SO earnest about the passage of this
measure, l think II so important II
furthering our commercial good for.
tunes and SO essential to our self
depen endence and our national defense
that 1 had much rather the bill
should await consideration until we
can rivet the attention of Congress.
with full attendance than teopar.
dize Its success by pressing for ar
Immediate decision. venture I,
express to you in this way the hope
which l have previously uttered
that the administration may find :
way to deal with these new diff.
culties with the approval of al
supporters Of an American Merchan,
Marine, and that We then NAV have
favorable action before the Congress
gets too deeply engaged In the
pressing legislation which must bs
| considered in the short ,a.sion,