Evening star., 1932-09-04
SHIP SUBSIDY ON WORLD SCALE
BY FREDERIC J. HASKIN.

public market. The action, of course.
has the sanction Of the French govern
ment.
Italy, since the war, has greatly ex-
panded her merchant marine. She has
sought to revive her old-time sea glories,
her heyday of navigation, when her
Cabots and Columbuses were on every
sea. The private companies have ef-
fected several important mergers. Where
there were numerous scattered small
companies there are now four large
merged lines which control 100000
tons Of shipping.
The government has recognized these
efforts by reviving direct subsidies,
shipping bounties paid out Of the public
treasury. These bounties are based on
a progressive principle. They are paid
to companies which scrap old tonnage
and build new. This affords employ
ment in the shipyards and insures the
best OF modern vessels for the Italian
merchant marine. There Is pro-
vision, OF course. which grants use Of
these vessels TO the government In time
of war.
Government Aid Needed.
Even Japan, which rose to a mighty
position in the shipping world, has been
oeAOAA6Ay eoASAiC0 ny Tile LlI1eS, ana the
great Nippon Yusen Kaisha and the
Osaka Shosen Kaisha, principal inter-
oceanic lines, have Joined in an agree
ment to stop competition, allocating
routes, establishing joint Offices in for
eign ports and generally avoiding
Implications. A Shipping Cooperative
Society has been formed by the tramps
Tor the purpose of eliminating compe-
tition in that field. Japan has con-
sistently paid ship subsidies in the form
CT mail contracts and last year paid
2,650,OOO yen In this manner. Addi-
tlonal subsidies are under considera-
ton, as well as system of ship boun-
ties to be paid for the scrapping of old
SHIPS and making modern replacements
Tie Japan Shipowners' Association has
put forward a plan for tying up about
100000 tons to reduce competition and
improve rates.
Most important Of all from the point
OF view of world shipping have been
tEe British actions. The National
Shipbuilders' Security has been organ
lzed and the Royal Mail Steam Packet
Co. reorganized for the purpose of as
sisting in the naturalization of the
building and operating branches of the
entire industry, The Security is work.
Ing to scrap obsolete shipyards and
merge companies, and to this end has
acquired II yards and 81 berths with
an annual construction capacity Of
$4,000 TONS
The Royal Mail Steam Packet reor-
ganlzation already has formed two new
operating companies. to which are being
transferred 100 ships free of mortgage.
Inc British mail subsidies are substan-
tial, but 1t Is believed that a better
allocation OF services and routes and
diminution of the surplus facilities
which now exist will be worth more
than the government aid.
THESE measures are possible In for
elgn countries, where they would not
be In the United States. The merrers
and naturalization schemes, involving
the elimination Of competition. would
be contrary to the Sherman law as
being in restraint Of trade, If attempted
by American flag ships.
American shipyards have passed
through rather busy period, but now
are moving into q dificult one. The
ships, orders for which were given he
fore the depression started. now are
being completed and, lacking new
orders. there will be q heavy slump In
tne business unless an immediate up-
| turn appears. -