WASTE BY GOVERNMENT

Hawera Star, Volume LIII, 29 September 1933, Page 5

WASTE BY GOVERNMENT

ALLEGATIONS IN AMERICA SUBSIDIES ON SHIPPING. sale of Feder al vessels. IMPROPER CONDUCT CHARGED. *By Telegrapn—Press Association.) WASHINGTON, Sept. 27. A 'Senate committee conducting a general investigation into the alleged extravagance of the Government in granting shipping subsidies, and improper conduct by officials handling these affairs, revealed that vessels belonging to the Federal Shipping Board were sold to private hues at considerably less than the board expended for rep ai rs. It was stated that 3 8 ships were sold ‘o the Export Steamship Corporation for £214,200 after the board spent £360,000 repairing them. The subsidies paid to the corporation for carrying mails in the years 1931, 1932 and 1933 amounted to considerably, more than the line paid for the 18 ships. During 1929 eleven companies.’ ships carried but' a single pound of mail at a cost of £23,067, and from July, 1930, to June, 1931, carried 81b. of mail at a cost of £25,000 a pound. During 192828 they carried 31b. at the rate of £48,600 a pound. It is contended, in .shipping circles that the figures do not give a true picture, and it is explained that payment for mails carried is merely a legel pretext to permit direct subsidies to the merchant marine.