WORLD SHIPPING

Hokitika Guardian, 29 September 1933, Page 5

WORLD SHIPPING

TT.S. SUBSIDIES ALLEGED EXTRAVAGANCE .Ur'ted Press Association—By Electro Telegraph—Copyright.) WASHINGTON, September 28. The United States Senate- has a committee conducting a general investigation into the alleged extravagance j of the Government in granting sliipi ping subsidies, and- also as to alleged , improper conduct by the officials handling these affairs. The committee has revealed t- hat vessels belonging to the Federal 'Shipping Board have been sold to private linci? at considerably less than that the hoard expended for the repairs. It was stated that eighteen ships had been sold to the Export Steamship Coy., for 1071 thousand dollars, after the Shipping Board had ■ spent 1825 thousand dollars in repairing them. It was stated that the subsidies money paid to the Export Steamship Corporation for the carrying of mails during the years 1931, 1932 and 1933 amounted to considerably more than what the line paid for the eighteen ships. It was stated that in the year 1929 eleven of this Company’s fillips carried but single pound mall at a cost of 115,335 dollars, and from July 1930 to June 1931 the ships carried only eight pounds of mail nt a cost of 125 thousand dollars per pound. During the period 1928 and 1928 the ships carried three pounds of mail at the rate of 243 thousand dollars per pound. Tt was contended in shipping circles that these figures did not give a true picture, and it was explained that the payment for mails carried is merely a legal pretext to permit of direct subsidies to the American merchant mar-