New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-16

To the Editor Of The Tribune.
SIR The death of Mr.. Collins recalls to the public
memory the great steamship line which generation
ago bore his name; its brilliant struggle with an
other line, first for mastery then for existence and
its sudden collapse when the door OF the National
Treasury suddenly closed upon lis outstretched
hand. The obituary notices remind me, too, that
the true causes Of that failure have never been
generally understood, and The numerous propositions
| now pending before CONGRESS for renewal OF the
old subsidy system suggest that this may he a good
time to tell the story II this subsidy and all subs
dies. Under the lee Of the TeXas-Pacihc tho careful
! observers may now see working Their way cau-
tionsly and noiselessy to wudward OF the Treasury
two Brazilian lines at $j,0c0,0O0 each, China
line at $j,O00,OO0 ,undry lines aggrcgating say
s.. 600, 900 more. or say 100000 600 in ALL Yes,
| it Is q good time to considerable facts.
Particularly the fact that every subsidy so far
given to any steamship line by any country in the
world has failed to produce the result claimed for it
or any result adequate TO the expenditure Mol
only have the millions and scores of millions spent
by America and Europe within single generation
failed TO establish single self-sustaining ocean
| steamship line to any foreign country, but the
failure is in many eases directly attributable TO the
! subsidy itself. In other words not one subsidized
ocean steamship line has yet succeeded IN pcrma-
neatly establishing itself on sclisuStainlng basis
except under conditions such that one or more unSnb
sidized lines have been able 10 do the same thing on
the same route; while, on the other hand, there arc
! not wanting instances of success by unsubsidzed
lines on the very waters where the subsidized lines
| have failed. As considerably more than TloO.Ooo-
| 600 have been expended to reach this result, and
| England who originated this system, has definitely
! abandoned il. America may rs well think abont II
before she enters again upon field where She once
.r... II. a sl.1F
The Collins line began in April 1919 aud stopped
! in January 1858. 1t originally received from the
| Government about 10000 round voyage but this
was afterward doubled to enable il to compete with
| another line. The Collins line then received about
double the compensation per mile that was enjoyed
! by the opposition yet the company represented 10
Congress, and produced figures 10 prove ITS aaSer-
/ tons, that it was losing money. The increase Of
it's subsidy had originally been for about a year, but
IT had gone from year Ia year. these things do
| in Congress- until that showing was made, when.
with the help Of Vanderbilt, the extra conpensa-
ton was cut Oft and already crippled 10y the loss Of
the Arctic and Pacific, the line fell. New capital
might have replaced the Arctic and Pacific. Con-
grcss m ght have acted more generously, but the com
panv opened its books and said, in effect, that neither
! ships nor subsidy WAS OF because 10 WAS losing
money on every trip. General eXtrav agancc alone
is not the whole story. From it, first day 10 IT, last
the company was never out Of Washington, IN other
words never out Of hot water; and hot water costs
money One year when Mr.. Collins had Just sue
ceeded after mortal struggle in securing his ap-
preparation. . friend congratulated him on The pros
pet OF relief from all his troubles Now, he re-
! nlird {" am wore of than overW IF was IN Wash
ington. Perhaps his friend did not think At neoes-a-
IS to ask why.
! Line. subsidized AT the same time as IL" col
Inns Line, died from tho same causes abont the same
The New-York and Brazil Line, subsidized in 1866
| died in 1872, because, ~ Commodore Garrison d.
cared, The trade did not pay even with the subsidy
and because Congress refused To increase ana rcuc"
| the subsidy.
The Pacific Mail Company. organized in 1913 to
buy from Arnold Harris la, subsidy for line from
! Panama 10 Oregon. has had subsidy after subsidy
Tor thirty years. and now tells Congress II viii per
ish unless IT gets $1,000, 900 moro during the next
| ten years Yet it has enjoyed with little Interrup-
tion nnd still holds, the monopoly Of the l'tlmus
| traffic between the Atlantic and Pacific Statcs-a
monopoly second only in valve, during It's prime, to
that of the East India Company. Starting with Il
capital Of $500 900 in the seven consecutive years
| Of It's greatest prosperity tins company. m SPIT"
| of the alleged cXtrayagancc of its management.
realized net earnings to the amount NJ Tl5.OnOCOO,
out of which it paid IS,500,OOO IN dividends. In
| one year its net earnings exceeded c1oOoooo,
| and its dividends S2,JO0,0OO. Yet during thirty
| years through all changes of persons aud OF for
tune the corridors of the Capitol have never ceased
to echo the footballs OF IFS agents as session after
| session they have come and gone asking Tor ,nh-
sidy, the increase of subsidy. or the renewal of
u subsidy or The saving of "a subsidy me tnne'
| energy, thought and money thus expended from
| 1872 10 1878, inclusive, ought TO pas handsome
dividend in these DAYS. SO much for the American
! subsidy system Twenty millions Of dollars spent
by the Government. Results. the collapse of every
line but one, and that talk, OF persnng.
How j, it with England The peninsuar and
Oriental Company. organized in 1870 after thirty
| eight years OF lavish aid from the BritGh Govern
| mcnt Is just able 20 hold It's own on fi30,00O a
year. or say S2,ij0,O00 Of onr money. tpOr It's
routes hundreds OF private merchant steamers come
| and 30 and enrich their owners without su sides
| Why! Because dc pcndcnce upon Government be-
gets n Governmental habit of thoneht ana action as
different from the commercial habit as profit is from
| loss Because the Government, having n right to
some return. imposes conditions fatal 80 comler al
! success. The lcnnsular and Oriental Line H. paid
for carrying the British mails 10 the Indian Emfre
| aud the British Asia'lc and Auiiraasan colonies
whether the trade of the ports touched at pays or
does not pay. Other hnes 20 whore y pay4 to go
| and carry the profitable cargOos for which the mail
| steamers have neither time nor space
| The Pacific Steam NAVIGATION Company. after
years of subsidy and monopoly in the trade of tho
west coast Of South America at the first touch OF
| competition and contraction, suffered a collapse
second only If second 10 that of our own Pacific
| Mail.
without subsidies the Inman, National. Guiou
| Anchor and White Star Lines have succeeded. So,
upon parallel routc and without subsidies, have
| the Bremen Line and the Hamburg Tine, while
tbc French Line has only been kept M ~ the con-
| slant AID muniiccnt support of It's Government
The Royal West India Mail Line was q great sue
cess So was the unsubsidizcd line OF the West In
dia and Pacific Company the same route.
| These are no new discoveries They are perfectly
well known TO all WHO are familiar with the sub
iect. If less familiar to Congress and the public,
The explanation il quite simple: all the Representa-
lions have from Interested parties. These
nmnnr the rrtsnnn Nhicll haAn led Erran1 n Ccn.e