Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-03-01
Bill Provides for
Ship Subsidy Through
Part Customs Receint.

Fart Customs Receinte
Washington. Feb. 2S--A shin ~
sidy estimated at approximately ss ~
100000 annually. to be provided -
principally by the diversion a, "
per cent. OF the nations customs :. /"
ceipts. would be paid to the ovn...
of American ships engaged IN n.
eign trade under q bill introdus.,
today in the Senate and House. n.
measure incorporates a subsidy Ma
proposed by the shipping board a,a
endorsed by President Harding IN |.
message read today TO a Joint n,
sion OF the two houses.
introduced in the Senate by Cha.
man Jones Of the commerce comm,
tee and in the House by Chairms,
Greene Of the merchant marine com
mittee, the bill sets forth that N,
purpose of the direct subsidy nm
vision is to laid the development Ana
maintenance of the American msr
chant marine. to promote the grown
Of the foreign commerce OF the Uni.
ted States and to contribute to ths
national defence"
Other provisions Of the bill won,
authorize the creation of "ccr.
struction loan fund" to be admin.
istered by the shipping board and
derived from the sale Of Its vessel,
i'm addition to operating revenues
require that not more than 30 DC,
cent. of the number Of aliens adrIs.
sible to this country in any one year
be transported In foreign bottoms
and authorize the payment OF an al.
ditional months pay annually to Off.
GERS and men OF the merchant ma.
rine who shall enlist in "the mer.
chant marine naval reserve" which
the bill would establish Us a compo.
nent of any reserve force of the Uni.
ted States Navy.
BY amendment Of section FIVE o!
the merchant marine act OF 1920. TIE
shipping board would be authorized
and directed" to sell its ships as
soon as practicable. consistent with
good business methods to citizens o.
the United States.
The base subsidy rate provided for
all vessels either sailing or OF 100
gross tons or more, regardless p
speed. lis one-half of one cent PEI
gross ship ton per hundred nautica
miles travelled" All power drivea
vessels between that tonnage ani
five hundred gross would receive
the rate applying to the latter di'.
placement Gor vessels capable Of a
sneed of IS knots or more additiona
allowances would b, provided, rang
ing from two-tenths OF che cent 10 tvj
and one-tcnth cents for vessels with a
speed of 81 knots or more.
The shipping board would be author
lied to increase these rates up to dou
bic their amount whenever Il sinai
determine that the base rate Is insut
ficicnt to induce the operation Of lines
where tho establishment and maln,e'
nance of service is considered necss.
sary to "prcmote the nations We
fare" Similarly II would be permit
;cd to reduce the base rate under siSI
c,ai circumstances where II was con
sidered desirable.
Trade between the United States
and the Philippines and the Nirsi-
Islands is defined for the purpose 9.
the bills as foreign trade. The de-
nxCftdEc that ~
the Great Lakes as well as trade BE
tween ports in the United states az
ports in foreign countries where TX
distance between the vessels last pc''
Of call in the one and the vessels nrs
port of call IN the other. is less ina
$50 miles"
The bill provides that where net on
Grating income derived by an owaI
from vessels receiving the subsid
benefit exceeds 10 per cent. in any vs.
cal year, 80 per cent. of such excess
shall be paid to the shipping hoard q
be placed in the merchant marine fu1I
from which the subsidy would he pa'
although it is stipulated that ug
shall not exceed the total amount y
compensation received under the pr
posed law.
In addition to the 10 per cent. Dive
sion of customs receipts to create ,a'
fund, the bin provides that II shall \
derived from port tonnage duh'
taxes or fees. which would be douol' /
under the bill. and also the amoul'
that would otherwise be payable "
the post office department Tor ~
transportation OF mails. which nv
ship contracting for the subsidy woa
he obligated to do under specified cow
dtions.