New-York tribune., 1922-12-04

Der Of those Who finally cast their bal
lots for the measure declared tbey
would not have done so II II had re-
mained a. originally drawn.
From present indications tho Com.
nittee on Commerce IN the Senate viii
report the bill 90 the floor substantial
~ as Il passed tho House. No forecast
10 possible az the moment on the num-
0er Of changes which will be sought
in the upper body, but 10 IS improbable
that the features eliminated or added
by the House will be reversed. To do
This would invite defeat in that BODY
when tho measure finally comes from
the conference committee.
The most important amendment put
through In the House was the reJee-
tlon of the provision allowing shippers
rebates from their income taxes equal
20 Der cent Of money paid IN freight
rates 10 American ressels. The inten-
ton OF this feature was TO give ex-
portors powerful incentive 20 send
their shipments under the United
States flag and 20 Offset the tendency
Of foreign importers 20 order their
goods brought on foreign ships. II
this had passed sellers here would
have been able 20 offer their customers
abroad lower rates based upon lower
transportation charges. II IL estimated
that this would have cost the govern
men, in the form Of tax exemption,
about S7.O00.00O to Sl0.O00,000 a year.
This feature and the requirement
that 80 per cent Of immigrants must
travel on American ships were most
feared BY foreign steamship lines. II
is unfortunate that this form Of in
direct aid was lost, but elimination OF
the section WAS not unexpected.
several advocates Of shipping lcgisla-
ton, including Representative @. ".
Edmonds. one Of tho leaders for the
bill, believed that 70 was uneonstitu-
tional and would not stand in the
courts. For this reason the Admins
tration did not foel inclined 20 make
= strong fight fOs 60 provision and
perhaps antagonize enotss- ss-sEsS~--
20 endangor the bill. There wes con-
adorable sentiment In favor Of the
Dickinson amendment % give tho pro-
ducers a similar rebate, based on rail
rates, upon that part Of their goods
shipped abroad in American vessels.
This was opposed as an unwOrkable
provision, the cost Of which could not
Sc calculated. Many OF the shipping
men would have been glad 70 see such
feature added IF It would have saved
tho shippers ta1 exemption. Rejee-
tion Of tho tax rebate. however, does
not cripple tho bill so far as direct
and indirect aids to American lines arc
concerned.
Blow 20 Industrial Ships
The greatest direct blow to the feet
undor the American Gag was enc elimi-
nation Of subsidy benefits from ves-
sois owned BY industrial corporations
and used solely for the transportation
II their own products. such ships VIII
still receive con ompensation IN proper
ion rs they carry cargoes owned by
other shippers and % this extent eel
az common carriers. It was estimated
BY Representative Edmonds that TINS
change involved about 1000 900 tons OF
shipping ond would reduce the annual
outlay for subsidy by S3,00O,OOO 70
$4,000 900. These figures compare with
an expected merchant feet in the for
cign trade, If the bill becomes law, OF
100000 tons 40 an annual cost OF
$4,000, 900 90 S30.oO0000.
The original section, including IN.
austrial ships in the subsidy, was not
discussed upon lie merits. Opponents
cave no consideration 70 the question
whether or not the tankers are needed
as Auxiliarics in time OF war, and
whether they will 60 20 foreign flags
N the event that operating costs under
United States registry are not equal
5zed. when IL was learned that many
tankers are owned by the Standard Oil
and that many cargo carriers are owned
By the United States Steol, opponents
u the measure arose with expressions
% great pleasure on their faces and
launched vigorous attacks upon tho
trusts. Figures we're produced 20 show
fhs profits earned by these corpora
fions n wus charged that the subsidy
would add 20 swollen dividends. Ths
Fate Of the section was decided upoI
This issue. It's opponents seized th'
opportunity as a chance 20 strike
blow at big business, regardless Of th'
effect upon merchant shipping.
Expect Transfer Of Flag
Il 70 an open question what effect
this amendment will have. Some OF
tho large industrial corporations, such
rs the United Fruit Company, are nov
building vessels under the British flag
The Standard on Company has beer
making an extensive study OF operat
ing and building costs abroad, with th'
intention Of developing its feet undei
alien registry. Most Of these concern,
had their ships under foreign flags be-
FORE the war, and Il Is now apparent
that they will return. it Is probable
that IN the near future application
will bo made 70 the Shipping BoarC
FOR transfer Of registry. II this Is re-
fused the ships will be tied Up or sold
While more economical units are bull
up abroad.
A third important change was thI
increase In tho interest rate on th'
si25,0O0.0O0 construction loan funi
from TO a. per cent. This amend
ment went through the House practi
eally without opposition.
Interest Rate Satisfactory
The increase In the interest rate 4
~ per cent was anticipated, ant
Administration leaders were satisfied
that the Gguro was not set higher
They estimated the result as q distinc
advantage 10 shipbuilding, making
available a substantial fund at love
rates than could be obtained in th'
open market, and 90 a large exten
meeting the rates which foreign shiI
owners and builders are able to secure
Tae Shipping Board now has about
gfAsoo.000 In the construction loar
sun1, which, n shipping under th'
American flag becomes profitable, car
bs lent for the building Of modern
passenger and freight carriers. Thii
VIII supply the deficiency in capital
which has been apparent in the past.
The provision that no expenditures
shall be made from the subsidy fund
except through annual appropriations
~ Congress contains no practical dis
advantage. The board Is still author
e1ed 10 make contracts for ten years,
and there is no doubt that Congress