The labor world., 1922-06-10
HOW SHIPPING 30 Ard CAMPAIGNS
FOR PASSAGE OF SUBSIDY BILL


BY Representative Ewin l.. Davis.
The hearings upon the pending
ship subsidy bill have just. been COM
pleted. Although a large majority of
those who made statements at the
hearings were representatives Of the
shipping board and ship owners,
who had been engaged for months
in the preparation Of carefully pre-
pared written statements, with the
assistance and resources of the ship
ping board organization and the
American Steamship Owners asso-
citation at their command, yet the
facts ELECTED at the hearings are
such that II all of the American peo-
pie could read the hearings in full,
there would be such a storm Of pro-
test against this iniquitous bill that
its proponents would not even dare
to report it out
However. ractiCally none OF the
iniquities Of tho bill have thus far
been brought TO the attention of the
public in any extensive way. Chair
man Laskcr is an expert professional
advertiser and in furthering this bill
ne has played the game he knows
fund Of $1,715,00Q being spent dur
ing the current year by the shipping
board for advertising is not being
distributed in vain. Much misinfor-
nation snd misleading propaganda
has been disseminated. The social
lobby has been worked overtime.
Every conceivable method is being
employed to promote the passage Of
this bill. The issues have been mis-
stated. and the true facts largely
concealed from the public.
The proponents of this bill en-
deavor to make it appear that the
issue to be determined is whether or
not we shall have an American mer-
chant marine: they insist that those
favoring an American merchant ma
rine must support this bill, and that
those who do not support this bill
are opposed to an American mer-
chant marine. These contentious are
al absolutely false.
am sure that every member of
both the committees considering
the pending bill is heartily In favor
of an American merchant marine.
and this is doubtless true as to every
member of congress. However, many
of US are convinced that the pres
ent bill as . whole is not only vicious
in principle and very bad in form,
but also that it will impose tremen-
dous additional burdens upon the
already overtaxed people without
materially aiding in the sound and
permanent maintenance of an Amer
lean merchant marine. 1t would be
q subsidy upon inefficiency and ex-
travagance, and would insure the
continuance of such practices. AS
shown in the hearings, the disad-
vantages existing against the opera
tion of ships under the American
flag are overcome by the advantages
in their favor.
Here Are Some Profits.
American ships, if honestly fl
nanced and efficiently operated, can
compete with foreign ships, as many
of them have done in the pust and
as many of them are doing today,
without subsidies. Various ship op-
orators testified at the hearings and
not one of them even claimed that
his line was losing money now, al
though it is universally admitted
that this is the worst time in the his
tory Of shipping.
Not only have at least most of the
American private-oWned lines made
profits during peace times, but prac-
tically all of them made fabulous
the Luckenbach Steamship company
made g. net profit on its capital
stock Of 66696 for 1917, and
1852 for 1862. The American -Ha-
waiian Steamship company paid a
dividend of 200% in 1915 and 405%
in 1917. The Dollar Steamship Line
made net profit on it's capital
stock Of 322.9% during 1913, the Pa
clfic Mail Steamship company made
a net profit on its capital stock of
s2% for 1917, and during the years
1S15-192O made net income of
$3.50. The Atlantic, Gulf and West
Indies Lines earned a net profit of
more than their entire capital stock
during the years 19151920; the
United Fruit company made a net
income of $94,147,50O, during 1915
to 1920 upon a capital stock of $780,
100000, which was increased to
~A'o'oo"'VVO upOu lllC issuance OF
stock dividends of 1909 in 1920;
during those years, it added $685.
176,490 to surplus.
The Standard Oil company and
United States Steel Corporation op-
Grated large number of ships in
the transport of their own prod
ucts, and would be entitled to the
subsidies and other aids provided by
the pending bill; it is unnecessary
for me to call attention to the enor-
NOUS profits which these "infan,
industries have already made.
All Of the facts and figures thus
given, as we'll as much other data
along the same lines. appear in the
record of the hearings.
Encourages Favoritism.
The pending ship subsidy bill |.
. most remarkable one in many re.
spects. It confers the most auto.
cratic power and the widest discre
ton perhaps ever conferred upor
any other board: 1t affords bound.
less opportunities for favoritism
Eraft and corruption. Under it's pro.