The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1934-03-19
National Defense One Object
Of Subsidies For Ocean Mail
By CARL c. CRANMER
Try Associated I'ressI

only job of the post office depart
ment. Z
Under present laws it has an
dertaken also to foster merchant
marine and to pioneer in air
transportation.
IN common with most large
countries, the United States sub
sidizes its merchant marine, and
in this country governmental aid
has taken the form of liberal
terms for transportation of inter-
national mails.
Not Paid By Weight
These ocean mail contracts, let
under the merchant marine act of
1928, are now under fire, along
with airmaiI contracts already an
nulled as a result of senate
committee investigation.
This law authorizes rates not
exceeding $1.50 a mile of out
bound voyage for mail on seventh
class vessels, or $12 a mile Oh
vessels of first class. with a slid
ing scale for intermediate class
vessels, regardless of whether one
bag or one ton of mail is carried
on the trip.
Under this system the post Of
flee department has paid to ocean
mail carriers during the five
fiscal years since enactment of
the law a total of $50, 1854. On
a weight basis the carriers would
have received $12,935,546, ac-
cording to department calcula-
tons.
Ships Must Be American
Last year the contractors re-
ceived $26,OO0,O0O, compared
with $3,OOO,00O they would have
received if paid on weight basis.
In one case an ocean carrier
would have received $10.40 for
mail on a weight basis, but re-
ceived $211,985 under its con-
tract.
However, creation of a mer-
chant marine, augumenting ma
tional defense and extending the
American flag on the high seas
were other purposes of the act.
The law provides contracts can
be awarded only to the lowest re-
sponsible bidder, who must be an
American citizen. Ships used
must be either American-built or
of American registry prior to
1928 and during the term of the
contract.
Building Specifications Set
The ships must be differed by
American citizens and manned
by a crew of which half are Amer
leans for the first four years of
the contract. For the next six
years of the contract the crew
must be two-thirds American.
The law also requires the ships
be built according to specified
tions approved by the secretary of
the navy, or otherwise be suited
for prompt and economical con-
version into auxiliary naval YES
sells.
The postmaster general in his
contract can stipulate that GER
tain number of new vessels be
built or old ones reconditioned.
Under such conditions 81 new
vessels are required in the 43 con-
tracts now in force, IL Others
are conditionalIy required and 81
old ships are required to be recon-
structed. BY last July, 80 of the
new ships had been built and DO
of the old ones had been recon-
structed.
The total cost of construction
and reconstruction under the con-
tracts is estimated at S16O,OOO.-
900.
Loans Aid COnsruetiOn
The merchant marine act of
1920 also created a 25,O0O.eOo
fund with the United States ship
ping board to be used for loans
to encourage ship building.
Prior to 1891 ocean carriers
were paid only the postage earned
for carrying the mails.
But the formation of the Uni
versal Postal Union in 1874 pro-
vided reciprocal agreements by
which each nation was 10 deliver
mail of foreign origin free Of
charge in its own territory and
retain all postage receipts for mail
10 be delivered in foreign coun-
tries.