The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-13
PENDING SHIP
SUBSIDY BILL
FACING FIGHT
Revised Measure Expected
to Draw Score of Major
Amendments.
BIZ Times Specinl

~ itHes SpeciIl
WASHINGTON, Aug. ia score
Of major amendments are being
drawn by interested members of
both houses in preparation for
fight against the revised Copeland
Bland ship subsidy bill, just intro
duced. The original bill was opposed
by President Roosevelt. The revised
measure was supposed 10 meet his
objections, but there are indications
that it. too. may run afoul of the
White House
Most of the amendments that will
be offered are designed to protect
government funds from unScru-
pulous ship operators. They are be-
ing framed on the basis of informa-
ton produced in the Post Office
Department. Investigations of ocean
mail contracts.
The revised DILL introduced by
Senator Copeland ID, N. ". ig-
nores important recommendations
Of the Post Office Department in
connection with the granting of
construction subsidies. In this re-
Spect. the bill goes even beyond the
existing law so far as actual OUTLAWS
of government cash for ship con-
struction are concerned.
Examples Are Cited
For example. if it costs 81 500 900
to build in this country ship that
would cost only 100000 abroad,
under this bill the government
would put up $4,000 as a grant,
never to be repaid.
The next step would be for the
operator who wishes to build ship
to put up 25 per cent of the do
nestle construction cost. The gov
eminent would advance the rest as
a 20-year loan.
Thus the government would put
up S1.250,000 on a $l,500,000 ship.
At present, the operator must put
up at least S375,O00 and the govern
ments entire share of S1,125,000
must be repaid.
Another section not approved by
the Postoffice Department would
authorize a government loan of up
to 100 per cent, with repayment in
equal installments over a 15-year
period. The original printed copy
of the revised bill required that OPP
orators put up so per cent of the
domestic cost. as asked by the Post
office Department, but as intro
duced this section was replaced by
the 25 per cent rule.
Before revision, the Copeland
Bland bill provided subsidies for
foreign trade promotion. which set
virtually no bounds to the amount
of money that could be advanced.
Same Thing Contained
Opposition forced this out of the
revised bill. but the new measure
contains what pponents believe
would be virtually the same thing
For the new bill states that the
operating subsidy can be based on
the effect of foreign governments
aid to their shippers
1t is admittedly difficult to deter
mine to what extent foreign ship
ping is subsidized. because of COM
plicated subsidy systems which in
volve many indirect as we'll as direct
grantS-in- aid.
Opponents Of this section argue
that the proposed Maritime Author
ity. which would determine this
effect" of foreign cid, could grant
almsot any amount it wished since
proof of error would be difficult.
The bill also fails, it was said,
to protect the government under
the section providing for recapture
by the Treasury of earnings over
6 per cent on subsidized lines. To
determine the fairness of the valu-
alton on which the 6 per cent is
earned. it was pointed out, the gov
ernment must be in a position to
examine all the books of the COM
panieS involved.
The bill. however, provides for ex-
animation of books and accounts re-
lating only to maintenance and
operation of routes" and says moth
ing about the complete books and
records.