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Marine Review FOUNDED 1878 SHIP OPERATION : Volume 64 Vigorous Action is Needed for Merchant Marine HE country is fortunate in having a Presi- Ton who is sea-minded. He fully realizes that without adequate sea power both in the navy and in the merchant marine this country cannot remain a first class power or fulfill its destiny. He has sponsored and brought to effec- tive realization a naval building policy which will assure a navy of treaty strength if the terms of the Vinson act are carried out. That this will be done seems evident from a recent announcement by the secretary of the navy that bids will be taken promptly on the first part of this program, funds for which are now available. There is, however, a great necessity that similar effective action be taken with reference to building up a sufficiently large and efficient merchant marine. Without such a merchant marine, our sea power will suffer in comparison with that of other nations. Though the Presi- dent has repeatedly indicated his understand- ing of the necessity of an adequate merchant marine, it has so far been impossible, probably © because of the many urgent matters which have needed his attention in these times, to formu- late an equally clear and effective policy for the merchant marine. As a result there has been, and still is, considerable confusion with respect to what action should be taken in building up a merchant marine. As long ago as March 13, Secretary of Com- merce Roper sent to Congressman S. O. Bland, chairman of the committee on merchant marine, radio and fisheries his recommendations for a merchant marine subsidy program. Congress adjourned without taking action. On March 22 Senator McKellar asked for and received un- animous consent for the publication, as a senate document, of several compilations relating to ocean mail and other forms of government aid to shipping. These papers were prepared by SHIPBUILDING - July, 1934 CARGO HANDLING Number 7 John Nicolson, formerly director of several bureaus of the shipping board, charged with promotional work in aid of private lines. He was also counsel to the former shipping board committee on legislation. On Jan. 11 Senator Fletcher of Florida intro- duced a bill in the senate of the United States amending section 23 of the merchant marine act of 1920. The purpose of this bill was to allow the owner of vessels, documented under the laws of the United States and operated in foreign trade, a deduction in income tax in an amount equivalent to the net earnings of any such vessels during the taxable year provided that these sums be set aside for investment in the building in shipyards of the United States of new vessels of approved type. Also that two- thirds of the cost of any vessel constructed under this provision should be paid for by the owner from funds derived from other sources, and that such vessels shall be documented under the laws of the United States. This bill was approved by the secretary of commerce, but was strongly opposed by the treasury department. As late as June 20 the secretary of commerce announced the appointment of an inter-depart- mental committee to study, in co-operation with nationally known shipping authorities, broad questions relating to government shipping prob- lems. A report from this committee is to be available by early fall. The President has ap- proved the program and the personnel of the committee. It is now the plan to present to congress, when it again meets on Jan. 1, a def- inite clear-cut merchant marine policy which will have for its objective effective support for our merchant marine and practical encourage- ment for the replacement of obsolescent vessels and the addition of new vessels of the most modern and efficient type. If we are to have a merchant marine we must have action based on a carefully formulated policy and to do this we must have aggressive and intelligent leadership. We must look for this leadership to the secretary of commerce, MARINE REVIEW—July, 1934 9