The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1889-09-27
NEED SUBSIDIES.

American Ships Cannot Compete With
Necessity OF Speedy Action.
"The coming joint meeting of the
Pacific coast congressional represen-
tatives and the members of the
Chamber of Commerce will undoubt
eddy stir up the people," said MIR.
John d. Spreckels of the shipping
firm of Messrs. Spreckels Brothers
this morning, Nand of course my
position as managing director of the
Oceanic Steamship Company natur-
ally causes me to take considerable |
interest In any meeting toward bene- |
fitting the shipping interests OF this
country.
"We are, of course, interested In
maintaining direct steamship con-
nections with Australia and New
Zealand, and are prepared to estab-
lish either fortnightly or weekly
service if the United States govern
ment guarantees the payment Of a
sufficient amount of money for pos
tai services to make the line tinan
cial success. You cannot run line
of steamships in the Australian trade
without government pay, because 1t
would be losing business. At pre-
sent we are subsidized by the New
Zealand and New South Wales gov
ernments, and have been since the
beginning of the contract with our
company, but the contract time ex
pres in November, and New Zealand
| has notified us of its intention not to
renew, while New South Wales has
agreed to extend the contract for
another year at reduced rate.
AID NEEDED.
"Thfs is very unsatisfactory state
of things, and you can readily under
stand it is calculated to paralyze the
enterprise because of the uncertainty
regarding the American policy on
the general subsidy question, and to-
wards this line in particular. Ii we
had a guarantee that the United
States Postofice Department would
pay a sufficient amount for the
transportation of the American mail,
which is now considerably larger
than the British mail carried by our
steamers, there would be encourage
ment to proceed and develop the
trade between the coast and Austria
liza. But we have no certainty at
present, and as the colonial govern
ments make such contribution by
the Washington government a pri-
mary condition to continuing further
subsidy to the American service, you
will perceive that the permanence Of
the Australian line depends upon
congressional action. It must act
promptly, moreover, unless it wants
the Canadian Pacific to cut into the
Australian trade and carry it past
San Francisco to Vancouver"
did you present the facts to the
United States Postmaster General? g"
Mr.. Spreckels was asked.
''The facts have been before the
Postmaster General and Congress.
They are all we'll known to the adj
ministration and the country. AL
though nothing effective has been
hitherto done in the matter by the
government, I am in hopes that this
movement to restore American ship
ping and extend American foreign
commerce will be successful, and
that we shall be enabled to run a
first class mail and passenger SER
vice to Australia on permanent
basis. with the cooperation of the
Colonies This is an important ele
ment in the business, although, of
course, Congress is we'll able to put
us in an independent position"
ENGLISH SUBSIDIES.
care all the British lines to Aus
tralia subsidized?"
Eyes. The Peninsula & Oriental
lines to Australia are paid about
$4,000 year jointly by the Brit
ish government and the Colonies.
The P. & o. has also a subsidy to
India and China. The British India
line has been paid $4,000 a year by
the Queensland government for
mail subsidies for many years past,
and the New Zealand government
pays about 100000 a year for
direct steamship fortnightly service
to London in addition to its subsidy
to the Oceanic Company for the
American route. The German and
French lines to Australia are each
paid about $1,O00,000 a year in sub
sides. These are round figures,
and give an idea of the substantial
aid England, Germany and France
give to the steamships under their re-
spective flags in the Australian trade.
Yet these steamers carry full freight
and passenger lists. The subsidies
guarantee them against loss under
any probable competition. Belgium
is establishing subsidized line
from Antwerp with the view of com
peting with England for the wool
and iron trade of Australia, and
every one knows what England and
Canada contemplate on the Pacific
Australian route.
"If we had similar liberal treat
ment from the United States gov
eminent we could divide the Aus
tralian travel, which amounts to
about 1900 first class passengers
monthly. AS the second and third
class accommodation IN these now