The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-07-19
ship SUBSIDIES
MAY PLAY PART
IN DOCK STRIKE
Payments, Under Probe
May Be Used as Lever
to Bring Peace.

~ Scripps-H9Oaya NeirspaDer Alliance
WASHINGTON. July I8.-Federal
subsidies TO shipowners NAV play a
part in settlement Of the west coast
shipping strike.
Most o. the steamship companies
against which lOngshoremen and
maritime workers are striking hold
contracts FOL carrying ocean mails
under which they are paid cOnsid-
erabiS more than the cost Of such
transportation.
President ROosevelt's decision 70
investigate these contracts. coming
as 10 does az the height Of the gen
eral strike ia san Francisco and
while efforts are being made TO
avert similar situation IN north
western ports. may indicate that
he viii use these subsidies as lever
10 force settlement Of the shipping
dispute. IL is believed here.
The President has authority 70
modify or cancel all ocean mail con-
tracts. under blanket powers con-
ferred on him By congress.
His order calls for investigation
Of contracts held by eastern and
gulf steamship companies as well as
those on the west coast. and allows
six months for completion Of the
task. Action Of this sort has been
expected since airmau contracts
were cancelled.
Serves As Warning
= However the new order serves as
timely warning 70 shipping cOmpan-
les that the government is in a pO-
sition to enforce collective bargain
ing. If il sees TT. IN even more
potent fashion that it has employed
where industries are under NRA
codes.
Ten steamship companies Operat-
ing from Pacific ports received
S15,765. 448 from the United States
government IN three recent years
carrying ocean mails. If they had
been paid on a weight basis-aS
they were before passage Of the
ship subsidy act of 1928-they IOuld
have received S3.G71.667
II was paid IN 1929, 1880 and
parts Of 1923 and 1881. The same
Contracts are still in effect and the
total subsidy to date Is approx
nately twice as large.
Dollar lines received the largest
payments.
For the three years tabulated
their total was s6.604 704 On a
weight basis the mail they carried
for the government would have
brought them S994.672. Admiral
Oriental lines. owned by the same
interests. received another $685.
O98. just about twice the weight
basis cost of carrying its mail.
Dollar Lines Get Huge sum
In addition. Dollar lines borrowed
s11.OOOOOO from the government at
interests rates ranging from 27s per
cent to one fourth Of 1 per cent,
Tor construction Of new vessels.
Pacific Argentine Brazil line. OPP
Grating out of San Francisco. re-
eeived SI6.756 for carrying one
pound OF letter mail on trip to
Buenos Aires. The cost would have
been s0c on a weight basis. All
the mail carried by this company
in three years would have cost the
government S347.12 before passage
Of the subsidy act As it was the
government paid S759,036.
Oceanic steamship company re-
ceived SI.915.626. a little more than
three times the cost of payments on
a weight basis.
Oceanic and Oriental Navigation
COMPANY received S14.145 for carry
ing sos worth of parcel post to
New Zealand. Altogether 1t got
s1.5s5. $50 for mail costing S47,983
to deliver on weight basis.
Claim Subsidy Failure
Panama Mail got S443.152 instead
Of s4.676. Grace Steamship Com
pany. S238. 500 instead of S458:
United Fruit Company lines out of
San Francisco. 1892, $50 instead of
s8.Ol4.
& Members Of the senate committee
which has been investigating ocean
and air mail contracts estimate that
for the country as a whole the gov
eminent has paid out Sl00000OOO
$50
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