The Washington times., 1935-03-28
BY United States Senator Wallace
H. White, Jr., Of Maine.


H. White, Jr., of Maine.
With the Presidents view that
aid to American shippers in
foreign trade is necessary and
that this aid should be given di-
rectly rather than indirectly, I
am in general accord.
In my early efforts to secure
Merchant Marine legislation, !
incorporated as a vital part Of
the plan of aid, provision for di-
rect subsidy. Opposition by mem
berS of the Presidents party COM
PEELED the abandonment Of such
direct subsidy and forced recourse
to the indirect aids authorized in
the 1928 act, If any legislation
was to be secured. I still doubt
whether approval Of a direct sub
sidy can be secured from the
Congress, but I am ready to CO.
operate in the Administrations
effort to this end.
Denies Loan Failure
do not agree with the Presi'
dents statement that the con.
struction loan fund has been q
failure. I deny also that ocean
mail contracts have failed Of their
purpose. There have been grave
errors in the past in the admin
istration of these titles of the 1928
act, but both have justified their
enactment and both should con-
tinue to be utilized in proper
cases.
The beginning Of operations
under the act Of 1928 preceded
the industrial and trade debacle
Of 1929 by a few months only.
These operations have been car
ried on under conditions that
have reduced international trade
to pitiful proportions and indus
trial activity within our country
to the lowest ebb. Our shipping
companies in the circumstances
confronting them have performed
as creditably as other businesses.
Banks, railroads, farms, mills
and the Government itself have
been in as deep red as our ship
ping companies. Our ships have
faced the competition of the
world and in addition the con.
tinued threat of those in the Con.
gress and without who would dis
honor their Governments con.
tracts and deprive the companies
of the rights assured them there
under.
Success Is Cited
In spite of these adverse eco.
nomic conditions, aggravated by
political hostility, the accom-
plishments under our shipping
policy should be a matter of sat.
isfaction to the nation, and an
encouragement to us in our ef.
forts to give America her rightful
place on the oceans of the world.
What are the facts with respect
to lending money for ship build
ing?
From 1922 to 1928 inclusive,
not a single ship was built in the
United States for the overseas
trade of the United States. In
the same period of time more
than 800 foreign vessels were
placed in our trade by foreign ma
tions. They were the chains
threatening to bind us in sub
servience to foreign agencies and
interests commercially hostile to
America. Under this 1928 act 80
vessels have been built and 40
have been extensively recondi"
toned. These contributions to
our Merchant Marine were made
possible through loanf under this
Construction Loan Fund. Out OF
the total amount loaned to jan
uary /, 1888, the arrears in pay
ment of both principal and in
terest was less than $2,290,000.
This record does not spell
failure! Whatever administrative
mistakes have been made, this
fund has justified itself.
There is no other source than
this fund for capital for ship
construction and the problem OF
ship requirements throws its
shadow across our whole marine
problem.