Evening star., 1934-03-06
ROPER DRAWS NEW.
SHIP SUBSIDY PLAN
Granting Specific Sums for
Maintaining Services
Urged in Forum.


under which specific subsidies would
be granted for the maintenance of
essential services. was advocated last
night by Secretary of Commerce
Roper in an address in the National
Radio Forum, arranged by The Star
and broadcast over coast forecast
network of the National Broadcast
ing Co.
These subsidies, the speaker said.
should be based on ditferentials in
building and operating costs tbetween
American and foreign shipping, and
which likewise constitute the present
baSis) but should be flexible enough
to permit adjustments as changes in
conditions and circumstances may
warrant. Furthermore, subsidies should
not be granted to more than one line
competing in the same trade route -
Secretary Roper said also that where
the Government pays out subsidies
1t should have authority to examine
books at frequent intervals of the
creditor companies. establish uniform
accounting and scrutiniZe carefully all
items of cost"
Roper who now is in charge of
merchant shipping, defended the sub
sidy principle as necessity, in view
OF the higher costs Of material and
labor prevailing in this country.
Text Of Address.
Secretary Roper's address follows:
A guiding principle of democratic
Government in the United States has
been and is the welfare and progress
OF the human element in life. This
has not been haphazard develop
ment. 1t is a definite principle and
has grown out of the very essence of
democracy. We have Government
founded upon the fully conceived and
thoroughly stated proposition that the
people are capable Of ruling them
selves and that the people. as human
beings, should be given primary con-
Slderation in the objectiveS and
functions of such Government.
This philosophy has worked nat
urally toward higher standards of
living. and We pride ourselves as a
Nation in believing that human in
terests in the United States has
reached higher plane of develop
ment than in any other country. 1t
is only natural that these concepts
and purposes, fulfilled in our high
standards of living, should bring us
into keen competition with other
nations where working and living
standards are lower than ours. This
condition applies as much to ocean
trade and commerce as it does to
strictly internal or national aspects
of our economic lives. Hence, due
to higher standards of living and wage
scales, the ship-building and ship
repair costs in the United States, and
Ship-operatiOn costs under the Ameri-
can flag are higher than in other
countries.
For instance, the construction and
operation costs of British ships are
nearest to the American scale or aver
age, but Ship-building costs in Ameri-
can yards are on the average cOnSid-
cradle higher than British costs. The
higher American costs are largely in
labor and materials. Any greater
efficiency which may be presented in
the operation of American vessels Is
not sufficient to offset the lower costs
Of living In other countries.
cultural country, interested primarily
in marketing raw materials abroad, it
didn't matter so much whether raw
materials were transported in Ameri-
can or foreign bottoms. Foreign
countries needed these raw materials
and the United States encountered
scarcely no competitive problem in
selling such raw materials. But, as
the United States advanced to its
present status Of development in man
ufacturing. our quest for markets
abroad was naturally increased and
the competition in the sale of manu.
factured goods became an active and
primary consideration. Today, there
fore, there exists the necessity Of
marketing large quantities Of manu-
factured goods in our own shipping
bottoms
Necessity OF Ships.
As an economic necessity, the for
eign trade development of the United
States depends largely upon the use
of American ships for carrying Ameri-
can goods. 1t is essential that we
maintain an American Flag tonnage
on important trade routes, to serve the
needs Of our commerce and to safe
guard against war and other emer-
gencieS which might disturb the nor
NAL flow Of American commerce.
But it is not alone from the COM
petitive and essential economic stand
point that We must view the develop
ment of our merchant marine. The
merchant marine is an important
and, We may safely say an indispens-
able factor in our national defense.
Obviously, it is not practicable to
maintain within the Navy all the veS-
sells which might be necessary in event
of war. To do so would require
huge outlay of taxpayers money and
might tend to encourage unnecessary
defense expenditures.
Speaking, generally, the same types
of ships which are necessary from
the commercial standpoint in time of
peace are required from the defense
standpoint in time of war. Our World
War experience is striking teSti-
mony to the value Of an adequate and
efficient merchant marine and con-
elusive proof of the handicaps i'm
posed and excessive expenses incurred
through the lack Of an adequate
merchant marine. Upon the entrance
OF the United States into the World
War, We had to depend to great
extent upon foreign ships for trans
port and military purposes and for the
import and export of raw materials
and manufactured products Much of
this transportation had to be done at
an excessive cost to the American
Government and also was severe
handicap to naval and military ope-
rations.
Thus, from both the commercial and
defense standpoints, it would seem
that for the economic Self-respect,
the military self-respect and the pride
OF the Nation, an adequate and proper
development and maintenance of an
American merchant marine Is fun
damental necessity.
The practical question in view OF
these conditions, which early arose
apd is still before uS is the Wav in