New-York tribune., 1922-11-20
Marine Bill Is Comprehensive
Plan to Upbuild Ocean Fleet
Cost Will BE Less Than Present Expense for u. S.
Ownership and Operation Through Ship Board
4 Private Lines Regulated and Profits Limited
By David s. Kennedy

The rise or fall of American shipping
as an essential industry and 80 s
branch of the naval defsnae depends, Sc
far az the future car be forecast now
upon the action Of Congress- on ths
merchant marine bill put forward b.
President Harding. Defeat OF She meas.
ure strikes the flag. from private yes.
sets IN the tfans-ocesnic traffic snt
puts the aees where Is waa before The
war.
In the special session Congress wjl
take up for confederation measure
that has been drafted after q year
of research on the part Of the Shipping
Board, steamship owners, shippers and
naval officials It represents the best
available plan, adopted as preferable
TO a policy OF Terminating duties
or Of continued government ownership
Opponents Of the hili. having The
facts laid before them IN an extensive
hearing which included witnesses OF al
shades Of opinion, were ASKED 10 nd
vance some alternative plaa, No such
suggestions have been forthcoming
The substance ef the fght against The
measure is that the bill viii favor 8
special class, will impose new burdens
Of taxation, and viii be q dangerous
precedent of government aid TO one
INDUSTRY.
Answers TO these arguments are
first, the benefits to the steamship lines
with their profits limited to maximum
Of 10 per cent, will not be so great as
the returns TO the country through the
development OF new means Of trans
portati0n: second, the cost to the
Treasury will not be SO great 81 the
@resent expenditures Cor government
ownership and operation, which 1t will
replace; third, the bill extends 10 chip
ping, through 2 levy upon the tariff re-
turns, the protection which the same
tariff has placed around American in
dustries for generations.
Equalizes Foreign Costs
Enactment Of the measure will enable
American shipping to compete on sp-
proxiniateiy equal terms with their for
eign rivals; it will result in the devel-
opmert of new markets for the products
of the farms and factories, making II
possible for them TO meet foreign com
petition; it will create naval reserve
essential as . supplement to the navy
st less than the cost OF one battleship
Since tho establishment oe the Re.
public, nearly q century and q half
ago, the governments has aided, through
ehe tariff and indirect subsidies, tbs
development Of manufacturing indue-
tries, farming, railroads and other &C
Siyities. In the first years Of the lasS
century this assistance was extended
70 shipping, with the result that Amer
lean vessels carried 90 per cent Of our
foreign trade, but with the withdrawal
Of this protection the proportion OF
our commerce carried on our own ships
fell to s per cent Immediately before
the war. The gains registered during
the war, under abnormal conditions
are rapidly disappearing, and will com.
pletely disappear without some policy
of government support.
Government operation through the
Shipping Board now costs approximate
" $50,000,000 year. AS the ships
are sold TO private owners md the
merchant feet grows, Che total sub
sidy cost will reach about the same
sum. The expense 60 the taxpayera
will be- no greater than at present
Funds for the subsidy are to be derived
from 10 per cent Of the tariff receipts
Annual Cost S47, Coos Goo
The total direct cost Of the subsidy
bill is estimated by the Shipping Boart
st maximum, not to be reached fol
several years, Of SAT 100000. This i.
divided as follows;
10Ts OF customs receipts. .sSo, 600. .os
1onnage taxee ,..,............ k,000. .oct
interest loss on loans. ........ s.12s,o0t
The possible profit OF 10 per cent e
ship owners, plus one-hslf OF the ex
cess until the subsidy is returned, doe.
not represent guaranty, but permits
ston to make that amount to eauaIixe
returns in profitable and lean years
Precautions will be taken by the boart
against the eoncealment Of earning,
Through excess capitalization or ID,
formation OF subsidiary concerns.
The construction loan fund Of s12S,
100000 is to be created through th,
sale Of ships. The minimum irteres
rate of per cent is designed 60 offse
lower capital costs abroad. Money 20
this purpose will be loaned only fo
the building Of fast passenger an,
modern freight vessels.
Exemption from net Fedora! incera
taxes, amounting TO per cent Of Sh
freight money paid by exporters t
American vessels, Is designed as an in
ducement to shippers 60 pstroniz
American ships.
The purpose Of the bill is 60 create
weli-balanced merchant marine o
100000 gross tons, about one-thiYd o
the British feet, to be capable of hand
ling so per cent of our overseas com
1nerce. This ia to consist OF the follow
ing vessels: fast passenger and carg
ships, 5,70G,o00 gross tons; tankeTs
100000 tons; express passenger YES
sells, especially suitable az naval auxili
aries, 100000 gross tons.
Summary OF she Bill
The principal features Of the sSt,
subsidy bin, as 1t stands at present
may be summarized briefly as Sollows