DIRECT SUBSIDY

Taranaki Daily News, 17 April 1935, Page 5

DIRECT SUBSIDY

UNITED STATES SHIPS AIDING MERCHANT MARINE MAIL CONTRACTS TO END ■z ' " GOVERNMENT’S NEW BILL INTRODUCTION TO HOUSE Sy Telegraph—Press Assn.—Copyright Rec. 7 p.m. Washington, April 15. A Bill sponsored by the Administration to grant direct subsidies to the American merchant marine to replace the aid given through mail contracts was introduced into Congress to-day. The Bill proposes to, grant three types of subsidy—construction, operating, and trade promotion. Under the first two named the cost differential between American and foreign construction and (operating costs would be supplied by the Government Under the third the Government would pay losses on newly established lines. The Bill provides for the establishment of a United States maritime authority which will control the merchant marine, investigate requests for aid, and determine the subsidies to be paid. No specific appropriations are request- ' ed, but it is pointed out that the Government expects to reduce the mail carriage expenditure from £6,000,000 a year under the contract system to £600,000 a year. It is expected the difference will be available for annual subsidies, together with about £12,060,000 remaining of the old Shipping Board Funds.