Evening star., 1922-04-04
MERCHANT MARINE
EXPENSIVE FAILURE,
LASKER DECLARES

CONTINUED from First Page.l
successful government operation. the
Shipping Board AYERS, is AN impos-
sibility.
Fifty million dollars annually it
iS costing to keep the Shipping Board
boats going-fifty million dollars. NOT
including. however. interest, full in
surance, or depreciation on invested
capital.
Government Must Meet Difference.
With higher costs of living and
with higher capital charges, if we
grant that for war and peace-time
purposes we need a merchant marine,
the government must. through aid to
shipping, direct or indirect, or both,
make good the difference between
these added charges under the
American and other flags.
THE proposals made by the Presi-
dent contemplate that at ultimate
maximum expenditure of $4,000. 900
per annum in direct aid. and through
various forms of indirect aid, we will
finally dispose of our ships for private
operation, at total annual cost of
something over $4,000. 900. and thus
snail we end an operating loss of
$3o:oe0,000. give our people q better
ana more assured service on the
seas than America has ever enjoyed
heretofore, successfully turning a
wartime and war-built enterprise
into great instrument OF peacetime
protft and peace insurance
1T is asked that the Shipping Boar
fleet be sold at world prices. regard
less OF cost of construction. The
board asks that it be permitted. out
of further liquidation, 10 accrue to
the construction loan fund as expe-
dltiously as possible the s125.0e0, 600.
and asks permission to loan this at
rates as low as 2 per cent.
Tax Deduction Recommended.
I'm order to create an incentive for
shippers to use American-ffar ships
and as stimulus to our foreign trade,
a deduction from net federal income
tax payable should be allowed on the
basis of per cent of the freight paid
on goods imported or exported in
American-fiag vessels
"A greater allowance for deprecia-
ton for income tax purposes should
be made on ships, in order TO make
the depreciation allowance more ac-
curately represent the actual depre-
citation of vessel and to give effect to
the marked slump in the value of tom
mage during the past several years.
Section % of the merchant marine
act should be amended SO that the
payment of all income taxes (Which
would otherwise be payable on net
earnings of vessels in foreign trade)
shall be waived by the governmen mt
when the amount of such taxes is ap-
piled to half the cost of new ship
construction-incre sing same from
one-third as at present.
Should Carry Half of Immigrants.
1T is proposed. through co-opera-
tion with the bureau of immigration
of the Department of Labor, that
regulations should be prescribed and
legislation enacted that would insure
to American-flag passenger ships at
least so per cent of the immigration
coming to this country.
1T is proposed that body of Off
GERS and men be organized to be
known as the merchant marine naval
reserve, TO be composed of American
citizens of seafaring profession. The
members would obligate themselves
to serve. in time of war or national
emergency, in merchant vessels en-
gagged in auxiliary service for the
Navy. The reserve pay of these Of
ficers and men would be turned over
by the Shipping Board to the Navy
Department for disbursement.
Legislation should be enacted that
will prohibit hereafter the overseas
freight at the expense of the govern
ment. other than in a vessel flying
the American flag, unless suitable and
convenient transportation by an
American vessel is not obtainable.
Direct Aid Plan.
The direct aid is computed on a
differential based on a combination
of speed, tonnage and distance COW
cred. starting with half cent per
gross ton per hundred miles steamed
in the foreign trade for ships under
thirteen knots. and increasing to a
maximum of &c cents per gross ton
per hundred miles steamed for ships
of twenty three knots and over. 1t
is estimated that in order to develop
a balanced fleet of 100000 gross
tons. which should carry so per cent
at least of all branches of our over
seas trade, the cost to the Treasury
will ultimately approximate $4,000 o.
600. though for the first year it is es-
timated at only s15.000,000 We think
q
should enable US to soon get the
Emergency Fleet Corporation out of
operation and save the greater part
of the $50. 100000 loss which now bur-
denS the Treasury, the direct aid here
proposed should and will more than
pay for itself
The limitation of profit feature
comes in as an automatic check on
mistaken judgment or preference; for,
if the Shipping Board allowed too
much, when the profit reaches 10 per
cent in any one year. half of the plus
profit returns to the merchant marine
fund until the subsidy is repaid.
'The study of the Limitation of
profit has been made with a view to
insuring that every dollar paid out
of the public treasury brings creative
results to the American merchant ma
rine, on the one hand. and still mini
mises that measure of governmental
supervision and interference which
might make the private owner timid
There is nothing in the proposed
legislation that insures profits. on the
one hand, or encourages profiteering
on the other. The reason for allow
ing 10 per cent In good years and
half of the plus over 10 per cent until
the subsidy is repaid 10 the merchant
marine fund is that companies may