, 1922-02-28
MESSAGE OF PRESIDENT
ON SHIP B BILL

tAto t1c u1plrAlAous dLcH Tex me say
the determination. to establish = mer
chant marine commensurate with out
commercial importance. Our problem
Is 4 turn the ships and our expert
once and aspirations into the effective
development of an ocean going ship
ping service withou. whic hthere can
DO no ASSURANCE Of maintained COM
merciai eminence. without which any
future conflict at arms VIII send Us
building again, wildly and extrava-
gantfy. when the proper concern for
this necessary agency OF commerce
in peace win be our guaranty of de-
Tense IN case that peace is disturbed.
Out OF the story of tho making OF
great merchant marines and out Of
our experience we ought TO find
the practical solution Happily VIC
are less provincial than we once
were Nobody pretends n longer
that shipping lie n matter OF concern
only to the ports involved. Com
merce on the seas Is quite as vital
to the great interior as e Is to our
coast territory. Shipping IS no more
a sectional interest than Is agricui-
tura1 or manufacturing. No n of
them CT be E prosp-rcd alone
We hnSe had . new manifestation
OF this broadencd vision In the en-
thusiasrn II the great middle west
for the proposed Great Lakes-St law
renee waterway. by which It is In
tended TO connect the Great lakes
port with tho marts OF the world.
There is far seeing vision in tho pro
posai. and this great and commend
1AA--.~-. $780, IAw-
orablo confederation Is inseparabie
from a great merchant marine
What. then. is our problem? I
bring I o you the suggestions which
have resulted from a comprehensive
study which r recommended to mo
by every member Of the United States
Shipping board. 1t 4 n program of
direct and indirect aid TO shipping
TO be conducted by private enter,
prise. 1t is proposed 70 apply gen
orally the benefits which It was de-
signed to derive from discriminating
duties 70 al ships engaged in foreign
commerce.. with such limitation on
remuneration ns will challenge every
charge Of promoting special interests
at public cost
In lieu Of discriminating duties on
imports brought to us In American
bottoms Il g proposed to AXE ten
per cent of all duties collected on
imports brought Co US In American
or foreign bottoms. and create there-
from q merchant irarine fund To
MS fun shall be added tho tonnage
CHARGES. taxes and fees imposed on
vessels entering the ports of CONT
mental United States. also such sums
a. arr payable to American vessels
by the p~ostofficc department. ior
the transportation by water OF foreign
mails, parcel posts excepted.
out of this fund shall be paid the
direct aid In the development ano
mainten.suce OF an American merch,
ant marine. The compensation shall
be based on one-half OF one cent
for each gross ton OF n vessel,
Regardless of speed. for each 100
miles travelled When the speed is
IA knots or over, but less than IA.
two-tenths of a cent on each gross
ton shall be added. for 145 knots
thre,-tenths of a cent: for is knots
four-tenths of n cent; for 16 knots
1ve..enths. for IT knots, seven-tenths
for Is knots nlne-tenths; for 10 knots
e,e~yen-tenths for 20 knots, thirteen-
tenths shall be added to the basic
rate. For 20 knots. the maximum Is
reached at 2.6 cents for each gross
ton per 100 miles travelled
The cost OF such q program prob
ably win reach fifteen million the
first year. With larger reimburse
ment to high speed vessels. and the
enlargement of the merchant marine
TO a capacity comparable with our
commerce the total outlay may reach
the limits Of thirty millions. but 1t is
confidently believed that the scale
may in due time thereafter be turned,
until the larger reimbursements are
restored to the treasury.
The proposed plan will supercede
all postal subventions, postal compen
sations. and extra compcnsations. ex-
cepting parcel post freights. 1t will
ultimately take the government out
Of a business which has been. and Is
now, excessively costly and wasteful
and involving a loss in excess of the
highest subsidy proposed. 1t viii
bring to shipping again that ind
vidual Initiative which IS the very soul
of successful enterprise.
The making of a successful Ameri-
can merchant marine. which must
face the stiffest possible competition
requires something more than h di
rect aid to which I have alluded. The
direct aid proposed. even though II
ultimately runs to $50. 000. 900 an
nuaIly. is Insufficient alone to offset
the advantages of competing fleets
There arc more than wage costs. and
working conditions and the higher
costs of rationing. which no consid.
cradle American sentiment will con
sent to nave lowered to competing
standards
1 think we should discontinue, sc
far as practical the transport ser
vices in the army and navy and make
our merchant marine and passenger
passenger ships the agents of service
in peace as wei as war. We should
make insurance available at no great
err cost than as is afforded the ships
under competing flags. and we can
and will make effective the spirit