Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1936-07-30

EASSSS
of legislation enacted by the late
-. seventy fourth
Snip congress was the
Subsidy ship subsidy bill.
Resid ents of
farming communities and smaller
cities and towns in the interior
probably paid no attention to it
whatsoever. Nor was tl,re any
outstanding reason apparent why
they should give thought to rath-
er complex and yet far-reaching
piece of legislation. But it is i'm
portant even though the circun-
stances under which it will be eff
fective may not so appear to the
agricultural sections of the country.
The new law provides an undis-
guised subsidy as the basis of en-
couragement for development of a
new American merchant marine.
It is the first time that such a poll
cy has been carried out by the
American nation and it is, there
fore, yet a matter to be tried out
before anyone can say definitely
that the results will be satisfac-
tory. Those who sponsored the leg
islation have long commended it
was both sound and sensible and
their argument prevailed in con-
gress.
Advocates of the measure say
that it will provide at least a
start for the construction of new
and faster and more efficient
American owned ships. They con-
tend further that the policy upon
which the nation has now en-
barked as regards shipping will
cost less in the end than other
disguised and concealed subsidies
that have been employed.
It may be necessary to recall
that the United States long has
paid what amounts to a subsidy to
ocean going ships in the form Of
excessive rates for the transporta-
ton of ocean mail. There are 43
such mail routes and the ships op-
Grating on these routes, conse-
quently, benefited to the extent of
the number of pounds of mail they
carried because the payments they
received were on pound basis.
This contribution from the fed
eral government enabled many of
those shipping companies to sur
vive.
But it is only natural that one
should ask why a subsidy is adj
visable or necessary at all. The
answer is plain. American owned
ships, ships flying the American
flag, are required by law to meet
numerous conditions that are not
required by any other nation of the
ships registered with their admiral
ties.
With these conditions, among
many others, it becomes easily I'M
derstandable what
Some difficulties con-
Difficulties front American
flag ships in COM
petition with world shipping.
Above and beyond the factors
just mentioned, it is a matter of
record as well that ship construc-
ton in the United States costs more
perhaps than any place else in the
world. Here again American stand
ards are influential. They bring
about higher wages and shorter
hours for American labor in Amer
lean shipyards. Thus, a new ship
starting out begins it's service with
a handicap of greater cost upon
which return must be had if those
who invest their money in ships
are to receive a profit thereon.
Then, there is a further distinct
and important reason. I refer to
national defense. 1t has long been
the conviction of military and naval
men that American freight and pas
senger ships should be so designed,
developed and constructed, that
they might be converted to salts
factory use as auxiliary craft in
time of war. In this connection it
will be recalled that tremendous
sums were expended by our gov
eminent in building ships for use
in the World war. There was such
vast waste of money at that time
that it seems incredible anyone
should ever make the same mis-
take again. But to avoid that mis-
take advance preparations are nee
essary and that is a point strongly
stressed by those who favored the
ship subsidy legislation.
Now to link the Importance of the
ship subsidy bill with agriculture:
Link With ucts must have
the Farm access to foreign
markets and this
access must be under fair and rea-
sonable competition conditions.
Such reasonable and fair competi-
tive conditions cannot be obtained
If American built ships, constructed
at greater costs because Of the high
er standards of wages and living
of American labor, and operated
on a basis of greater cost for the
same reasons do not have some
protection from the government
whose flag they fly. They cannot,