SHIPPING SUBSIDIES

Poverty Bay Herald, Volume LX, Issue 18206, 29 September 1933, Page 7

SHIPPING SUBSIDIES

AN AMERICAN INQUIRY AMAZING REVELATIONS WASHINGTON, Sept. 28. The Senate committee conducting a general investigation into alleged extravagance by the Government in granting shipping, subsidies and improper conduct by officials in handling these affairs, revealed that vessels belonging to the Federal Shipping Board had been sold to private lines at considerably less than the board had expended for repairs. It was stated that 18 ships had been sold to the Export Steamship Corporation for 1,071,000 dollars after the board had spent 1,825,000 dollars repairing them. Subsidies money paid to the Export Corporation for carrying mails for the years 1931, 1932 and 1933 had amounted to considerably more than the line had paid for the 18 ships. During 1929, 11 of the company’s ships had carried hut a single pound of mail at a cost of 115,355 dollars, and, from July, 1930, to June, 1931, had carried eight pounds at a cost of 125,000 dollars per pound. During 1928-29, they had carried three pounds at a rate of 243,000 dollars per pound. It was contended in shipping circles that the figures did not give a true picture, and explained that payment for mails carried is merely a legal pretext to permit direct subsidies to the merchant marine