New-York tribune., 1922-04-08
Lasker FavOrs
Ship Subsidies
As Alternative
He Says Preferential Tariffs
Would Be Cheaper, but
President Will Not At
tempt to Abrogatc Treaties
Suggests Trial Of lOYears
Government Aid Will Not Be
Needed After That Time,
He Tells Joint Committee
FROM rhc Tribnne.s 1Hnshinoton Rurenu

From Thc Tribune.s Washington Bureau
WASHINGTON, April Enforce
ment of Section I'd Of the Jones act
providing for discriminating duties
would be Infinitely the cheaper way
of building up the American merchant
marine, Chairman Lasl<er of tho Ship
ping Board to-day told the joint scs-
sion of the House Merchant Marine
and senate Commerce committees, at
the hearing on the subsidy measure
Section 81 provides preferential tariff
IN American vessels
Chairman Lasker said he believed in
Section 81. but inasmuch as neither
ex-Presidcnt Wilson nor President
Harding would take steps to abrogate
the treaties as contemplated in that
section, 1t was necessary to turn to
some other plan. He added that while
he believed in the policy of discriminat
ing duties, those who opposed it took
the view that if Section 80 went into
effect, "the retaliation would be i'm
meaSurable.'
Mr.. Lasker expressed his view of the
policy of discriminating duties early
IN the hearing to-day, and later on,
when ne was asked by Representative
Edmonds, of Pennsylvania, whether the
not made to take the place of Section
"a, he said it was intended in part to
do this.
Not for Permanent Subsidies
Another point brought out from the
chairman through questions by Mr.. Ed
monds was that the policy of direct
subsidies was not intended to be a
permanent policy. Mr.. Lasker said tho
1l,,,
ing to get fifteen-year contracts. but
he was opposed to contracts of that
length.
Il think that in ten years. he said,
american shipping will not need di-
rect subsidies" He held that by that
time the system of indirect aids would
be adequate.
Mr.. Lasker's cross examination was
completed to-day and ne was excused.
The hearing adjourned at 80 until
Monday. Daniel II. Cox, of Cox g.
stevens, naval architects, and manager
of the division of steel ship construc-
ton of the Emergency Fleet Corpora
ton in 1918 and 1919, was also wit
ness. Mr.. Cox urged use of the most
etfic1ent types of ships and held the
wooden ships and some Of the poorer
steel ships should be scrapped
Disposition of the Democratic mem
bers of the House Merchant Marine
committee to ask many questions
brought a protest to-day from Senator
Jones, chairman of the Commerce Com
mlttee. He said that if this policy
was followed it would prolong the
hearings indefinitely. 1t has already
become clear that there is no prospect
Of making two weeks of hearings suffice
TO finish the testimony, as was hoped
i
In the course of his testimony to-
'aN' under questions from Represen-
5ative Edmonds, Mr.. Lasker said that
"' vNO,UV0 had been given by
alm yesterday as the cost of the bill |
'..4D,...y TO the Treasury, the cost |
would be far less the first year and for
some time to come
Losing S59,oOO,OOO a Year
"We have no idea that under the
most ideal conditions we could reach |
in less than five years." he
said.
He said it must be remembered, how
ever, that the Shipping Board now is
oslng $60,00o,OO0 year. Long before
i've years, he believed, all the Ship
ping Board ships would be sold. In
considering what the government would .
oay out for aids to shipping, he point.
9d out, the Treasury would be ahead (
he sums now lost by the Shipping
ooard plus what the vessels bring |
when sold.
"Ill be disappointed" he continued,
If in three years the Shipping Board
expenses are over $5,0O0000 year. In
i've years they ought not to be over
S500000 Long before we will have
reached $47000,000 in direct and in
1rect aid from the Treasury we will
rave ended the $50,0OO,0 900 loss of the
99hlpplng Board and the Emergency
'lect Corpora ion"
Representative Edmonds pointed out
hat SAT 100000 represented about the
cost of one battleship. He wanted to
inow If the vessels subsidized and aid
ID would be equal to one battleship.
mr. Lasker said $30,OO0,OOO spent in
fostering the peace trade of the coun-
ry was worth much more than one
,attleship.
Mr.. Cox gave testimony as an expert