NEW PLAN FO5R SUBSIDIES

Press, Volume LXXII, Issue 21775, 6 May 1936, Page 11

NEW PLAN FOSR SUBSIDIES

AMERICAN MERCHANT MARINE

HELP IN BUILDING AND

OPERATING

(UNITED PEB33 ASSOCIATION—COPrftIGHT.)

(Received May 6, 12.30 a.m.)

WASHINGTON, May 4,

Senator Guffey introduced a compromise ship subsidy bill, intended to break the existing deadlock which threatens to prevent legislative action this session.

The proposal is offered as a substitute for the bill passed by the House last summer. It would set up a maritime commission to supervise the American merchant marine, and would terminate the existing mail contracts on March 31, 1937. By that time plans would be ready whereby Government aid would be extending to shipping companies in the form of differential subsidies enabling them to build new vessels in American yards, and operating subsidies, enabling them to operate in foreign trade in competition with foreign lines. The subsidy for construction is limited to 33 1-3 per cent, of the construction cost, except that the Government could provide additional funds for national defence features, which the commission might order to be incorporated in any vessel. The operating subsidy must not exceed 40 per cent, of the operating expenses of any voyage, except a further 10 per cent, which might be granted to compensate for the effects of a subsidy to foreign competition by a foreign Government.