, 1881-10-14
AMERICAN SHIPPING.
Letter 10 san Francisco ..Bulletin."I
EDvrnp I.RrIIpTtN.' A. tns

letIn and other papers relative 10 the
building Of ships on this coast seem
to meet with public favor, it may be
worth while To correct an impression
that exists among many people as to
the taxation which is supposed to
crush out American shipping as com
pared with English. The "JournaI
of Commerce" of yesterday contains
the following outrageous statements:
"There should be nominal taxation
Oh shipping la the United States. The
heavy taxation ROW imposed renders 4
/ United States mercantile marine impOSsi'
! ble Then iuJiiciouS system of bountl"S
tor freight and for mail carried is needed
| Great Britain since 1887. hts pail the
enormous sum of 1922. 10000 10 her
steam marine. or about $1OO0.O0 ptr
year, while the Unite! States paid S3l.-
4O5. Again. the taxation on vessel car.
rying 100000 per annnm ih the United
States il about $50. 600 year. while IN
England it is only $1,000. The difference.
$iS. 400. is a very good profit. Make The
American ship under the law the equal OF
the Eng iSh ship. and We will have flour
ishing mercantile marine.
What this writer means by = yes
sci Carrying 100000 per annum in
the United States" is not apparent,
but if he means that taxation is 30
per cent either of the value or earn
ings of a vessel, should like TO see
his authority for such wild assertions.
Tho facts are that the United States
levies only one uniform tax OF 80 els
per ton register on all vessels enter,
ing an American from n forei gn port,
whether they carry the American
flag or that of any of the treaty
powers. This tax is payable on ev-
cry voyage made by such vessel from
foreign ports, and though burden
some (particularly on steamersl and
unnecessary now, (for the Federal j
revenues are largely in excess Of the
present national requirements 1t can
not be abolished as to American YES
sells, without being likewise taken off
the vessels OF ali the treaty powers,
and therefore, so far rs discrlmina
tons against our own vessels is con
eerned, the removal of that tax
would leave matters precisely as they
now are.
But the taxation that discriminntes
against American shipping compared
with British, is state and municipal.
BY the definition of property for the
purposes of taxation in the Califor
MIA Constitution, shipping being one
of the "matters and things real, per
sonal aud mixed, capable Of private
ownership" is necessarily assessed
at the residence of the owner at its
"full cash value," whether profitable
or not. Sc that = vessel worth 800,
600, moro or less according to the
rate Of taxi regardless Of her earn
ings, while if Owned in England, her
owners income from freight. a. from
other sources of profit, would betax
ed 6s on the FL, or II per cent o.
her net earnings. Hero and here
only is where the discrimination
comes in. 1t can be removed onIy
by an amendment to the State Con
stitntion, which, whenever our Leg
islature has the courage to propose
it, hope will be framed in such n
manner as to relieve all personal
property from assessment. and thus
permit the investment Of our vasi
idle capital in manufactures and
mills as well as in shipping.
Meantime for the information oi
thosa of your readers who may in
cline to take stock in ship-building
company on this coast, allow me t.
state that the laws of Washington
Territory, where the vessels woulu
be built, permit the formation o.
such corporations there under yer.
favorable conditions; that taxation
there is light, compared with thi,
city; that by All act of our las, Legis
lature, whose constiiutionality has
been affirmed by the Supreme Court
certificates OF stock are not now liza
BILE to assessment in California. A.
vessels are assessed at the port where
they are registered, those owned BY
such company, organized III Wash
ington Territory, ss is now in con
temptation, would be subject only 10
the rate of taxation levied in Wash
ington Territory. Hence. this bug
bear of discriminative taxation would
almost wholly disappe.r.
Let it be borne in mind that the U
5. Government lsVies no diserimins
ting tax against the employment OF
American shipping. Blu, ad valorem
State and city taxes are what create
the discrimina alton, as compared with
the British income tax. Moreover
Great Britain and Franc, paw large
subsidies to their steamer lines,
which We once undertook TO do hy
special enanc;ment instead OF by
general laws; hence SO much orruo
tioa in the halls of congress, that the
system had to be abandoned. Bu,
no foreign lines of sailing vessels
have this advantage over American
vessels; and considering all the priv
ileges offered on this coast in cheap
timber, high and steady lreights and
Thy the method of procedure above
indicated) low taxes, there is no douot
whatever that we can build in Puget
Soand better vessels for less money
than in any Eastern port, and can
employ those vessels to compensatory
advantage in spite Of foreign con-
petition. Shall we undertake it?