Evening star., 1935-05-03
QUIZ IN PROGRESS
ON SHIP SUBSIDY
Bill Creates Maritime Au'
thority and Would End
Mail Contracts.
BY WILL p. KENNEDY.

The administrations ship SUBSIDY
bill, which is expected to be passed at
this session of Congress, is now the
subject of hearings before both the
Senate Commerce Committee, OF
which Senator Copeland of New York
Is chairman, and the House Com
mittee on Merchant Marine, Radio
and Fisheries. These two chairmen
are Joint sponsors of the original leg
islation, but a new committee print
OF the measure has just been made.
The bill creates a Maritime Author
fly to administer the provisions of the
act and to assume the functions and
regulatory powers of the Shipping
Board 1t is designed to put an end
to existing mail contracts, with dec
laration similar to that in the 1916
and 1920 measures The mail con-
tracts are to be merged into the new
subsidy contracts which are to be de-
veloped. These contracts are to be
Cancelled upon payment of compen-
sation with indemnity for loss.
u. S. Would Advance Funds.
When new boats are found to be
necessary or desirable for foreign
service, this new Maritime Authority
would ascertain the difference in cost
of construction in American yards
and in foreign yards. Then the Fed
eral Government would put up that
differential-the ship owners paying
only the foreign cost. The Govern-
ment would advance the money and
supervise the construction.
Naxyt tho Ho Yifiyoo Authority would
ascertain the difference in cost CT
operating these ships in commerce
under the United States flag and SIM
liar shipping under foreign nag.
The Federal Government would pay
the difference in cost as an operating
subsidy to ship owners. But the ship
owner does not get this in cash. 1t
Is credited on what he owes for the
boat. If he doesn't borrow money to
build the ship or gets subsidy, or
has adequate boats, then he may col
lect the subsidy in cash.
Changes are being made in the
bill from time to time as suggestions
meet the approval of the committee
Best Men on Committee.
The House Committee was specially
made up for careful consideration OF
this ship subsidy bill. Word was
passed along to some of the best men
in the House that they should apply
for membership on this committee
because it was going to be one of
the most important in the organ
ization of the present Congress. For
that reason such men as Chairman
Mansfield of the Rivers and Harbors
Committee and Chairman Warren Of
the Committee on Accounts, with
other strong men, were drafted for
this service.
There is a third form of subsidy
provided in the pending bill-a So
called emergency subsidy to take
care of competition by foreign coun-
tries and companies-which runs for
only five years. The terms of both
the operating subsidy and the emer-
gency maintenance subsidy may be
adjusted by the maritime authority
annually. and in all such instances
where there is no agreement a court
Of appeals is provided.
The bill also reviSeS the laws re-
lating to Seamen and specifically
places authority now held by the
Shipping Board in the maritime au-
thority. In some respects it amends
also the regulatory provisions of the
existing law
The maritime authority would con-
sist of five members, no more than
three of whom could be of one politi-
cal party, to serve tor seven-year
terms at a salary of $4,000 The
initial appointments would be for
three, four, five, six and seven years.
so that each succeeding year there
would be one new member and six
veteran members on the board.