Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-28

so recently colsed 1t was the inevita-
able reflex of the establishments which
follow great war and there We're heavy
losses in operations which had to be met
shipping lines and ships, built at top
war costs, took the slump in prices be-
low the normal levels of peace.
But we have our ships, the second
largest tonnage in the world, and we
have the aspiration, aye, let me say, the
determination to establish a merchant
marine commensurate with our com
mercial importance Our problem is to
turn the ships and our experience and
aspirations into the effective develop
vice without which there can be no as
surance Of maintained commercial
eminence, without which any future con-
hict alarms will send us building again,
wildly and eXtravagantly, when the
proper concern for this necessary agency
OF commerce in peace will be our
guaranty of defense in case that peace
is disturbed.
"Out of the story of the making of
great merchant marines and out of our
own experience, we sought to find the
practical solution. Happily we are less
provincial than we once were, happily
we have come to how inSeparable are
our carried interests.
Nobody pretends any longer that
shipping is q matter of concern only to
seas is quite as vital to the great in
terror as it is to our coast territory
East, South or West. Shipping is no
more a sectional interest than is agri
culture or manufacturing. No one of
them can be prospered alone
MIDDLE WEST WISHES
WATERWAY CONNECTION.
we have had new manifestation of
this broadened vision in the enthusiasm
Of the great Middle West for the proposed
(Irpaf TaEQS-St Law FOR bxy
which it is intended to connect the Great
Lakes ports with the marts Of the world.
There is far-seeing vision in the proposal,
and this great and cOmmendable enter
prise, deserving your favorable considera-
ton. is inseparable from a great merchant
marine.
What then is our problem? 1 bring
to you the suggestions which have re-
suited from comprehensive study which
are recommended to me by every member
OF the United States Shipping Board. 1t
is program of direct and indirect aid
to shipping to be conducted by private
enterprise. It Is proposed to apply gen.
orally the benefits which it was designed
to derive from discriminating duties to
all ships engaged in foreign commerce,
will challenge every charge of promoting
special interests at public cost.
In lieu OF discriminating duties On i'm
ports brought to us in American bot
all duties collected in imports brought
to US in foreign bottoms and create
therefrom a merchant marines fund. TO
this fund shall be added the tonnage
charge taxes and fees imposed on vessels
entering the ports of continental United
States; also such sums as are payable to
American vessels by the POstofflce De-
partment for the transportation by water
of foreign mails, parcel posts excepted.
PROVISION FOR
n
'Out of this fund shall be paid the dd-
rect aid in the development and mainten-
ance Of an American merchant marine.
The compensation shall be based on one
half Of 1 cent for each gross ton of any
vessel regardless Of speed for each 100
miles Travelled. When the speed is 13
knots or over, but less than IA, two
tenths of a cent on each gross ton shall
be added; for IA knots, three-tenths of a
cent; for 10 knots, four-tenths; for 16
tenths; for IS knots, nine-tenths; for 10
knots, eleven-tenths, and for 20 knots,
thirteen -tenths shall be added to the
basic rate.
"For Is knots the maximum is reached
at &c cents for each grosst ON per 1O0
miles travelled.
II will not attempt the details of re-
quirements or limitations save to say
that all vessels thus remunerated shall
carry the U. S. mails except parcel post
free of cost and that all such remunera-
ton must end whenever the owner CT any
vessel or vessels shall have derived a
net operating income in excess of 10 per
cent per annum, until the full amount of
subsidy previously received is returned to
it's source. IN other words it is proposed
to encourage the shipping in foreign
trade until the enterprise may earn 10
per cent on actual investment, whereupon
the direct aid extended is to cease and
the amount advanced is to be returned
out of a division with the Government
of nrOffS in nf that IN
The provision makes impossible the
enrichment of any special interest at
public expense, put an end to the Gov
eminent assumption of losses.
COST FIRST YEAR PUT
AT FIFTEEN MILLION.
THE cost of such a program probably
will reach fifteen millions the first year
estimated on the largest possibilities of
the present feet. With larger reimburse
ment to high speed vessels and the en-
largement of the merchant marine to a
capacity comparable with our commerce
the total outlay may reach the limits of
thirty millions, but it is confidently be-
lieved that the scale may in due time
thereafter be turned until the larger re-
Endorsements are restored to the treas
ury. Even If we accept the extreme pos
stb1ltty-that we shall expend the maxi
mum and no return will ever be made,
which is to confess our inability to es-
tablish an American merchant marine
the expenditure would be vastly pref
cradle to the present unfortunate sit
uation with our dependence on our COM
petitors for the delivery of our products.
Moreover, the cost for the entire year
would be little more than the deficit
heretofore encountered in two months
during the experiment of the Government
sponsoring the lines and guaranteeing the
cost Of their operation.
1.-THE proposed plan will Supercede all
postal subventions, postal compensation
and extra compensations, excepting parcel
post freights, all Of which combined are
fast growing to approximately five mil
lions annually. 1t will ultimately take
the Government out Of business which
has been and is now excessively costly
and wasteful, and Involving loss in ex-
cess of the highest subsidy proposed. 1t
will bring to shipping again that inviduai
initiative which is the very soul of sue
cessful enterprise. 1t should enable the
Government to liquidate it's feet to the
highest advantage.
STIFF COMPETITION
MUST BE FACED.
1.-THE making of a successful merchant
marine which must face the stiffest pos
sible competition by the fleets of the
maritime nations requires something
more than the direct aid to which l have
alluded. The direct aid proposed even
though it ultimately runs to thirty mil
lion annually is insufficient alone to OFF
set the advantages of competing fleets
There are more than wage costs and
working conditions and the higher cost
of rationing which no considera Bile Amer
lean sentiment will consent to have low
cred to competing standards.
1.-THE men who sail the seas under
our flag must be permitted to stand
erect in the fullness of American oppor-
tunity. There is the higher cost of con-
struction, the larger investments, the
higher cost OF insurance outlay, even
though the rate is the same. There are
higher interest charges. Our problems
in shipping are very much the same as
those of our industries ashore and we
should be as jealous in promoting the