Evening star., 1935-03-04

will maintain . reasonably adequate
American merchant marine I believe
that It can well afford honestly to
call . subsidy by its right name.
Approached In this way subsidy
amounts to comparatively simple
thing. It must be based upon pro-
viding for American shipping Gov
ernment aid to make up the differ
entail between American and foreign
shipping costs. It should cover first
the difference In the cost Of building
ships; second, the difference in the
cost Of operating ships; and finally,
it should take into consideration the
liberal subsidies that many foreign
governments provide for their ship
ping. Only by meeting this three
fold differential can we expect to
maintain a reasonable place in ocean
commerce for ships flying the Amer
lean flag, and at the same time main
tain American standards.
In setting up adequate provisions
for subsidies for American shipping
the Congress should provide for the
termination Of existing ocean mail
contracts as rapidly as possible, and
1t should terminate the practice Of
lending Government money for ship
building. It should provide annual
appropriations for subsidies sufficient
ly large to cover the differentials that
I have described.
Two Reports Submitted.
am submitting to VOL herewith
two reports dealing with American
shipping: A report of an interde-
partmental committee known as the
Committee on Shipping Policy, ap-
pointed June 18, 1884, by the Secre-
tary of Commerce. and a report to me
from the Postmaster General on ocean
mail contracts prepared pursuant to
an executive order Of July IL, 1894.
Reports which have been made to
me by appropriate authorities In the
executive branch Of the Government
have shown that some American ship
ping companies have engaged in
practices and abuses which should and
must be ended. Some Of these have
to do with the improper operating
Of subsidiary companies, the payment
of excessive salaries, the engaging in
businesses not directly a part Of ship
ping and other abuses which have
made for poor management, improper
use Of profits and scattered efforts.
Legislation providing for adequate
aid to the American merchant ma
rine should include not only adequate
appropriation for such purposes and
appropriate safeguards for its ex-
penditure, but reorganization Of the
machinery for its administration. The
quasi judicial and quasi-legislative
duties Of the present Shipping Board
Bureau Of the Department Of Com
merce should be transferred for the
present to the Interstate Commerce
Commission. Purely administrative
functions, however, such as informs
ton and planning, ship inspection
and the maintenance Of aids to navi-
CATION should, Of course, remain In
the Department OF Commerce.
Shipping Has Been Asset.
An American merchant marine Il
one of our most firmly established ira
ditions. 1t was, during the first hall
Of our national existence, a great and
growing asset. Since then it has de-
clined in value and Importance The
time has come to square this tradi-
tional ideal with effective perform
ance.
Free competition among the ma
tions in the building Of modern ship
ping facilities is a manifestation OF
wholly desirable and wholesome ma
tional ambition. In such free compe-
tition the American people want us
to be properly represented. The
American people want to use Ameri-
can ships. Their Government owes 1t
to them to make certain that such
ships are in keeping with our national
pride and national needs.
FRANKLIN D. ROOSEVELT.