Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1922-08-17
ARTICLES.

One OF the greatest problems the
present Administration faced, at its
inception, was the necessity. as Gov
cred by previous articles, for liquidat
ing the Government owned fleet so
that it would pass into private hands,
end the loss of Government operation,
cause the creation of a privately
owned feet that would be rightly bal
anced for war and peace-time needs,
and insure at the same time that the
art of shipbuilding in America be
kept alive in face of the ten-year naval
holiday
The President has proposed to the
Congress the enactment of a series of
aids that will put American shippers
on the same basis with Great Britain,
whose costs are next highest to ours;
feeling that if we put ourselves on a
parity with Britain, the ingenuity OF
America will conquer all other OBJ
tacles
The bill proposes direct aids to
ships in the form Of a cash subsidy,
which, it is estimated. if we should
ultimately develop the 100000 gross
tons needed to carry half of the over
seas trade Of America, will cost the
national Treasury approximately $780,
100000. Should we reach that point,
the losses Of $50,600,000 per annum
now incurred in the operation Of the
Shipping Board would long before
have ended.
Could Sell Present Fleet.
In addition, the bill proposes certain
indirect aids, one of the chief being
a deduction from income tax equal to
five per cent. of the moneys paid in
freights. The purpose of this provi,
sion is to insure fuller cargoes.
The bill proposes loan fund OF
1926, goo, 900 at two per cent. minimum
interest to aid those who would build
types of ships we still need. Without
the passage of the proposed bill and
this feature, the art of shipbuilding in
America will wither and die.
The desirable tonnage owned by the
Shipping Board under the proposed
bill will be disposed of at world mar
ket prices to American buyers, thus
aiding the buyers to escape the handl-
cap Of initial high cost.
The Government believes that in
addition to the vast sums that Will
come to the Treasury through the
sale of the ships (Which it feels can
not be sold without this legislation),
the curtailment Of operating loss will
more than offset the subsidy charge.
Tt is proposed that fifty per cent. Of all
immigrant traffic come in American flag
ships This provision alone will insure
volume of business in the North Atlantic
that should give Us a large growth In our
third class passenger business.
Aid Based On Di1erential.
The bill proposes that when proper IA
cilites exist, the President may end the
Army and Navy transport, contracting for
our military transportation with privately
owned ships
Looking forward to closer ordination
between rail and water transportat1on-a
very basic essential toward the expansion
of our trade-the bill proposes scheme
for bringing nearer together the Interstate
Commerce Commission and the Skipping
Board on subjects of mutual interest.
The subsidy to be paid our ships is COM
puted on a differential based ON comb1-
nation of speed size and distance covered,
thereby encouraging the building of heet
that shall be balanced for peace and war
time Durposes alike. The basic subsidy
provides that every vessel of the United
States entitled to direct aid shall receive a
sum equal to one-haf cent per gross ton
for each hundred miles covered. and in
creases with each knot, until at twenty
three knots and over the ship shall receive
&c cents per gross ton. In the discretion
of the Shipping Board where essential
lines ars needed and the subsidy proposed
in the bill is not sufficient, subsidy up
10 double the amount provided for in the
law may be allowed
No ships getting the subsidy are to be
paid for carrying the mails: the compen-
sation they would customarily receive will
go to the subsidy fund.
The subsidy fund is to be derived by re-
serving ten per cent. of the moneys col
lect Sex& duties a revolving fund.
No Profteering Possible.
A limitation of profits is proposed by
the Government which while on the one
hand forbidding profiteering, ON the other
hand insures no diminution in the inspira-
ton Of initiative and the consequent attrac
ton of the necessary capital. This Is ac
complished by a proyiso that after ship
has earned ten per cent on its aDftal, half
of the earnings shall be returned to the
merchant marine fund until the full amount
of the subsidy shall have been repaid.
In these articles / have briefly under
taken to sketch the history of Americas
rise and decline on the sea and the admin
istration's plan to restore our merchant
marine.
If any have a better program to offer
the Government with an open mind will
be glad to consider it. If no one has a
better program to offer, then there are but
two alternatives: Either adopt the Presi
dents proposals continue the ineffi
cheney and loss of Government operation
No. there is still another alternative; and
the Govern nent's operation and make ar
engagements to sell the fleet abroad or scrap
it. II this latter alternative were ordered
by Congress, there Is no doubt, to my
mind, that within only a few weeks all
America would realize the utter necessity
of its merchant marine for It's needs and
a unanimous cry would go up throughout
the country demanding Of the Congress
that the ships be put back into service
The farmer, the manufacturer, the miner
alike, would find freights higher, Olivier
les more uncertain and business unsta-
bilized.