The New York herald., 1922-11-22

than in criticism.
The point is that our feet. costing
approximately three billions. Is
worth only a fraction of that cost to-
day. Whatever that fraction may be,
the truth remains that we have no
market in which to sell the ships under
nur nresent policy, and program OF
surrender and sacrifice and the liqui-
dation which is inevitable. unless the
pending legislation Is sanctioned, will
cost scores of millions more.
When the question is asked. Why
the insistence for the merchant ma
rine act now? The answer is appar-
ent. Waving every inspiration which
lies In a constructive plan for main
tanning our flag on the commercial
highways of the seas, waving the pru-
dence in safeguarding against another
$4,000. 100000 madness Z war ever
again impels, we have the unavoidable
task of wiping out n S50000.000 an
nual loss in operation. and losses ag-
gregating many hundreds of millions
In worn out, sacrificed, or scrapped
shipping. Then the supreme humlia-
tion, the admission that the United
States-our America, once eminent
among the maritime nations Of the
worlds incapable of asserting itself
in the peace triumphs on the seas of
doubly humiliating when we own the
ships and fail in the genius and ca
oacify to turn their prows toward the
marts of the world
This problem cannot longer be
ignored, its attempted solution cannot
longer be postponed. The failure OF
Congress to act decisively will be no
less disastrous than adverse action.
Three courses Of action are possible,
longer to be avoided.
The first Is constructive--enact the
pending bill under which, firmly be-
| lieve, an American merchant marine.
| privately owned and privately oper-
| ated but serving all the people and
always available to the Government
in any emergency. may be established
and maintained.
The second is obstructive-continue
Government operations and attend
ing Government losses and discourage
| private enterprise by Government c. M
| petition, under which losses are met
by the public treasury. and witness
the continued losses AMI deterioration
until the colossal failure ends in sheer
exhaustion.
The third is destructiveness-in-
volving the sacrifice of our ships
abroad or the scrapping of them at
home, the surrender of our aspirations
and the confession of our impotence
to the world In general, and our hu-
initiation before the competing world
In particular.
A choice among the three Is inevi-
table. 1t Is unbelievable that the
American people or the Congress
which expresses their power will con-
sent to surrender and destruction It
| In N IL hot
and the Congress which translates
| their wishes into action will longer
sustain a program of obstruction and
attending losses to the Treasury.
l have come TO urge the construc-
| tive alternative, TO reassert an Amer
lean I'VE will" I have come to ask
you to relieve the responsible admin
istrative branch of the Government
| from a program upon which failure
and hopefulness and staggering losses
are written for every page and let us
| turn to program of assured shipping
| to serve us In war and to give guar
! anty to our commercial independence
I In peace.
know full well the hostility in the
/ popular mind to the word subsidy"
| il Is stressed by the opposition and
associated with special privilege" by
those who are unfailing advocates of
| Government aid whenever vast num-
bers are directly concerned. Gov
ernment aid" would be fairer term
than Subsidy" in defining what we
are seeking to do for our merchant
marine, and the interests are those OF
all the people, even though the aid
goes TO the few who serve.
IL Government aid is fair term
I and ] think II is--to apply to au-
thorizations aggregating $4,000. 900
TO promote good roads for market
highways 1t is equally fit TO be ap-
piled to the establishment and main
tenance OF American market highways
on the salted seas III Government
aid Is the proper designation FOR fifteen
to forty millions annually expended
J to improve and maintain inland water
! ways I'm aid OF commerce II Is
/ proper designation for a needed
assistance TO establish and maintain
( ocean highways where there is actual
commerce to be carried.
But call II subsidy" since there
are those who prefer TO appeal TO
mistaken prejudice rather than make
frank and logical argument. We
might so call the annual loss OF fifty
millions. which we are paying now
without protest by those who most
abhor IT, we might as we'll call that
subsidy" II so, ] am proposing
TO cut II In half approximately and
TO the saving thus affected there
! will be added millions upon millions
! of further savings through ending
losses on capital account-Govern-
ment capital out of the public treas
ury also remember--and there would
! be al least the promise and the
prospect Of permanent establishment
of the needed merchant marine.
/ challenge every lnsinuation Of fa-
vored Interests and the enrichment OF
the special few at the expense of the
/ public treasury. lam. first OF all. appeal
ing 10 save the Treasury. Perhaps the
unlimited bestowal of Government aid
might justify the apprehension OF spe-
| cial favoring. but the pending bill, the
| first ever proposed which carries such
provision, automatically guards
against enrichment OF perpetuated be-
Etowal. II provides that shipping lines
receiving Government aid must have
their actual investment and their op-
Grating expenses audited by the Gov
ernruent; that Government aid will
only be paid until the shipping enter
prise earns 10 per cent. on actualcapital
employed. and Immediately that when
more than 1 0 per cent. earning Ia reached
half of the excess earnings must be
applied 10 the repayment Of the Gov
ernment aid which has been previ-
ously advanced. Thus the possible
earnings are limited TO very reason
able amount II capital Is 10 be risked
and management Is to be attracted
\ n success attends. as we hope Il will,
the Government outlay Is returned.
! the irsprat tton OF opportunity 10 earn