Evening star., 1936-06-21
CONGRESSPASSES
5SH|P SUBSIDY BILL
FiIibusterers Score Victory
! by Holding Up Appro.
/. ..u
priation Bill.
w the Associated Press.

Ny the Associated Press.
A victory for Senate fllibusterers
was recorded yesterday with anal
congressional approval Of legislation
to expand the American merchant
marine through direct Government
subsidies
With that measure started to the
White House for President Roosevelta
signature, Senate group which had
blocked, by hours of talk, approval of
a conference report on the $es2, ,620,-
S72 Treasury-Post ONCE appropria-
tion bill, sat smiling while the supply
bin was voted.
The Senate adopted in connection
with the bill a resolution by Senator
Barkley, Democrat of Kentucky, for
an investigation by q special commit
tee .of five Senators on ocean trade
routes between the United States and
South America.
Purpose of Inquiry.
The inquiry would seek to deter
mine the necessity of additional ships,
contracts between the United States
and any steamship line and what obh-
cations the Government owes toward
security holders of any steamship line
or other operators on account of ex-
isting ocean mail contracts.
The speech h-making-aimed at hold
ing up final action on the appropria-
ton measure until the House acted
on the subsidy bill-went on for sew
eral hours Friday and threatened
plans to adjourn Congress last night.
1t started early Friday afternoon
when the Senate passed a substitute
to a House ship subsidy bill. The
Senate measure provided for Govern
ment grants up to so per cent Of the
cost of building vessels.
Shortly thereafter, Chairman Glass
of the Senate Appropriations Com
mittee sought approval of a confer
ence report on the Treasury-Post Of
fee appropriations bill, which in
cluded $26, 100000 for ocean mail
contracts under the present mail sub
sidy system.
A number of Senators headed by
Black, Democrat, of Alabama and
Clark, Democrat, of Missouri prompt
" voiced a determination to talk as
long as necessary to keep the appro-
priation measure from becoming law
before the House had acted on the
ship subsidy bill.
Opposed Present Practice.
The filibusterers, vigorously opposed
- - Yf1ir1er
contracts for transporting ocean mail,
feared that if money for continuing
it was provided the House would not
pass the subsidy measure.
Under procedure which required a
two-thirds vote, the House Friday
night refused, 118 to SO, to agree to
the Senate amendments. Yesterday,
however, it approved the Senate
measure, 225 to 81, with one minor
amendment.
Quickly. Senator Glass, who had
been awaiting that moment for sew
eral weary hours, asked approval of
the appropriation bill conference re-
port. That measure was sent to the
White House without debate or rec
ord vote.
During the House debate Chair
man Bland of the Merchant Marine
Committee said he was authorized
by Secretary of Commerce Roper to
say he wanted the bill Gin order
that we may get away from ocean
mail contracts and get down to a
basis providing employment In every
State of the Union"
The measure would create a United
States maritime commission of five
members to administer the program,
which is intended to increase the
amount of commerce handled by
American ships and to provide ad-
ditional vessels for use in the event
OF war.
With the Government paying up to
80 per cent of the cost of ships, the
operators would be required ordinarily
10 put up 25 per cent Of the cost in
cash. The Government would lend
the remaining 25 per cent at 311 per
cent interest to be repaid in 20 years.
The Government, however, could
build a vessel itself and charter it to
reputable operators Subsidies also
would be paid for operating the vessels,
the amount to be determined after an
investigation of the relative costs here
and abroad
Limit on Salaries.
Salaries paid officials Of subsidized
companies would be limited to SIS, 900
a year.
Holders of ocean mail contracts can
celed under the new legislation, as
well as the Government, would be per-
mitted to appeal to the Court of Claims
from any award by the Maritime
Commission.
All net profits in excess of 10 per
cent realized by the Shipbuilder on a
vessel constructed with the aid of a
Government subsidy would be subject
to recapture by the Government from
the shipbuilder.
All net profits in excess of 10 per
cent earned by a private owner on
vessels aided by the operating subsidy
are to be shared equally between the
Government and the private owner.