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Show , PRESIDENT URGES SHIP SUBSIDY I HELP COMMERCE II Grovernment Would Encour- i ae Merchant Marine By G-iving- Subsidies METHOD OUTLINED J Return to Private Initiative , I of U. S Ships Is Urged By Chief WASHINGTON, Feh 2 The ad- I !! m for o ,rn n-.ent aid ' net marine t to eungrevq tola- President rfardlng with the declare j thai the influencs or the United ; States In world councils Is "sure to be : that unfailing standard . I vh;. h r i nind in a nation's merchant H The president detailed to the two H ' hous, s assembled in Joint session the H i i rcaii on or America s grear an experimental venture as M I he described It and ;hen h added: in failed ."ich enormoc." W H I iropo-al which H ocntemplates lhe return to private in- li Illative and private enterprise, to a H .vhereln we are I safeguarded against tlie promotion of private greed, and do not discourage if H the hope of profitable Investment 1 I ch underlies all successful endca- HI 1 I'll.- salienl points of this proposal 1 In bills Introduced in each II house immediately after the prest- S address follow: n stlmated at 132,000.000 annually to be provided for principal- ly bj diversion of ten per cent of th- Requirement that not more than 50 per cent of immigrants to tho United & States be transported in foreign ships. Sale of the tonnage now held by the l shipping board and use the funds as H ..n-t ruction loan fund. t" 1 Authorization "for induction of Am- I erlcan met m fleers and sail- HI ers Into the naval reserve with the at- I Cendant allowance in pay. 6f 1 I I ' 1 1 IHRESS. The Lexl of President Harding's ad- la on government t I aid for the American merchant marine follows: ( M PARI M. 'Members of congress: Win n addressing the congress last f December, 1 reported to you tho fail- Of the executive to carry out the II intent of certain features of the mei - ; I Ol 1920, notably the provision for the notice of cancellation all i ommerclal treaties which hind- H f 'I our grant ot ili.serimiaiatlng du- H tie-- on imports brought to our shores H in American .-hips. There was no H d 'uoi ii Lhe l.ih purpose of con- H eress to snnly this oroven Dractlce to II lliu upbuilding ot' our merchant ma- I H rlne. It bad proven most effective in ft'- H the earlier days of American shipping . I H it had at various times, demonstrated I H is effectiveness in the upbuilding of k . immerclal shipping for other nations. 'Tho succss of the early practice for j this republic came at tho time when f H bad I"' I tnerce was little developed. u CAN'T DENOUNCE DltEATIBS "Its house ptocedlltc by rei l . HsH in shipping regulations and the adop- ll tion of other methods of building mer- Hj chant marine forms, through govern- BSl aid and the century neotia- II tlon of commercial treaties, all com- ff H bun d to develop a situation which H snould lead to endless embarrassment H if w-e denounced our treaties. We H snould not only be quit? alone In sup- H porting a policy long -nice nnf ic-..Je, through the growing Intimacy ol Intel national relationships, but We should invite tho disturbance of those cordial commercial relations which arc the H first requisite to the expansion of our H commerce abroad. l ll. leadlllrSS congress to grant a decreased duty oa H imports- brought to our shores in iH I American hotiums it seemed de- t H si i aide to find a way of applying a H . ingress clearlj intended and at th a H time avoid the embarrassment t H our tiade relationship aluo.nJ H ;o l.i;n mini ALU 'The recommendation of today is t H lassd wholly on this commendable in- H tent of congress. Tho proposed aid of the government to aid its merchant j ; marine is to have its chief source in IJ e duties collected on imports In- I stead of applying the discriminating 1 duty to tho specific cargo and thus en- ; couraglng the inbound shipment. I propose that we shall collect all Import I duties, without discrimination as be-j be-j twecn American and foreign bottoms land apply the heretofore proposed re-duction re-duction to create a fund for tho gov.- ei ninent's aid to our merchant marine. H I "By such a program we shall en- B1 , ..era;'. alone the earning of In- , I bound cargoes subject to our tariffs but we shall strengthen American j I ships In the earn ing of that greater Inbound tonnage on which no dutie arc levied and more important than j these, we shall equip our merchant. marine to serve our outbond com- IH 'merce, which Is the measure of our fH 'eminence In foreign trade. rTGURKS Ql OTKD "It is Interesting to note in connec- H Hon with t ie i proposed plan flj (Continued on Paye Ucacu.j i K TEXT OF HARDING S ADDRESS ON SHIP SUBSIDY FEDERAL AID URGED FOR GROWTH OF NATIONAL COMMERCE (I (Continued from ftsjsj Onf) I of discriminating tariffs on Imports I -arrled to our shore In American bot tom. thn( th. vain Of all dutiable import for :2 In all v mil wm $1.- 9l6.S6r.00Q. while the. cargoes admitted admit-ted frea of duty on which no discrimination discrim-ination wu poasibU, were valued at IS.116.t6t.000. The actual tonnage comparison I ven mora evident from the viewpoint WM measured In round number. aaaaaaaf' HP VY.i lr, I WLW half time was In non-dutiable rhlp- MM 'Continued trade must be roclpn H we do not buy. In the promotion of I MM W VI K ii in W I , -,, ept is i he export ii MM I MM H B ion Inatlng so full of ro- Lw I mm . . i. .-.f ..f commerce Ex- K 1 1 Hi I LsE 1 Ha H 4 HE ; W gn which a ommerce ha aaar aaan MH offnrtH to m g&BCH importance In commerce in carrying Bf fH n the high sea vv hi. r '.'I gaVtagaL. Jn tno 00r"T flags of the republlr. The Hx awJbl H '-H H though hrretofun- ban defeated all ef- HHH forts to employ the government aid SwL H BBBH our. while we h'lld aloof and the HBHj terms, subsidy and subvening B HH mad" rr.M-K 1' B Hm erica n nubile. Hut the nationwide BB has outlived BVsssbS' BBj to Br bsssbtJ RBBfJ found expression In movement t sH havo the KoTiim'n' BBHB terprlse In which Individual gt-nius I I leemlngl: had fnllei BaT JhBBj I tho world war put an end to all norm- BBfl I al activities before are were involved. "tlH ' Our shipyards w-ere turned to feverish jBBH and costly activities by tho call of the I allied powers for shipping; without UjHB . which they could iut hope to survive JjBB "Vmerlcan enei EBB a ff B -.ever dreamed ol doing foi BmJBB When we were later engaged we treb- BBBB led and quadrupled the output on our BBfli own account. Allied resources were BABBI eajjed upon to build to meet the Ce- MLMM t structlon by submarine warfare as BBJp ships were so essential that material' Wj j 'or 'hern v. c . Hp .mis and imm Then was i jj he call for shlpi and ihlpi and v, H 1L mora ahlpi and we enlarged old yards HS 9 and established w . : . E W Mm r ri lously, 1 we met a prt mil g MMwM need and performed a great service. ! 091TiY W i: I ni itl CTION MM "A people Indifferent to the vital W BB necessitv- of a inert hai I n trine to thi Bl national defense untrrudKingly expend - V m.A of flt-o limn.' U.. ...,! nf .w.r..,.,l I BOBBtrnctlon and Appropriated bil-llons bil-llons where millions had been dented before. We acquired, vaal t.nnuKe. Tail .some of It. much of it In Milted to the f peace service of expanded commerce. W ome of it. much of u mas be charged to the errors and extravagances of war M i time anxiety and haste. The war pro- Btv. I (tram and that Hk B k sponslbllit Br, n 1 1,000.0 tonnage, not H4 tuntlng the i enn- cM ttructlon, at to) ii outl j HbB ' proxlmateU three ind one-hall bll-HBgf bll-HBgf HMHB "We t i HHH of a frreat merchant marine, not all HHHB of It practical for use in the trans- BHB oceanic trade.., little or it was built HE9H tor tho speed which goes to outstund- HBHa Ing- service There was vast tonnage HKH for cargo service and the government EH In the exceptional call of commerce EH , which Immediately followed the war. BjHj j sought the establishment of shipping BflH lines; every direction calculated to EH i enhance our foreign trade and further HHJ cement our friendly relation?. r immfxsl; i,sr.s BH "The movfnwnt lacked in most HjqB I .ascM that Inherent essential to suc- KX 1 een found In Individual enterprises. HH 1 It was a government experiment. y where the lines were established In K. high hopea and little assurance, be- B9 I Ctrasa the public treasury was to bear HjSB tne burden There was the more sug-j ByM j gestlon of private enterprise, inas- HH J much as allocations and oharters were HEH'l mnde under which private manage-! BBI I ment was to shnre In profits and prl- HE9B 1 fate Interests were paid to make The K29 I aiperlmenl though th government Bfl was BB '. 'he detailed recital. Tho misadventure Hpk o unfavorable that when the , BBsVal JqBHJ sponslbllity, tho losses were approzl QHHf mately $16,000,000 ti month and to the I WEMW ' of failure was adde.i the hunulla- I B8B '' M, 1 1- lib. II. I :n i-relfm .,.rta nHHJ "In plte of all the latter losat In EE: peril,.-,.; however li ft Xj HHC art can tonnago was mainly responsible! HjHH our ability to share in the good 1 HH fortunes of world leadership the two, JH ears immediately following the war HBBfl all probability the losses we have' pj.pjjj --v.4.,..u iii .,ur snipping activities BH were fully compensated to the Am- BHH erlcan people In the saving .,f ocean freights In that period. sHI! I - iai , i IjHBH "Today we are possessed of vast !BBfl tonnage, large and very costlv exper- IIBBH lenee nnd the conviction of failure It HH ' fair to say that a mistaken polio IIHBHj wa8 tnado more difficult bv the unpar- j f Mm , JH 'i slump r' h ppii . w . i , m BB HBBH .Jnc year so recently closed. Tt was i M HT which folio? greai war &nd there H were heavy looses In operations whleh 5BBH ha1 to be met by lonjj established and MJ heretofore successful shipping lines Bj Ships built at top war rocts slumped HBH H Vrcv below the normal levels of i mm HH "Hut we naTe ur ships, the serond largest tonnago In the world and we MJ have the aspiration aye, let me say BH fbo ambition to establish n merchant marine commengurte with our com- I MM imerclal Impoi Our problem HBH ,9 10 turn the ship and our experience and aspirations into the effective es- tfffl 'i Mshn.ent of an oeenn going ship HBBH J'lnif "crvlco without which there run B1H an--- uf ..,f,r;l mm merclal eminence, without which any HB Tutur confllcl at Mnd us jEflBBj nK-nln widely extravngnnt when the HBBBH proper neoesaary fiBfl 1 ' ni' r" " he our guaranty of defense in I UM THaa that peace la disturbed. HH "Out of etory of the making ..f grest (merchant marines and out of our own experience we ought to find the prae-tlcal prae-tlcal ".r.lutlr.n Happily we are leim prortnt Lai thaB we f.nre were. Nobody pretends any longer that shipping Is a matter of concern only to the ports Involved. Commerce on the sas Is o,ulte as vital to the great Interior as It Is to our coast territory', east, south or west. Shipping is no more M seetlonnl interest than is agriculture or manufacture. No one of them can 1 be prosperous alone. W have had a new manifestation of this vil.n In the project of the great middle west for the proposed ire;,i l.nk.'-Pt. Uwrence waterwav by wbicta it is intended to connect the tJreat Lakes p.-rts with the marts oi the srarld fhere is far seeing vision vis-ion in th" propoaal, nr.d this great and commendable enterprise, deserving four faTOrable eonslderation I In-aaparable In-aaparable frotn a great merchant marine. ma-rine. K 1 ni RJ I 1 I hat then. U our r.robb :,. ! I bring to you the suggestions which ii.iv.- resulted (rum a comprehensive I iud. which are recommended by me t.. every tnembei 01 the fnlted States i hipping board it is a program of' direct and Indirect aid to shipping to be conducted by private enterprise. It Is proposed to apply generally the ben-efitS ben-efitS which It was designed to derl'0 ironi discriminating duties t.. all -hips engaged in foreign commote. . nrith BU ii Ititiltatlon ol renunciation us will ballengc even charge "f promoting special intere.st.s at public cost. "In lieu of discriminating duties on import' brought to us In American i bottonif. it is proposed to take ten per , cent Ol all duties collected Qn imports! brought to u. In American or foreign bottoms, and create therefrom a merit mer-it marine fund. To this fund shall bo added the tonnage charges. tSUKOS md ties Imposed on vessels entering these ports r continental United .States, also su. i, sums as are payable to American vessels) bj the postofflce department :or the transportation by .water ..t torcgn mails, parcel posts I excepted, IL M i i COMPICNSA1 ION ' ' ut of this fund shall bo paid the direct aid In the development and in.'liii. iiaii ..I .in AmvMuuii merchant luiai'lne, 'in.- compensation shall be tMsed "ii one-haii ol one cent lor each gross ton ot any vessel, regardless Of speed, for Bach li" miles traveled. w h n tho speed is 18 Knots or more, ! but less than 14. tWO-tenthl of a cent Ion each grots ton A;:aii oe added; tor ! n knots, mree-tenths oi u cont, ior io knots, four-tenths oc u ceiu; tor lt I Ktiots. five-tenths of a cent; tor 17 , Knots, seven-tenths; ior is kujis. nlne- j tenths of a cent shall be auded io the i basic rate. Voi knots the maxl- mum la rcucneu at S.4 oonte ior each I gross ton per 100 miles travoied i UUM M UL8 l HI. I 'J will not attempt tho details of requirements or llmiiationb save to say thut all vessels thus remunerated shall carry the United States malls except ex-cept parcel pot, free Of cost, and that all such remuneration must end when-ever when-ever the owner ot uny vessel or vessels I shall hav.- derived a net uj.erutlng In- I conic In excess of lu per cent per annum an-num upon his actual Investment and i thereafter the owner shall pay 50 per cent of such excess earnings to tho mi reliant marine fund, until tho full mount of subsidy previously recelv- j sd Is returned to its source. In other I a ords, it is proposed to encourage tho i shipping in foreign trade until the en-terpri.se en-terpri.se may earn 10 per cent on ac-il ac-il 1 1 - ment, whereupon the direct aid extended is to cease and the i ni.woinl ii ill ', n, ... 1 la tn I.,. Minnas of a division with the .Tovernment o profits of any special Interest at pub lie expense, puts an end to the gov ernment assumption of all losses anc leaves to private enterprise the pros I pectlve profits of successful manage , ment. COSTS ESTIMATED "The cost of such a program proh (ably will loach 15,000,OQO this year and- estimated on the lai-.cst possibil lties r the present fleet. With largei relrnburseinent to high speed vessels and the enlargement of the men nan marine to a capacity comparable wltl our commerce, the total outlay maj reach the limits of 130,000,000, but I is confidently believed that the scab may In clue time thereafter be turned until the larger reimbursements an restored to the treasury. "Even If we accept the extreme pos siblllty that we shall expend tht maximum and no return will ever i . made, which is to confess our Inability to establish an American merchant marine It would be vastly preferable to the present unfortunate situation, j with our dependence on our competitors competi-tors for the delivery of our products Moreover, the cost of the entire year would be little more than the deficit heretofore encountered in two months, during the experiment of the govern-ment govern-ment sponsoring the lines and - mge ot their operation. RESTORES Dill I i i i ' The proposed plan will supersede all postal subventions, postal com-penaatlong, com-penaatlong, and extra conipensions, excepting ex-cepting parcel post freights, all of which combined are :ast growing to approximately five millions annually It will ultimately take tho government out of a business w hich hus been and Is now. excessively oostly nnd wasteful waste-ful und involving a loss In excess of the highest subsidy proposed It will bring to shipping again that Individual Initiative Which is the very soul of successful suc-cessful enterprise it BOUld enable tho government to liquidate its vast fleet to the highest advantage. Making of a successful merchant murine, which must face the stiffesl possible competition by tin- fleets oi the maritime, nations, requires something some-thing more than the direct aid to which 1 havo alluded. The direct aid proposed, even though u ultimately run ;., i.imi, i. anr,uu!lv lp .i.suifl- clent alone to offset the advantages of : competing; fleets. There are more I than wage costs, and working conditions condi-tions and the higher costs rationing. ration-ing. Which no considerable American sentiment will consent to have lowered low-ered to competing standards. Aid OSTS HIGH R The men who sail the seaa under our flag musi be permitted to stand erect In the fulness of American opportunity. op-portunity. There is the higher cost or construction the larger Investment the higher cost of insurance outlay even though the rate is the same I There are higher Interest charges. njr : problems in shipping are very much the same as are those of our Indus-irle Indus-irle aahore. and w e should be as zealous zeal-ous jn promoting the one as wo arc In protecting tht other. Wo may and must aid indirectly as well as directly. direct-ly. "We need a favoring plrlt. an awakened American pride, and an avowed determination that we shall j become. In the main, the carriers ot j our own commerce, In spite of all competition and all discouragement. With direct and Indirect aid, I bring to you a deflnito program. Those who oppose It ought. In all falrnes. to proposo an acceptable alternative. There .-an be no dispute about the end al which we are aiming. "Of the Indirect aids there are many 1 practically all without draft upon th j public treasury, and yet. all highly J - helpful in promoting American shlp-I shlp-I ping. R Ml t-OPl RATH . It is a simple thing seemingly it ought not require the action of eon-j eon-j gre but American official travelling travel-ling on government missions at gov. i n I ment expense ought to travel on American ships. assuming they a.re able to afford suitable accommodations. accommoda-tions. If they do not 'afford the re-nulr re-nulr I accommodations on the main routes of the world travel, tb. ajpree-, ajpree-, ment that we hould upbuild Is Strongly Strong-ly emphasised, i chink we should discontinue dis-continue no far as practical, the trans-j trans-j port services In the army and navy, land make our merchant ami pass.-ut,-or ships the agents of service In peace as wsil as war. w. should malts in Mjrance ..vuilu hie it no .;ri .l'. r cost than Is afforded the ships under competition com-petition flags, and we shall inaks Sf festive the spirit of paction SI of th-ljone. th-ljone. act of i!-o. providing for preferential pref-erential rail and steamship rates on inrough shipments em American vessels ves-sels into co-ope ratios with Amerti ail steamship lines. H Is not in accord with either Motility or sound business practice to have our railways furthering further-ing the Interests oi forelzn shipping lines, w hen I lie concord American activities makes for common American Ameri-can pood fortune. "Contemplating the eompetnlon to be met. mere; ought to bo an amend-meQl amend-meQl to the- Interstate commerce act which will permit railway systems to own and operats ateomshlp lines engaged en-gaged In other than coastwise trade.' There is measureless advantages In longer shipments where rail and water transportation are Co-ordinated, not , alone- In the service but In the "diclta-tlon "diclta-tlon of cargoes. |