The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1923-11-28

other makers of that paper to have
bought back their bonds, on which
they borrowed 100 cents on the dollar
from the Emergency Fleet Corpora
ton during the war, at seven to nine
or ten cents on the dollar-and it
would be interesting to know wheth-
er any of those bonds did reach
their makers at about that percent
age, anyway. And, conceivably, the
makers of those securities have Dor
rowed from the merchant marine
construction fund-to build or to re-
construct ships, of course-at two
per CEN interest, the money which
could have been diverted to buying
back those bonds at less than ten
cents on the dollar.
"To the extent required" as the
clause was worded meant anything
the board saw fit to lend. The
board under that clause could, to
favored interests, have extended the
time Of the loans to any term of
years it saw fit-20 OF 25 years,
perhaps-and could have allowed the
payment of both interest and prin-
cipal to be deferred-as was done
time after time by previous boards
to any term it saw fit.
The failure of a concern borrowing
under those conditions would have
involved tremendous losses to the
| government-as tremendous losses
were involved in many, all too many,
instances under just such circum-
stances. Former shipping Boards.
under pressure from persons with
heavy political backing and strong
influence did do those things. Then,
as the Merril-Stevens and other
deals in the past, where paper was
taken which later proved worthless,
the firms failed and the Shipping
Board "held the bag" And such
things undoubtedly would have oc-
Cured again.
And, while Mr.. Lasker told the
country the Shipping Board could be
got out of the shipping business
quickly this way-this very clause
| set up a condition which would have
kept the Shipping Board in the ship
ping business for at least Is years
or longer.
Now let us see what other priv
ileges were arranged for the private
shipowners.
In Section 2O3 Of his subsidy bill
Lasker sought to amend the Jones
act to prOvide-among other things
the exemption of the ship operator
for ten years at least from any pay
ment of income tax on his ship earn
ings, which, of course, included the
subsidy the operator was to draw
from the government.
Would Messrs. Sapiro, Baruch anC
Meyer consider a similar arrange,
ment for the farmers? If so, they
should be able to get Mr.. Lasker t.
help put it over. Lasker told thu
Joint Senate-House committee tina
eff you will give me just six months
away from here I will try to he'll
you solve the agricultural problem
too
Under such a scheme, the farme
could buy more land with the none,
he thus acquired-and then borroV
at two per cent interest from tn
; government two-thirds the cost of tn
land. The farmer would like that
undoubtedly.
Lasker apparently didn't stop t
figure of how much money this woul
deprive the Treasury. He seemed t
6 think that as long as the money wa
not allowed to reach the Treasur,
: it wasn't costing the people any
thing.
Of course this clause didn't hel
the little ship operator who woul
have small net earnings. But
would have amounted to tremendol
sums for the big operatOrs-inclu'
ing some companies which opera.
e their ships as an incidental adjun
n to their regular business. But v
d muse remember that Mr.. Lasker w
planning several gigantic corpor
,e tions, one of which the Fleischhack
10 boys, bankers, of San Francisco, we
to head. Lasker wasn't thinking
the little fellows-A thinks in a b
st way.
Another nice little tax exempt
clause was tucked into this sectiC
p It was to The effect that five 2
IS cent of the amount of ocean freigF
RS paid by any corporation or individl
nd from his NET INCOME TAX PA