PRODUCE & MARKET REPORTS FROM DAY TO DAY

Evening Post, Volume CXVIII, Issue 51, 29 August 1934, Page 12

PRODUCE & MARKET REPORTS FROM DAY TO DAY

SUBSIDISED SHIPPING

UNITED STATES POLICY

WHAT IT COSTS

"Evening Post," August 29.

• It was to be inferred from a Washington Press dispatch dated August 23 and published in "The Post" lost evening that the United States Administration has no intention of discontinuing or reducing Government subsidies to shipping under the American flag. Further subsidies, it has been reported, were opposed by Mr. H, A. Wallace, United States Secretary for Agriculture, on the ground that "any further Government encouragement of the shipping industry by subsidies'or similar measures would tend to divert the energies of our people in some degree into shipping as compared with other industries." The cost of those subsidies in 1933, according to the "New York Times," amounted to 26,000,000 dollars. A Washington dispatch to that journal, dated July 25, stated that a step by the Government to bring about radical reductions in ocean, also in foreign air-mail contracts, had been taken that day when the Acting Post-master-General, Mr. Howes, notified the thirty-two ocean-mail And four foreign airmail, contractors to appear at a hearing at the Post Office Department on October 1. "to show cause why their contracts should not be modified or cancelled." The Senate Committee which investigated the air-mail contracts touched little upon I he alleged excessive payments under ocean and foreign air-mail contracts. As a result, Congress, in.the Independent Office Actyauthorised the Post Office Department to'-hold" hearings, and rescind or modify such contracts if it were shown that ex; cessive contracts existed. According to postal officials, the 'amount's now paid can be reduced greatly without loss of efficiency in the mails. ' : There are 44 ocean-mail routes held by Ihe 32' contractors, and nine foreign airmail routes held by the four contractors. : Last year the ocean-mail service cost %,054,650 dollars. Had it been carried on it- weight or poundage basis postal officiais estimate the cost would have been about ".OOb.QOO dollars.' The difference, they soy, represents a virtual subsidy to the steamship companies. COSTLY MAIL CARRIAGE. According to figures prepared by the Post Office Department, one steamship company received 363,295 dollars for carrying mail that would have coat ouly 20.02 dollars on a weight basis. Another oceanmail contract for £347,942, under the weight system would have cost 24 dollars. One of the largest ocean-mail contracts is held by the United States Lines, operated by the International Mercantile Marine, of which Colonel Hermit Roosevelt is the vice-president and Vinccut Astor a director. Their contracts for the Hamburg and London mail route amount to more than "7,000,000 dollars. The largest contract is hold by the Ripley Steamship Company, more than 30,000,000 dollars. , -.. Last year the Post Office Department expended 6,948,188 dollars on foreign airmail contracts, nearly all of which are held liy the Pan-American Airways, serving South America. The ocean-mail contracts to be investigated, the contracting companies, their trades,' and the amounts of their contracts | include the following:— . | ■ , ' Uoliars. I Miinson—New York-Buenos Aires .. 33,45 C,522 j Kxport, Steamship—N. York-Medltcr-vanean-Black Sea 15.270,."70 Americari-S." African—-New YorkCape. Town 2.570,021 fira'c'e—New York-Valparaiso 12,011.102 l:.nlted-States—X. York-Hamburg .. .17.030.G10 Jtonserelt S.S. Co.—Baltimore-Ham-burg '..;:. 12,450,1.12 Vnltfd States—New York-J-onclon 10,030,134 American Diamond —X. YorK-Itotter-<lam-Aritwerp 12.000.550 American W: African—New York- . West Africa 3,232,823 Itlpley S.S. Co.—X. Orleans-North-ern Europe and Transpacific .. i.0,i10,000 Waterman S.S. Co.—Mobile-Xortli-eril Europe • 0,141,551 S. Atlantic S.S. Co.—Savannah- i _ • Liverpool-Bremen o.uld.jsu Dollar S.S. Lines—San I'ranciscoJlanlla .• J6,3ao,TU Pollar S.S. Lines—San Francisco- , Colombo ■• -H-'IOS.uSV Oceanic S.S. Co.—San Francisco- - Sydney : ;• >I.' a».to" .0. and O. Co.—Lns Angeles-Am-li- •_ . . t l,iSj,JJ> O. ■ and 6.'' Co.-L'oV ' Angeles-Mel- ' bourne _,iui,u»The ocean-mail contract price in each instance as above represents pay ior ;> ten-year period. . , , . -Foreign air-mall contracts includes lino* between New York. Chicago, and Seattle, and the-West Indies. South America, ana Canada. . .. With regard to shippiug contracts it .s provided that after 60 days' notice, after a hearing, the President may "modify or cancel any such contracts." Ihe order provides further that "whenever the President shall modify'or cancel any such contract he shall determine just compensation therefor; and if the amount thereof, so determined by the President, is unsatisfactory.' to .the firm or corporation entitled to receive the same, such individual, farm, or corporation shall be cntitldd to receive such portion thereof as the President shall determine, and shall be entitled to sue the United States to recover such further sum as added to said portion so'received will' make up such amount as will be just compensation therefor in the manner provided in the United States Code.'; ;