Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1922-03-03
HARDING IN PLEA
FOR SHIP SUBSIDY
Reads Message to Congress Urg-
ing Adoption of Plan for
Merchant Marine.
TO COST S125,OOO,OOO A YEAR
Ten Per Cent of Customs Receipts to
Pay American Ship owners-officer
and Men of Merchant Marine &c
Enlist in Naval Reserve.

Washington, March 1.-PreSldent
Harding urged a joint session of con-
gress to grant a subsidy to an Ameri-
can merchant marine. To do so, he
said, would end the governments
costly experiment in the shipping bust
ness aad would create a strong second
line naval defense for the nation.
With his recommendation the Presi
dent offered plan for the subsidy.
Its main points are: Liberalization
of restrictive marine laws.
Shipping board to sell remaining
government ships. not by competitive
bidding, but by prices to be fixed by it.
Establishment of $125,000000 loan
fund, from which ship builders can
borrow money at ? per cent
Reduction of income taxes on ship
ping corporations equal to . per cent
of value of goods shipped under the
American flag.
Government TO waive all such in
come taxes when the amount of taxes
is to be applied to half the cost of
new ship construction.
Establishment OF regulations COM
pelling 80 per cent of all immigrants
coming to America to travel ON
American ships.
Establishment of a merchant ma
rine reserve comprised of sea-faring
Americans in merchant marine serv-
ice.
All government transportation to be
done in American ships, including
army and navy transportation.
Extension Of coastwise shipping
laws to include the Philippine islands
Direct government aid TO be with
held when companies are earning
more than 10 per cent profit, or when
government aid has been extended, all
over 10 per cent to be turned back to
the government.
Ten per cent Of all customs duties
to be devoted to a revolving fund
(about $300O0000 annually to pro
vide means Of extending aid
Tonnage taxes (amount'ng to about
$20000OO annually TO be paid into
same fund
Second Defense Line.
"The relatively of strength (nava)
among the powers would be wholly
one of disappointing theory" he
said, iii ours is 10 be merchant
marine inadequate for the future.
do not care to stress it us means
of defense. The war and our en-
forced outlay have already stressed
that point
THE merchant marine is univer-
sally recognized as the second line of
naval defense, 1t Is Indispensable
in time Of great national emergency"
The President reviewed ut length
the history of Americas costly ship,
ping enterprise during the war
"The outstanding lesson learned"
he said is that the government can
not probably manage our merchant
shipping, The. most fortunate changes
In the personnel of management
would still leave us struggling with
policy fundamentally wrong and
practically impossible.
Having failed at such enormous
cost, l bring you a proposal which
contemplates the return to individual
initiative and private enterprise"
Those who oppose his plan, the
President observed, ought lin all
fairness" to propose something bet
ter.
$15,00o,o0o Yearly Cost.
However costly the experiment has
been, the President observed. today
we are possessed of vast tonnage.
and Il conviction of failure" and he
considered the proposal he laid down
as the best way out of a bad bargain
for the government. The cost of
such a program as lie suggested he
estimated would be about S15oOO.
900 year, with $30,0OO,0O0 the out
side figure.
In his address. the President did
not go deeply INTO the details of the
plan proposed. He merely pointed
out it's main features-l0 per cent of
customs duties to go into revolv-
ing fund, the establishment or CON
version of $125,O00,0OO fund to lend
shipping enterprises. and Il compen-
sation scheme based on speed and
tonnage.
This latter provision, the Presi-
dent emphasized, would make i'm.
possible the enrichment Of any spe-
cial interest at public expense put
an end to government assumption
of an losses and leave TO private
enterprise the prospective profits OF
successful management.
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