U.S. MERCANTILE MARINE.

Press, Volume LVIII, Issue 17394, 3 March 1922, Page 7

U.S. MERCANTILE MARINE.

THE SUBSIDY SCHEME. PRESIDENT HARDING'S PROPOSALS. (By Cable—Press Association—Copyri?h*-) (Australian and N.Z. Cablo Association.) WASHINGTON. February 28. President Harding, introducing the shipping subsidy programme in Congross, declared that a great American merchant marine was necessarv as the second line of the nation's naval defence. He asked for approval of the recommendations for a direct subsidy amounting to 30.000.000 dollars a year by rnisinn: and diverting 10 per cent. of all Customs receipts, and also all tonnage taxes collected on both foreign and American ships, which would be added to the merchant marine fund. The tonnage tax would be doubled. The recommendations for direct aid include:—

(1; That one-half of all profits over 10 per cent. be added to the shipping fund.

(2) That a 125.000,000 dollars construction fund be created, to be loaned at 2 per cent.

(3) That deductions be made in income taxes for shippers equal to 5 per cent, of the freight paid on goods imported in American ships. (4.) That all income taxes be waived when the amount of such taxes is applied to the cost of new ships. (5) That 50 per cent, of all immigrants must be carried in American ships. (6) That a merchant marine naval reserve be created, with a maximum of 6000 officers and 30,000 men, employed on merchant .ships, who will receive 8,000,000 dollars a year in pay from the Navy Department. (7) That all Government freight »nd passenger traffic be in American ships. (8) That the coastwise trading laws to be extended to the Phillipines.

(9) That provision be made for preferential export and import railroad rates applying to shipments carried in American vessels. OCEANIC COMPACT'S CIiAIM. /,■ MELBOURNE, March 2. It is understood that the Ocea«!ic Steamship Company is olaiming a higher subsidy from the United States Government. It is contemplating increasing its fleet if satisfactory arrangements are made.