The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1868-05-30
Substance Of the Argument Of
W. G. Jones, Esq,
Before the Committee of Commerce on
Granting the subsidy Of $4,000 TO the
Line of Steamers TO San Francisco, May
9th. Is6.

Mr.. JoD= aid. that be wished to draw = line
of di-tHssi5n between granting a subsidy 10 the
KLgu1a, and % the line Of STEAMERS a. contem-
plated. The EIIszss Was owned here; Der sup
pliez were al purchased, her repairs al made
here She sent DO money out Of the country all
sbe made was srsnt here, and If she did not tend
70 develop The resources Of the country, she did
not diminish the actual capital, BY sending 1t out
Of the country but kept IL in circulation among
Our own people On the other hand. the steam
es are ownsi BY a foreign Company, they pur-
chase their supplies in san FaDei-oo, their repairs
are made there, they pay for neither Wharfage OF
water; what they make from or people l. 50
much capital taken from the country 1t Is a cur
rent flowing out that never returns
The granting q subsidies Is wrong in principle
Il has 4 tendency 10 build NJ monoPoiies. and 70
eoufer exclusive privileges on one GAS. while il
impJverisbes, or drives another from that healthy
competition which IL the life Of al trade. To
grant the subsidy asked for would assen upon the
people the iDcubGs Of corporate power. az whose
mercy their commercial interests would he plaeei.
II would operate for The benefit Of the few al the
expense Of the many. The history Of the world
shows that al monopalies use their power with an
eye single TO their own interests and oprressiyely
upon the masses. II i against the true principles
OF government 20 legislate in favor Of a s~oulIess
corporation 70 the prejudice Of Individual enter
prise.
To grant this subsidy l. wrong in policy, on the
ground that il makes 3 precedent for partial legisla-
tion-an entering wedge for comforting similar
benefits by legislative action. One wrong step
often leads to the most disastrous results.
Il Is inexpeiient at this time because we need
al our means for The Development Of the Resumes
Of these Islands, BY Internal improvements, BY
opening and improving roads, by deepening and
protecting harbos, making wharves and erecting
light houses.
By constructing roads and improving h4rbo-s,
we will give a stimulus 20 industry. our agrieul-
tgre can be established On q firm and permanent
basis, and frrights viii be increased 50 that we
tan command steam navigation without a Subsidy.
We have 10 assurance that a renewal Of the
subsidy will not be asked for at the end Of two
years. VIII our freights from agricultural pro-
dGets be 50 increased that the steamers can sup
port themselves without q subsidy? Can new
cane, rice and coIee Plantations, be opened and
lime and orange trees be brought to bear within
the limit Of two years, - thar the freight on their
increased production will be equivalent TO p 600
dollals Ter annum? The widest dreamer will not
assert thas such n state Of things can he realized.
Then, If the new subsidy Is not granted at the
end Of that time, our $500 o will have been
thrown away and the additional steamer viii be
withdrawn. a. q result we viii De forced 10 the
necessity Of seeking a new line Of packets TO sup
ply the place of that which has been driven from
our trade, BY our grant Of priyileges which amount
20 q monopoly.
One steamer l. now secured 70 Us for ten years
without a subsidy. \ failure 70 grant a subsidy
cannot drive that steamer away. For freight and
passage sbe now comes in fair competition with
vessels. That competition operates for the
Of the PEOPLE in securing the lowest price
for freight and passage, aud active e~zertions to
secure quick trips on the part Of the packets
Remove that competition by granting the sub
sidy and driving our packets from the trade, and
the price Of freights and passage will be fixed to
the maximum standard, even if such standard is
fixed BY contract with the government Of these
I-lands. And what will be the consequence?
More than nine-tenths OF our exports now 60 TO
San Francisco. II a monopoly Is created by the
steamer 99-le0ths viii 20 there. By reference to
the report Of the Collector Of this port. l find
that the tonnage in the export OF sugar amounts in
round numbers TO Is 900 tons; on molasses. rice,
paddy, coffee, fruit and al other Island products,
10 about 600 tons more, thus making an aggre-
gate Of . 900 tons. The price of freight charged
by the steamer, is Elk dollars Per ton The packets
freight at 4n average Of FIVE dollars per ton,
for less: and if brought in competition
with the steamer, our products can be taken 10
for less than FIVE dollars per ton. The ad-
iitional freight Of one dollar Per ton, on the
amount Of our actual exports to San francisco,
amount 10 more than $4,000. This
amount added 10 the subsidy would make our loss
Dy the steamers amount 70 Si5.0 600 Per annum-
But n i Is not all. We are yet subjected 70
another burden aud another loss. / find by a
reference 10 the reports Of the Collector,
hat the number Of passengers arriving and de-
rarting from the port Of Honolulu, for the year
Is66, amounts t. l,5SG, and in the year lo67
ne number amounted 10 l,572. OF this amount
.bout ten per cent. arrived and departed from
md for other ports than San Francisco. Deduct
NJ this, IL would leave an average passage TO
port Of 1900 FER annum. The packets
barge 500 Per head for passengers, the steamers
s75 per head, thus making u difference Of SIS.
N each passenger. This would make the enOr-
difference Of S22,5O0, in favor of the pack
IT. and against tbe steamers. This added 10 the
ormer amount makes the startling sum Of S61 $50
1er annum, which we would lose By granting the
aubsidy and driving the packets from our trade.
We would also lose the trade of the packets with :
,ur merchants and planters and their expenditures
or their supplies and repairs and for wharfage
md water. What increased benefit would result
% our commerce from this exrenditure9 II
mounts 10 a tax Of one dollar Ter head for every '
nan, woman and child in the Kingdom, for the I
,eneft of a foreign corporation, without a body :