New-York tribune., 1922-09-10
Retaliation Against U. 5. Ship
Subsidy i Planned by British
Marine Men Put Faith i'm Counteryailing Duties:
Overlook Treaty of 1915 With This Country
General Misunderstanding Of American Bill
By David S. Kennedy

6FIllSh 5Ieanlsnlp owners ana gov
ernment officials do not intend TO
stand quietly by and watch the United
States adopt measures for the upbuild-
ing of it's merchant marine. Methods
are now being discussed for retaliation
in the event that the subsidy bill is
passed by Congress next winter. State
ments in the marine press of Great
Britain By steamship men and public
officials admit that the pending meas
ure will give a great impetus to Amer
lean shipping and that the effect will
be to the disadvantage of English
fleets, which are entrenched along the
most important trade routes of the
world. The general opinion is that an
advance for the United States means
decline for Britain.
Several times in the last few months
public speakers abroad have referred
to the ship subsidy program as an un-
friendly act toward Great Britain, ap-
parently taking the point of view that
British supremacy should remain un-
disturbed and that this country rs not
entitled to carry one half Of its foreign
commerce In its own vessels, which
is the nvowed purpose of the pending
bills
A review Of published statements on
the American marine plan shows (l)
that there is a general mlsunderstand-
ing abroad of the scope Of the measure
and its provisions, and ca that the
British intend to rely upon counter
yailing duties to Offset the legislation
if enacted by, Congress. The customs
consolidation act of 1853, authorizing
the British government to raise or
lower port dues and charges, is the
mainstay of the plan to offset the AID
to be given to American Shipping.
IL. S. Subsidy Misunderstood
There is general confusion abroad
on the features of the Jones act Of
1920 and the contemplated merchant
marine act of 1922. The first law car
ried sections directing the President to
abrogate those parts of commercial
treaties restricting the right of the
United States to impose preferential
duties and tonnage dues. President
Wilson refused to put the section into
effect and PresidenS Harding followed
suit For all practical purposes this
law is dead at present. 1t is evidently
the belief abroad that the new bill is
intended to make the old features
effective, and for this reason the Brit
ish rely upon countervailing measures
as the strategy of their campaign
This view of the situation is errone-
Gus. If discriminating duties and ton
mage dues were to be made effective,
then the Britiesh plan for retaliation
in kind might accomplish the purpose.
But the new bill takes another direc-
tion. The chief features are, Cd di-
rect, subsidy to offset higher wages,
construction costs and subsistence for
crews; (2) loans at low interest
for new buildings; (S) income tax
exemption for exporters, importers and
also steamship companies under certain
conditions. The aid extended by the
government under this measure is en-
tirely internal, without discrimination
of any nature against foreign vessels
This being the case, thes plan for
vountervailing duties will fail COM
pletely There will be no discriminate
ing duties or charges in American ports
which will form the basis for retalia-
tion abroad. Furthermore, the British h
marine publications overlook the fact
yet abrogated its commercial treaties
with Great Britain, these are still in
| effect. "
Treaty of 1915 in Effect
The outstanding feature of the situ-
alton is that the customs consolida-
tion act of 1858, upon which the
British place their reliance, is in direct
conflict with the treaty of 1915 be-
tween the two countries. This is still
in full force. The principal section
of the treaty is that neither country
shall discriminate against the mer-
chant ships of the other in direct trade
between the two countries. Under the
treaty the United States is now pre-
vented from imposing preferential
duties and dues. This was the rock
upon which the preferential section of
| the Underwood tariff act split in 1913.
| 1t is the same rock upon which the Brit