Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1936-07-23

seventy IOurCn
Ship congress was the
Subsidy ship subsidy bill.
Resid en:s of
farming communities and smaller
cities and towns in the interior
probably paid no attention to it
whatsoever. Nor was there any
outstanding reason apparent why
they should give thought to a rath-
er complex and yet far-reaching
piece of legislation. But it is i'm
portant even though the circum-
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
CIV 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.
1t 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 a 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 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 un-
derstandable what
ooHe 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, new ship
starting out begins its service with
handicap of greater cost upon
which return must be had if those
VINO invest their money in ships
are to receive profit thereon.
Then, there is further distinct
and important reason. 1 refer tc
national defense. 1t has long beer
tne conviction of military and naval
men that American freight and pas.
senger ships should be so designed
developed and constructed, thai
they might be converted to cats
factory use as auxiliary craft ir
ume OF war. In this connection il
Will be recalled that tremendous
sums were expended by our gov.
ernment in building ships for use
IN the World war. There was such
vast waste of money at that time
mat 1t 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 point strongly
stressed by those who favored the
snip subsidy legislation.
Now to link the importance of the
'rlp subsidy bill with agriculture
Link WAL American prod
""" ucts must have
'he Farm access to foreign
.o markets and this
less must be under fair and rea
Scolaole competition conditions
t;. reasonable and fair competi
I've conditions cannot be obtained
-. american built ships, constructed
greater costs because of the high
~ standards of wages and livine
american labor, and operated
S on basis of greater cost for the
nnn reasons do not have some
objection p,S from the government
for Use a nag they fly. They cannot
Go example, meet the freight rate:
Vuered by the Jananasa ,s,l,osa Ia,