Salt Lake Telegram | 1936-09-25 | Page 5 | Mail Subsidy to be Altered

MAIL SUBSIDY TO BE ALTERED WASHINGTON Sept 25 UP jP- jP Drastic changes In the method by which American ships now carr carry oceanic mails w were re under cration today at the postoffice de department department department de- de as as a result of the creation of ot a new maritime commission Keener competition between fer- fer owned eign-owned a and American vessels to obtain mail cargoes will undoubtedly undoubtedly undoubtedly edly result if the tho contemplated changes are made one official as as- The maritime commission will administer administer administer ad ad- minister a new law which alms aims to replace the present indirect subsidies subsidies sub sub- sidles to the American merchant marine with a system of direct subsidies sub sub- sidles The indirect subsidies ar are granted through ocean mail mall contracts contracts contracts con con- tracts the new subsidies will havno have hav no link with the mail mall service Special mail contracts will be bo terminated terminated ter ter- and the mails will be carried car car- care ried on a poundage basis Among changes being considered by the postoffice department are arc 1 L 1 Elimination of ot the time differential dif dif- dif Current postal regulations give ive American ships a leeway of 48 hours For example an American vesse vessel sailing a day and a half later than thana a a. foreign ship is 15 considered eligible technically to carry mails which could have been sent on its rival l. l 2 Elimination of the poundage differential Certain ships not under special specia mail contract are paid so much pe per pound but there there- is a wide rang now between poundage rates allowed foreign vessels fixed by the Universal Uni versal Postal union and those thoe paid American vessels in an indirect sub sidy