The Waterbury Democrat., 1935-06-18
Merchant Marine Act
 OF 1928 Condemned
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l .... -. | ing legislation covering minimum requirements" for safe ship con struction and operation. They had the benefit of material assembled by Senator Copeland's special investigators of the Mo- hawk and Morro Castle. They found 160 passenger ships are fire traps' and that 1,500 non- passenger ships are not equipped with radio. Meanwhile the house merchant marine committee attached a rider to the Bland Copeland ship subsidy bill giving the United States the most rigid laws in the world cover ing shipowners liability for passen- gers lost through negligence. The rider was offered by Repre- sentative William l. Slrovich, dem ocrat, New York, committee | member. Replace Subsidies The subsidy bill, approved by the committee, provides construc- ton and operation subsidies to American shipowners to replace the widely criticized ocean mail subsidias.
 Sirovich's rider would make ship-owners liable in loss of life suits for negligence up to $60 per registered ton of the ship. In ad- dition, the company can be held responsible up to the full limit of its assets if a master, agent or superintendent had prior know iaA1A ttat n oh ts n A n tay..p pAh Another provision in the bill gives six months instead of 30 days In which to file claims against the company for injuries or death and an additional 12 months to file suit. It grants six per cent differential on construction contract bids by Pacific Coast shipyards on ships for Pacific trade.
 Report Condemns Marine Act Washington, Juno 1S-(U.P.) )-- A special senate committee investi- gating ocean and air mail contracts to-day demanded immediate repeal of the merchant marine act of 1928 charging 1t had been administered with startling disregard for public interest"
 Maladministratio of the act, the committee said, had caused marine subsidies with ''real reason to be- | come known as pie" The report sharply criticized tho United States shipping board, object of an attack by Ewing Y. Mitchell, busted as- sistant secretary of commerce. The merchant marine act, in- stead of producing an adequate American merchant marine has brought "a plague of unconscion- able exploiters, intent upon ringing every possible penny from the pub lie purse, while giving an absolute minimum of service in return" the report state.
 Tiocus Focus Holdings
 ias facilitated every conceiv- able orm of holding company, subsidiary, affiliate, and associated corporate hocus-pocus.
 Tt has financially assisted fav- 4 orcd operators in tho protected and sepi-protected trades against com petition relative to unsubsidized American-fiag enterprises.
 while 1t has given birth to a situation to the liking of unscrup- ulous, self-seeking individuals. 1t has caused the marine subsidies of this nation with real reason to be- come known as pie"
 The committee analysed different methods of building an adequate American merchant marine, re- commenting government owner ship and operation or government ownership with private operation.
 It's attack on government subsi- dies and private ownership opera ton was supported by resume of evidence discovered during It's in- vestigation and that the post office department.
 Never Was Good Act | "The merchant marine act of 1928. according to It's terms, vas designed to create and maintain an adequate merchant marine, ulti- mately to be owned and operated privately by the citizens of the United States" the report said. "While this act was fiagrant'y maladministered, 1t Is incapable, even if administered with maxi- mum efficiency. of providing an adequate American merchant mar inc at reasonable cost"
 The report said fits administra- ton had been distinguished by startling disregard for the public | interest.
 "It is conspicuously devoid of those safeguards which should ai- ways accompany grants of public money to private persons for the effectuation of a public purpose.
 Public officials have been en- couraged to believe that the act actually meant what it did not say and that they should administer it | Gas they had administered it) up- on this essentially unsound basis" Not Administered Honestly The report said the post office department did not have proper facilities for administration of subsidy.
 The history of marine subsidy in the United States" the report con I----------------------------