The evening world. Newspaper, February 21, 1922, Page 4

CA SUBSIDY BILL IS LOOKED ON AS A LASKER SCHEME 10 AID SHIP SALES o No Other Member of Shipping Board Has Uttered a Peep, Although Three of Them Are Members of Democratic Party. Misible Assets Now Left Dwin- dle to $113,401,612, Say Members of Congress Who Have Made a Close Study of the Vexed Question. By Martin Green, [Btaff Correspondent of The Evening World.) WASHINGTON, Feb. 21.—In yes- ferday's article the net assets of the Bhipping Board and Emergency Fleet Corporation—which latter is now the @bief functioning body, the Shipping Board exercising only supervisory powers—were set forth, from the etatements of the Shipping Board and by members of Congress who have made a study of the subject, at $187,- 401,612. That is all, on @ basis of book value, the American people have fm sight to-day to represent an in- vestment of almost $4,000,000,000. But even that is not @ true state- ment of value. On Jan. 4 lest Chuir- man A. D. Lasker, testifying before & subcommittee of the Approptiations Committee of the House, revoaled that the sum of approximately $99,000,000 im the item ‘Accounts and notes re- celvable for ships sales—secured by title or mortgage” is carried at its face value. This represents mortgages given by persons or corporations to secure pay- ment for ships purchased from former Shipping Boards. These mortgage: were executed on ships for which the purchasers obligated themselves to| | pay at the average rate of $177 u dead weight ton. Mr, Lasker sald that at current ship prices the ships covered by the moftgages ere rated as worth not) over $30 a toen—if they could be sold. | The makers of the mortgages have re-| fused t, settle on the ground that if! they haye to buy thelr ships at $177 @ tea they cannot compete with ships carrying an overhead of only $30 a ton. They were the first to purchase ships, and many of them did not pay anything down. | The Shipping Board has put the! matter of trying to collect the fuil| value of the mortgages up to Con-| gress... Mr. Lasker expressed small hope that the purchasers would be willing or able to pay. / The truth about this item appears to be that the Shipping Board holds mortgages of a face value of $99,- 000,000 which were made by people ‘who will prove to be collection proof if an attempt is made to enforce the contracts, As to the ships covered by the mortgages Mr. Lasker said: “If those were sold at forced sale to-day we might realize from §22,- 000,000 to $25,000,000 though I doubt at” So this asset is actually worth enly $25,000,000, the outside problematical value of the ships covered by the ADVERTISING tracted from $187,401,613 leaves $113,- 401.612 as the approximate value of it the $4,000,000,000 investment as ‘stands. Now comes the Shipping Board with a plan to tax the American peo- ple for an indefinite time $35,000,000 @ year in the shape of a subsidy on ships which in so far as the return bears any relation to reducing the cost of the merchant marine will have actually been given away. To put it another way the Shipping Board pos- sesses about 1,450 steel ships and about half of these ships are alleged to be, by the Shipping Board and their builders, as serviceable and eco- nomical ships as wore ever set afloat. But, with the way money has been squandered, and with, the assets con- tinually shrinking, these 1,450 shipe are rapidly approaching a stage when they will not be worth to the Amert- can people who sunk close to $4,000,- 000,000 im them as much as a dollar apiece. Therefore, in order to get rid, Af possible, of a lability of $40,000,000 Seyear, the cost of maintaining the ships in idleness, it is proposed to give them away—for that is what the subsidy propositiqn amounts to. The subsidy plan as presented by Chairman Lasker to President Har. ding carries an estimate of cost of from $30,000,000 to $35,000,000 a year. As has been shown, the outside sum that can bo realized for the freight ohips is $265,000,000, and this only if the board is able to sell all of them. The subsidy in seven years at $35,- 000,000 will amoumt to $245,000,00 Mr. Lasker eald on Jan. 4 to the House sub committee: “You cannot sell American ships at all right now. You could not sel} the ships to-day, Since I came in (June 18, 1921) we have sold only one ship of any consequence, a big steel ship for $375,000. We have sold a whole lot of little ones that amount to nothing, We have practically sold another ship for $1,000,000, but that deal has not been closed." However, the deal was closed sub- | Admiral Line and was totully’ de- stroyed by fire while on her way fiom |New York to Chester, Pa, to be | reconditioned. It is understood here {9 Washington |that there Is a mixup over the Great | Northern as to whether possession actually passed to the Admiral Lino and whether the Admiral Line or the | Shipping Board is responsible for the fire loss. It In reported in legislative circlos here that the Admiral Line will claim that it was not im legal posses- sion of tho ship because a Shipping Board crew was in charge and the crew waa undoubtedly inadequate. The Great Northern was all ablaze amidships before the fire was discov- ered Chairman Lasker was #0 positive on Jan. 4 that it was impossible to sell ships that he repeated the statement several times. Nevertheless, the Ship- | ping Board Emergency Fleet Corpora- tion announces at this time, a month and a half after Mr. Lasker said that ships could not be sold, that it will receive to March 14 bids on all the ships. But the sale of tho ships is con- tingent on the passage by Congress of the subsidy bill. And what the rubsidy really {s can be summarized in a theoretical notice to the interests which are figuring on getting the fleet at rock bottom prices to this effect: “If the Congress passes @ subsily bill purchasers of ships will get their purchase money back in eeven years— elght years at the outside. The pay- ments will be exteaded over long periods, which means that Uncle Sam will finance your purc! and your ships will have cost you nothing.’* Under such conditions it is possible that the Emergency Fleet Corpora- tion may be able to veil @ Jot of the first class ships. But the subsidy bill will not slide through Congress on greased ways. Not much open atten- tion has been paid to ft because the embers of the House and Senate ure pretty well steamed up over the bonus dill, which Is #0 closely enmeshed in Practical politics as to becloud every other pending issue. In connection with the subsidy plon it ts significant that no memLer of the Shipping Board except Chairman Lasker has uttered a peep about it. Politicians say that it is a Lasker measure, accepted by the White House on the ground that Mr. Laser as a skilled advertising man should be allowed a free hand in a campaign to sell the ships, evon though the campaign involve a subsidy sufficient to eat up the purchasa price, As provided by law, three of the aeven members of the Shipping Bourd are Democrats. They are Adm'ral W. SS, Benson, formerly Chairman: for- mer Senator George E. Chamberlain eequent to the date of Mr. Lasker's testimony. The ship was the Great | Northern, and she was sold to the mortgages. Therefore the assets whould be shrunk by the differen between $99,000,000 and or $74,000,000, 000.000, milk three times a day, enriches the young blood, feeds the tissucs and makes baby strong, lively, rosy, happy. The Food Tonic ” The DIET during & after INFLUENZA Horlicks ORIGINAL Digestible Instantly prepared =no cooking . Used successfully over 14 century sarGet H ae Horlick’s 067 Avoid Imitations& Substitutes Apartment Style Genuine Victrola OUTFIT No. 80. Beautiful Upright model in Mahogany, Walnut or Oak, and your choice of ten 10-inch double-faced 75c records. PIANOS VICTROLAS ——— Add: and finish, including Period desi purchases made on Washington's Birthday. of Oregon and Frederick Thompson of Alabama. A ship subsidy is contrary to Dem- Genuine Victrola Genuine Victrolas installed in PERIOD CONSOLES Period Consoles of beautiful proportions that meet with your instant admiration —combined with the Victrola—the most versatile musical instrument. WURLITZER—120 West 42d St. Without obligation on my part, King) ditional information regard/ng con. en Victrolas advertised Name rear w ocratic policy. In the natural course of events the Democra:tc members of the Board would présent a minority report on the subsidy plan. No such a report has been submitted and, so far as is known, no such a report bas been prepared. In matters of major policy relating to the merchant marine the Shipping Board up to this time has been recog- nized as the tawful functionary. The fact that the minority members of the Shipping Board have not been heard from on the subsidy plan, and the plan is generally credited to the Emergency Fleet Corporation which is dominated by Chairman Lasker, indi- cates that the matter has been put up to the Board only as a routine subject to be approved or disapproved as com- ing from the Emergency Fleet Corpo- ration. ‘ Not all shipowners or prospective shipowners are in favor of the sub- sidy. There is somewhere in the Shipping Board, but not es a record that has been considered by the board, the outline of a plan to let out the shipe—or as many of them as can be used in the present deflated condi- tion of ocean shipping—for their up- keep to men or corporations who would agree to operate them on the co-operative plan. This would take hundreds of ships out of expensive storage, put them on the seas to be eventually paid for out of earnings. This plan would give every man in the crew an interest in the ehip to be paid for out of his wages month ‘oy month. It has been tried and in every case of which there are records available it has been successful. With captains, mates and engineers and firemen and seamen interested in the profits of their ship it has been established that amazing economies Cooler Weather ! Heartier to give everything a satisfying flavor. At Grocers and Delicatessen Stores E. Pritchard, 327Spring St,, N. Y. Open Until 10 P. M. Washington’s Birthday This is an opportunity to purchase a From the most complete assortment ever displayed in any one store. Every conceivable style is.. The most favorable terms of payment will be arranged on Full Cabinet Size Victrola OUTFIT No. 160 Of choice Mahogany, Walnut or Oak, and your choice of: 2—10” Red Seal Records $2.50 112” « « “ 1.75 0” Blue Seal * 1,00 In Mahogany.. $95.00 brio” Blacks 2.25 In Walnut - $100.00 Chinese Lacquer........... $150.00 $157.50 Terms $ as Low 5 DOWN as Open Evenings Until 10 o’Clock The Rudolph Wurlitzer Co. 120 West 42d Street Between Broadway and Sixth Ave. If Unable to Call Personally, Mali This Coupon. Phone Bryant 8140 MUSICAL INSTRUMENTS sond me ad+ At terms and a ne THF EVENING WORLD, TUESDAY, FEBRUARY 21, 1927. LL SUBSIDY BILL SCHEME TO AID SHIP SALE result. One of the greatest factora in successful ship operation te rapid- ity of movement—that ts quick load- ing and unloading and wide areas of operations without repairs. Repairs are a heavy item of ex- pense because seamen having only a wage interest in their veesel will neg- lect it. But seamen having an owner- ship interest would keep the ship neat and sound all the time, Co-operative operation of ships has establisued that @ very great saving can be Made on fucl—as high as from 20 to 26 per cent. per voyage. The item of food is one of the most waste- ful on an American ship. Co-opera- tive operation has reduced the cost of that item 331-3 per cent. “T have operated ships on @ basis of 49 per cent. ownership in the crew and 51 per cent. ownership in my firm,” said an experienced shipping their cargoes aboard and hustled to set to sea. “During the shipping boom we trained many thousands of seamen who are out of jobs to-day or, if they have jobs, would be willing to go back to sea if they could get ships. I'll venture to say that these men gener. ally would gladly welcome a chance to acquire ownership in ships and pay for it out of their wages and profits. “We will never have a merchant marine in this country to amount to anything until the people of the coun- try know shipping and can be shown that there is money in shipping. Then they will buy shares in ship owning and operating companies just as they do in England and France and every other maritime country, and as they are starting to do again in Germany. “To get the people interested in our merchant marine sufficiently to impel man to me last night. "I adopted this plan at a time when the outlook was getting very dark. “The men were glad to enter into the echeme, Before long my opera- tions costs were reduced 20 per cent., the ships were in detter shape than ever before and we were making almost miraculous time in voyages because no time was lost in port. Knowing that mileage meant money the captains and crew, hustled to get them to invest money we must make out @ record of achievement behind our American ships. Even with the La Follette law in force we can, by the exercise of common sense methods compete with any shipping In the world, “A subsidy would lead to waste, If we can’t make ocean shipping pay without holding our hats out to the Government we ought not to attempt to go into the shipping business.’ ton’s ctions Special Extraordinary For Tuesday and Wednesday, Feb. 21-22 Mother’s Old Home Package Just the kinds sho grad to make for the little amily al ome and enjoyed so muc! all. iamces ae AAC Specials for Tuesday, February 21st Glace Cherry American Filled Cream Kisses Confections The name gives away the Distinctly American. secret. They are the utmost Our sarulen 69c goods. in oe BOUND 24¢ POUND 59c Other offerings which convey the sentiments of this great patriotic holiday High Grade Milk Chocolate Assorted Chocolates Tree Choppers or Bon Bons and Chocolates | | Twelve cunning little hatchets in richly decorated, beauti- moul from our famous fully lithographed Briarcliff Milk Choco- patriotic boxes. c late, in decorated de POUND BOX container. PACKAGE Briarcliff Milk Chocolate Mara- schino Cherries The Washington Cherry Story sweetly told. POUN! > 69c Milk Chocolate Patriotic Embiem Anovelty made from our fam- * ous Briarcliff Milk Chocolate, typifying the spirit 19c of real patriotism EACH Ernest ! 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