The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-02-28
SHIP SUBSIDY
BILL GIVEN To
BOTH HOUSES
MEASURE Calls for So, 900, 600 An.
nuaIly to Come From 10 Per
Cent Customs Receipts.

washington. Feb. 2S.-A ship
subsidy estimated at approximately
ssa 900, 900 annually, to be provid-
"A for principally by the diversion
an 10 per cent of the nations Gus
TOMS receipts, would be paid to
he owners of American ships en-
gaged in foreign trade under a bill
Introduced today in the senate and
house. The measure incorporates
a subsidy plan proposed by the
shipping board and endorsed by
PRESIDENT Harding in message
read today to joint session of the
TWO houses.
introduced in the senate by
chairman Jones of the commerce
committee and in the house by
chairman Greene of the merchant
marine committee, the bill sets
forth that the purpose of the di-
rect subsidy provision is to laid the
Development and maintenance OF
the American merchant marine, 20
promote the growth of the foreign
commerce of the United States and
TO contribute to the national de-
Tense"
Other provisions of the bill would
authorize the creation of a con
struction loan fund" to be admins
tered by the shipping board and de-
rived from the sale of it's vessels
in addition to operating revenues;
require that not more than SO per
cent of the number of aliens ad-
Missile to this country in any one
year be transported in foreign bot
toms; and authorize the payment
OF an additional months pay an
nually to officers and men of the
merchant marine who shall enlist
in "the merchant marine naval re-
serve" which the bill would estab-
lsh as a component part of any
reserve force of the United States
navy.
May Sell Ships.
by amendment of section five OF
the merchant marine act of 1920
the shipping board would be au-
thorized and directed to sell it:
ships as soon as practicable, con
sistent with good business meth
DDS" to citizens of the United
States.
The base subsidy base rate pro
vided for all vessels either sailing
or of 1900 gross tons or more, re
CARELESS Of speed lis one-half o
one cent per gross ship ton pc
100 nautical miles travelled" AL
power-driven vessels between tina
tonnage and 5000 tons gross would
receive the rate applying to the lat
te displacement. For vessels cap
able of a speed of 13 knots or NOR
additional allowances would b.
provided, ranging from two-tenth
of one cent to two and one-tentl
cents for vessels with a speed Of q
knots or more.
The shipping board would be au
thorized to increase these rates III
TO double their amount whenever i
shall determine that the base rat
is insufficient to induce the opera
ton of lines where the establish
ment and maintenance of service il
considered necessary Ito promot
the nations welfare" Similarly, i
would be permitted to reduce tn
base rate under special circum
stances where itw as considere'
desirable.
Defines ~FOreign Trade"
Trade between the United State
and the Philippines and the Virgin
Islands is defined for the purpos
of the bill, as foreign trade. Tn
definition of such trade exclude
the Great Lakes as well as trad
between ports in the United State
Nfv-Ic
where the distance between the YES
sells last port of call in the one ant
the vessels first port of call in tn
other is less than $50 miles"
The bill provides that where tn
net operating income derived by al
owner from vessels receiving tn
subsidy exceeds ten per cent in an.
fiscal year, so per cent of such ex
cess shall be paid to the shipping
board to be placed in the merchan
marine fund from which the sub
sidy would be pair, although it i
stipulated that this shall not eX
coed the total amount of compensa
ton received under the proposes
law.
In addition to the ten per cent di
version of customs receipts to ere
ate this fund. the bill provides tina
it shall derive from port tonnag
duties. taxes or fees which woult
be doubled under the bill, and ais
the amount that would otherwise b
payable by the postoffice depart
ment for the transportation of mails
which any ship contracting for tn
subsidy would be obligated to do un
der specific conditions.