SHIP SUBSIDY

Hokitika Guardian, 6 May 1936, Page 5

SHIP SUBSIDY

U.S.A. PROPOSALS

EFFORT TO STOP DEADLOCK.

(United Press Association—By Electric Telegraph—Copyright)'”

(Receved this day at 9.30 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 offered as a substitute for the Bill passed by the House last summer, would set up a maritime commission to supervise the American merchant marine, and terminate existing mail contracts on March 31, 1937. By that time the plans would lie ready, whereby the Government aid would be extended 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. Subsidy for construction is limited to 33 1-3 per cent of tlie construction cost extent that the Government could provide additional funds for .national defence,- and features which the commission might order to be incorporated in any vessel. The operating -subsidy must not ex-, ceed forty per c ent of the operating expenses of any voyage, except that a further ten per cent- is,, grantable to compensate for the effects of a subsidy tc foreign competition by a foreign government.