The New York herald., 1922-10-30
SHIPOWNERS PLACE
HOPE UPON SUBSIDY
Three Great Companies Slated
, If Measure Passes at Spe-
cial Session.

Operators OF both foreign and Amer
draws near when the subsidy question
is to be settled by Congress. Nearly
every one is agreed that unless the pro-
posed legislation is passed at the special
session beginning next month It will be
deferred indefinitely, and far reaching
plans are being made ready for execu-
ton once doubt as TO the fate OF the
measure is removed.
The belief of most American ship
owners that the subsidy bill will pass
has been reflected OF late In their grow
sng unwillingness to cell their ships
Prices at which they are ready TO part
with UP to date tonnage have increased
sharply by IS to $40 a deadwelght ton,
/, and even the shipping board, it is under
stood. with It's huge idle fleet, Is showing
Jess inclination 10 make sales at the
present time. The owners believe that
the passage of the bill will provide
profitable employment at once for their
vessels, and they desire to be ready to
take advantage Of the changed condi-
tions of operation at once.
Enactment of the bill would be fol-
lowed by organization of probably three
big, companies to operate American pas
senger and freight shipping. one to cover
thei Pacific coast, another the Gulf and
third the Atlantic, the latter TO involve
reorganization of one OF the largest
ompanies operating In the European
'rade routes. Close to 00,000,00O In
capital is involved in these projects.
Conversely, II hope for the passage OF
the bill is squelched, privately owned
American passenger shipping soon will
disappear from the north Atlantic as
most privately owned freighters have
done. Now that the dry ruling has
added another burden to the countrys 8
passenger ships. it is a foregone con-
cluston that they cannot remain in oper-
alton without a subsidy. except under a
foreign flag, and transfers of registry
VIII be undertaken Immediately.
The fate of the shipbuilding industry
also is intertwined with the fate of the
subsidy bill. Now that naval construc-
ton has been suspended yards all over
the country are marking time, maintain
ing scarcely more than skeleton organ
f2ations. Although the big worldwide
surplus of freighters makes IL unlikely
mat there will be orders for this type of
ship. except to satisfy special require
method of propulsion, 1t is expected that
there Will be many contracts for con-
version to Diesel drive and a number OF
orders for passenger vessels, including
TWO 1000 foot liners that the North
atlantic organization will build for oper-
alton with the Leviathan.
Foreign shipowners also expect to be
affected profoundly by the application Of
the provisions Of the bill. assuming that
II VIII be passed without material charge
from It's present form. Aside from the
powerful financial backing that Amer
lean shipping will have under the sub
sidy. the main fear of foreign interests
hes In the section that permits shippers
10 deduct from their income taxes s per
cent Of the yearly freight money paid
Tor shipments in American bottoms.
: This Is regarded as a strong incentive to
Lne use OF American ships, and foreign
operators are planning TO make it in
enectfve by reductions in their freight
rates