Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1882-12-30
Sally yennebtr Journal.
Augusta. Saturday Morning. Dsa. 80.
From the New York Tribune.
The Report on shipping.

The Report on shipping.
The majority Of the Select Committee
on Shipping are to be congratulated on
having presented an ample and able re-
port The suggestion Of The Tribune
that the experience Of England should be
embraced in the enquiry has been adopted,
and the causes which have transferred the
carrying trade from American to English
bottoms are fully discussed. The COM
mittee point out that the foreign shipping
trade being on the highway Of the ocean
10 open to all the world, and discuss
how tar the State can legitimately
support and foster an industry which it
cannot protect. They are unanimous in
declaring that shipbuilding is as impor-
tant as ship-owning and that mo nation
lean gain. or long hold, q strong position
ION the ocean unless it builds its own
"shIps." The report contrasts the COM
parative cost of construction on the Clyde
and Delaware rivers. and finds that from
causes at present existing shipbuilding
costs about one-third more in this country
than in Scotland. In other words. steam
ers which cost 800 ton there cost sl34
here. They therefore propose to equalize
the difference by allowing drawback
on American materials used in shipbuild-
ing equal TO the tariff on the same if i'm
ported.
With all due respect to the committee.
this is proposing one expedient and call
ing it by another name. 1t is, in fact, .
bounty, though called drawback. The
difference is considerable. A drawback
is the recovery of amounts already paid !;
bounty is gratuity paid out of the
National funds for work from which .
future advantage is anticipated. The pro-
posal is formulated in clause IS of the
bill. which provides that vessels built
here for the foreign trade. including that
between the Atlantic and Pacific coasts.
are to be entitled to a drawback on all
American materials used equal to that on
the foreign material. The clause was
suggested by the San Francisco Board Of
Trade. The objection is that it not only
establishes system Of bounties. but has
the further disadvantage Of uncertainty as
to the amount. 1t involves in many in
stances the calculation both as to quantity
and quality Of articles in position which
cannot be removed and weighed. and the ex.
act guage of which it may be difficult to as
certain. Such drawbacks would be very in
tricate to calculate and afford great op-
portunities for fraud. If Congress de-
cides on adopting a system of bounties, it
would be well to consider the plan adopt
ed by the French, who fix scale of al
lowance at so much per ton. Clause q
of the bill provides that where vessels are
built for foreign account and of foreign
materials, drawback is to be allowed
equal to the amount of the tariff less 10
per cent. Here again similar difficulty
will arise in calculating the amount.
Another clause admits all stores, cordage
and other materials consumed on board
free OF duty. The distinction between
bounties and subsidies is one that the COM
mittee have referred to but have not adopt
ed. Subsidies have fallen into disrepute
In this country on account of the iobbery
which existed with regard to the Pacific
Mail. But postal contract granted on
strict conditions and under severe penal
ties Is different thing from a subsidy
granted with only few conditions and
those conditions unentorced. The COM
mittee point to the policy of England in
this matter, and refer to the fact that she
paid 100000 in single year for mail
matter which returned little more than a
half of that amount.
1t was not to be expected that so mod
crate a bill should satisfy adventurous
spirits like Mr. s. s. Cox. This gentle
man and Messrs. Vest and McLane have
sent in minority report and formulated
amendments which provide for the admis-
sion of all shipping materials free. and
also granting the right to purchase ships
to citizens ofthis country, wherever said
vessels may be built'-in other words.
free ships. The clause as it stands would
enable foreign ships to be purchased as
we'll for the home as the foreign trade. 1t
would bring foreign shipbuilders into i'm
mediate competition with our own yards
and would treat American shipbuiIders in
= way that no other industry has been
with in this country. Still Mr.. Cox is
nothing if not original; so after signing .
report in favor of American shipbuilders
he proposes a clause which would close
nearly every yard in the country.
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