Evening star., 1936-05-05

which to choose. The first course Of
action open to the Congress might be
to remove all Of the standards from
American shipping. This would mean
that a ship built with coolie labor in
China, or financed by the depre-
ciated mark and built in Germany
could operate under the American flag.
1t would mean that Seamen Of any
nationality would be eligible for en-
ployment on American ships. This
could result in nothing else than low
wages and intolerable living condi-
tions. Furthermore, our few existing
commercial shipyards would stand idle
henceforth. do not think any Ameri-
can citizen would seriously consider
this as an answer to our problem,
Favors Private Ownership.
The second possible solution to our
problem is Government ownership and
operation. The traditional American
policy is to foster private initiative.
favor privately owned and operated
merchant marine. l am of the firm
conviction that American ingenuity,
native ability and shrewd business
sense can, and will. result in a pri-
vately owned American merchant ma
rlne in which we may take pride, if the
Government does its part in placing
| the American shipping industry on
| an equal footing with our foreign
| competitors. However, should private
capital be unable or unwilling to as
sumo its share of the burden of build
Ing and operating vessels-then, and
| then only, do favor direct action by
the Government to protect this Ma
| tons position on the sea.
The third method of solving the
problem is the honest, straight-for
! ward program recommended to Con-
sreSs by our great President, Franklin
D. Roosevelt. In his message to Con-
gress of March 4, 1885, recommending
shipping legislation. the President rec
| ognlzed the necessity of an American
merchant marine and recognized the
further fact that building and operat-
ing costs, and subsidies paid by for
elgn governments, place the American
shipping operator at a distinct dis
advantage in comparison with his for
eign competitor.
The President made certain con-
crete recommendations, the first of
which was that Congress make pro-
| vision for meeting the three-fold
handicaps between American and
foreign shipping costs. He recon-
mended that the Congress can we'll
AFFORD honestly to call a subsidy by
Its right name instead of appropria-
ing large annual sums under the guise
Tor payments of ocean mail contracts
he urged that improper practices and
abuses should and must be ended. He
referred to improper operating of SUBJ
slolary companies. The payment of
excessive salaries and bonuses, and
other widely known abuses which have
made for poor management, improper
use OF profits and scattered efforts
IL Is not my intention to dwell. this
evening, on these wrongdoings of the
past. Cures for these evils will he
included in constructive law which
mas as its main purpose the rebuild
ing OF our merchant fleet in accord
ance with the recommendations of
our Chief Executive.
1928 Subsidy Act Faulty.
The disclosure of these improper
practices is not the major reason for
repeating the merchant marine act
OF 1928. Since that act was passed
we have increased our merchant fleet
by the pitiful total of 81 ships. There
Is need for constructing this number
during each of the next seven or eight
years. 1t would be impossible to re-
alize that objective under the 1928
act, which has not met with the sue
cess that was hoped for when it was
enacted. Prior to 1928 the Govern.
ment had little experience with sub
sides for the shipping business. In
amount, and in manner of applica-
tlon. the subsidies authorized by the
1923 act were faulty For example.
some steamship lines have been paid
subsidy at the rate of So per mile
Ior vessels capable of making a speed
OF IL knots on mail-contract voyages.
Recent speed tests have shown, how
ever. that some of these vessels can
not make the contract speed. Hence
tneir, mail pay has been reduced. This
reduction. like the original contract,
ooes not take into account competitive
factors which should be considered in
extending financial aid to the steam.
ship operator.
IL Is better to seek an adjustment
OF the system than to stand bv, and
see our merchant marine rapidly dis
appear because the technicalities of
the system would prevent proper Gov
ernment financial aid Commenting
on this precise situation, the Presi-
oent said: Given under this dis.
guised form. 1t is an Unsatisfactory
and not an honest way of providing
the aid that Government ought tn
give to shipping. I propose that we
end this subterfuge" Several SUBJ
sidy measures are now pending before
congress. One bill. sponsored BY
schuyler Otis Bland. passed the
House during the last session of Con-
gress. 1t Is now before the Senate
Three other measures are also before
the Senate. One OF these was intro.
duced by Senator Copeland OF New
York. Another was offered BY Sena-
tor Gibson OF Vermont and another
was introduced by myself. Thus we
md four measures before the Senate. |
representing divergent viewpoints ON
the ways and I,eans OF rebuilding and
operating our merchant feet In line
with the Preatdent's announced poll.
rica
Amendment Explained.
u has been the desire Of the Presl.
lent that these divergent vIsws be
brought into harmony undertook
his laAk and today introduced IN the
senate q proposed amendment to the
bland bill Thla amendment IA the
esull NJ IN earnest da 10 10 eIm.
pss the different ldeat shleh have
zen advanced a. paxaibls solulions |