The Alaskan

Millions Squandered for Rich

One of the easiest ways to be prosperous in hard times is to own a steamship line and get a subsidy from the exporting money from the treasury.

The United States Senate found that out recently when it was running thru postoffice estimates.

It discovered, for instance, the Export Steamship corporation.

Let Senator Black tell you about this outfit:

"The steamships operated by this line cost the government $42,000,000. They were sold to the company for $1,299,000.

A Nice Fat Dividend.

After the company bought them, it secured large loans to operate them. The operating deficit, it was claimed, was $315,000. The line has a subsidy of $400,000 which gives it a dividend on what it receives from the government of more than 25 per cent annually.

In addition to that, before the dividend is paid, the president of the line gets $100,000 a year out of money supplied from the United States treasury!"

But that isn't all:

Just a Little Mail

The line, to earn this subsidy, carried just 12 pounds of first class mail—for $400,000.

And who do you suppose are on the board of directors?

J. P. Morgan and Vincent Astor—beneficiaries of a government dole!

Senator Black discovered one mail contract that should have cost the government $35.

It cost just $35,000.

During one year, a shipping concern carried three first class letters from San Francisco to South America; it also carried just 45 pounds of parcel post.

Just Coming Money

How much do you suppose it got for that?

The government got 6 cents for the letters; about $3 for the parcels—you paid the rest.

Forty-four shipping lines now get subsidies totaling $37,000,000 a year.

Some of them even fly foreign flags!