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BIG SAVING.

America Rearranges Shipping Subsidy Scheme. SIX-MONTH EXPERIMENT. WASHINGTON. July 1. A new shipping subsidy scheme is announced under which 1.11 ships flying the American flap will Im-jHm operations to-day for a six months' experimental Jieriod. By the terms of the agreements the American <;overnnient will pay to the owners the difference between operating costs of foreign line* on the one hand and American on the other. Old contract- under which the Government undertook to pav 73.<KKUMMl dollars have been compromised for payments of less than 7.V1/MHI dollars. Settlements have l>een reached with 23 companies holdhi" 7.1 per cent of the ocean mail contracts. The cost of the subsidies for the first six months will W 4.74.">,000 dollars, or approximately five-eighths of what the mail contracts under the old sv-tein would have been over a similar period. The Mib*idies niii*t be repaid to the Government out of all the companies' profits exceeding 10 |>er cent of the ! invested capital.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/AS19370702.2.102

Bibliographic details

Auckland Star, Volume LXVIII, Issue 155, 2 July 1937, Page 7

Word Count
160

BIG SAVING. Auckland Star, Volume LXVIII, Issue 155, 2 July 1937, Page 7

BIG SAVING. Auckland Star, Volume LXVIII, Issue 155, 2 July 1937, Page 7