The Republican journal. [volume] (Belfast, Me.) 1829-current, 1881-05-12
Our Merchant Marine.

the taxation of ships and vessels engaged
in the foreign trade had its second read
ing in the Massachusetts Senate Mr.
Hastings OF Worcester, who supported the
measure. said that the decline of Ameri-
can shipping was admitted on all sides
In 1850 the total volume Of the exports
and imports was some $500, 900 900, of
which the American business was $3.50, :
0OOO0O. In 1879 the foreign trade had
grown enormously and increased to about
Sl.2O0,00O 700, and only S272 900, 600
was carried in American ships and SOIL
0OO000 in foreign vessels. 1t was lust
at this point that American protection to
home industry breaks down, until now
we see a steady decline. The American
shipowner has to pay more for a ship for
maintaining and equipplng it, than the
English owner. He cannot run as cheap
ly as the foreigner, which condition OF
things bears heavily against him. Es-
pecially in the matter Of wages there is a
discrimination against Americans. one
Of the most important factors is local
taxation, which is different from the tor-
eign system. All these tendencies are
working directly against the interests of
American ships. Our great competitor
is England. The English system pro
vides 4 system OF local taxation precisely
like that incorporated in this BILL that
is. the net income Of 4 Ship is taxed. but
the ship itself is not taxed 1t is said
that the passage of this bill will increase
the burden of taxation upon other classes
OF property. This is. however. not a
measure of exemption. but one of protec-
ton. The effect of the bill will be to eN-
empt onetcnth of one per cent. Of the
property invested by the State in foreign
shipping, or 81 ,500,0OO.
Mr.. Snow of the Cape District spoke in
opposition to the bill. ana said that
American commerce has declined because
ships can he built cheaper abroad than
they can be built here, and can be sailed
cheaper by foreigners than hN our own
people. our capital is not invested in
shipping because more tempting oppor-
tunlties for investment are offered hv
Western railroads. Mr. Snow gave sta
tistics to prove that immense profits are
derived from the foreign trade by ship
owners, amountingin some cases to thirty
per cent. per annum, and lie thought
that property SO valuable should not be
exempted from taxation. Abiding to
the decline OF the fishing interests Of this
country, Mr.. Snow showed the inconsist-
cncy of cXcmpting from taxation ships
and vessels engaged in foreign trade. and
taxing the capital engaged in the fish
cries. He declared the shipping engaged
in the foreign trade to he the best pay
ing property in Massachusetts, and urged
that for this reason the proposed eNemp-
ton from taxation should NOT be made
AIr. FesSenden of MiddlcseN said that
the question of encouraging American
commerce could not become a national
one at present because the states which
are not upon the seaboard do not take
much interest in it, The matter is left
therefore, to the States bordering On the
sea, and the State OF Rhode Island has
already acted upon it, He urged the
great Importance Of the question and ia
vored the bin.
Messrs. Rice of Essex, Corbin Of Wor-
cester and Horton Of Essex opposed the
bill, and Mr.. Reed Of Bristol favored it.
Mr.. Wilton Of Plymouth moved to amend
the bill in the second section. So that it
shall read:
No ship or vessel shall! he deemed to be engaged
IN the foreign carrying trade within the meaning
OF this act unless the shall at the date OF as
sessment be either actually engaged or awaiting
employment in such trade or in port undergoing
repairs.
The following correspondence publish
ed in the Boston papers of Monday last,
shows where Secretary Blaine stands on
this question
To the Editor of the Herald In conversation
with Secretary Blaine when last in Washington |
took occasion to refer to the attempt of the State
Legislature to change the mode Of taxing ship
property engaged in the foreign carrying trade
1t at once elected his interest and attention and
enclose a letter since received from him in refer
euce to it. The special committee on commerce,
in its recent investigations found as set forth in
its report, that the tax question was the most
serious drawback to our foreign navigation inter
ests, and an obstacle easily removed without work
ing injustice to other classes of property | hope
Massachusetts will improve the opportunity she
now has to lead in this movement sure to come
as she has led in many good works before
WILLIAM 4 RUSSELL
Lawrence, May !, ISL.
WAsHINGToN, d e.. May 2 1881
Hon William A Russell NJ O. Lawrence Mass
Dear Sir: The removal OF local taxation from
vessels engaged i'll the foreign trade would be an
immense help in the effort to revive American
commerce. Since our conversation in regard to a
bill to that effect pending before the Massa-
chusets Legislature, have felt lmpelIed to write
You word in the hope that may quicken your
zeal i'll urging its passage If ships in the foreign
trade of the United States can be taxed, as in other
countries, upon their income, and not upon their
cost think great step would be taken i'll the
right direction. No person having taxes on other
property need complain Of an unfair discrlmina-
tlon because if we can encourage ship building 4
this way We will ensure an income tax. whereas,
If we do not quickly do something to develop our
navigation interest We shall be utterly driven from
the sea by our wiser and more far sighted rivals
In other words it would be better to have the nav
igation property made prosperous under wise
system Of taxation than to have it entirely disap
pear under an unwise system. There need be no
jealousy on the part of the coastng trade because
that is confined to American vessels, and those
engaged in it all sailing under the same condi