The Birmingham age-herald., 1922-12-14
UNDERWOOD |S
 ERIE NDLY TO. J. 5. SHIPPING
Senior Alabama Senator Is Opposed to Subsidy Idea. Will Offer Substitute
 For Administration
 Marine Measure
WASHINGTON BUREAU I
 THE AGE-HER4ALD ! Washington, ID. C., Dec. I3 i


 In all probability he will offer as substitute for the subsidy, sub vention clause under which bene- ficiaries would actually earn the necessary additional emolument.
 He authorized this bureau tonight to make such statement. In a brief controversy with Senator Jones of Washington, who has charge of the shipping bill, the Ala bama senator, after stating opposi- ton to the subsidy provided for in the measure, declared today em- phatically that he favored the up- building of an American merchant marine.
 Never Voted For Subsidy
 He explained that he had sponsored legislation requiring the abrogation of trade treaties and that such ac- ton would have already been taken to the advantage of shipping but for the refusal of Presidents Wilson and Harding to put into effect tha will of the Congress of the United States.
 He expressed the opinion that the Congress should renew it's effort to secure executive action in ac- cordance with the will of Congress.
 In part. Senator Underwood said in the Senate.
 q never have voted for a subsidy. do not favor. subaidles largely for the reason that if you start to give subsidy to build up one institution you have 10 follow 1t with others. But 1 am in thorough accord With what the senator (Jones) says about building up an American merchant marine.
 Discriminating Duty
 T was in accord as far back as 1913 when the last tariff bill was written. On my motion dlscriIn- mating duty was placed in that tariff bill. It was an amendment in tn. Senate that prevented 1t becoming effective The senator (Jones) In the act oi 1920 followed that plan and 1 was glad to support him in ac- cording discriminating duties. He provided for the cancellation of for eign trade contracts that interferred with discriminating duties taking eff feet The senator still believes, does he not, that 1t is perfectly legitimate for this government by law to wipe out foreign trade contracts that are sometimes called treaties?"
 Senator Jones answered in the af- firmative.
 And the only reason such con- tracts have not been abrogated,' Sem ator Underwood querried, lis because the executives would not follow the will of Congress?"
 That is true" said Senator Jones.
 Cancel Contracts
 Then 1t seems to me-" continued Senator Underwood, Tit is time for Congress to assert itself again and see If we cannot convince the ex- ecutive that he should cancel con tracts that are subject to cancella- ton when it is the will of the rep resentative of the American people that they be cancelled. l agree with the senator thoroughly that when you give subvention by discrim- mating duties to American ships, there IS nothing wasteful about it. You only pay as you go. and no ship gets anything that 1t does not earn. But when you enter the domain of subsidy very often you pay for same thing for which the American people do not get value received. I think 1t is there that the very grave dis tinction comes"
 q agree absolutely with the sem ator," interposed Senator Jones. As to why Presidents Wilson and Hard ing refused to abrogate trade agree ments in response to the will of Con- gress, Senator Underwood did not say. However, he held that 1t would have been entirely proper had they done so
 American Interests
 "I do not think" he added. there is any reason in the world, from an international standpoint. why we can not, on proper and just notice, cancel these contracts. The real truth about 1t is that there there is q vast num- Der of American citizens who are in- terested financially in British ships. and they have always stood in the way of any legislation that would build and maintain American ships. owned by Americans, and flying the American flag"
 In stressing the fact that he stood for the upbuilding of merchant ma rine, Senator Underwood declared that whereas cotton in 1913 was sell 
 ing for IA cents in october, 1914. it sold for cents. due solely to the fact that the ocean liners of Great Britain were diverted from our ports, The farmers of the south were put to a loss of s1,000, ,000, ,000."
 At that point. Senator J. Thomas Heflin of Alabama declared, That one of the main troubles with us at that time was that England had is- sued an embargo against cotton and everything else going to Germany"
 II dislike to take issue with my colleague, rejoined Senator Under wood, but the facts do not sustain him. During the summer of 1914eand up to october. that year, cotton dropped from 14 cents to cents. Up to that time there had been no em- bargo issued. 1t was due solely to the fact that we did not have ships in which to carry our cotton. After wards. when we secured transporta- tion. 1t was demonstrated that war
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