The herald., 1898-07-13
HAWAIIAN ANNEXATION
AND OUR SHIPPING LAWS
ACKNOWLEDGEMENTS,


liza, fronting the Pacific, Hawaii with the
artificial barrier removed has furnished US
a source of trade and market so totally
out of proportion to its size and Importance
as to show the vast possibilities OF Pacific
ocean trade were the conditions made IA
vorable by as sensible trade policy with
other places as we have had with Hawaii.
This trade is no longer foreign. One Of
the effects Of the annexation of Hawaii Is
to make an important part Of the method Of
trading with 1t Illegal AT present a great
deal of freight and most Of the passenger
business with the islands is done by ships
of foreign register. The largest of these
touch at the islands on the way to Japan
and China or to Australia. The shipping
| laws of the United States, dating back to
an era of economic blindness prohibit all
foreign vessels from doing business be-
tween two United States ports. Conse-
quently, the commerce of Hawaii with San
Francisco now done by the large foreign
steamers that make Honolulu a port of
call is Illegal.
The prohibition of this business to exist
ing lines will affect also those proposed,
one of which is planned to have its Ameri-
can terminus in Southern California
The difficulty in this situation Is in three
main points.
One of these is the friction that will likely
occur on the part of the Australian colonies
(Which have subsidized a steamship line)
in finding ships of their register and flag
prohibited from taking any share in the
trade. These colonies have been exceed
ingly liberal in paying part of their subsi-
dy to steamers carrying the American flag
and may we'll resent the absolute exclusion
of any Of their own ships from the busi-
ness. This will affect other lines similarly
situated, as the line to Hong Kong and the
proposed Japanese line, etc.
Second. The popularity Of the American
shipping laws. These laws prohibit the
importation of foreign-built ships by Amer
fcans or the register Of such under the
American flag. The only other thing open
ly prohibited from Importation Is obscene
literature. This prohibition against ship
purchase was avowedly intended to pro-
mote ship building in America. Whether
the prohibition against the purchase Of
foreign obscene books had similar object
and was intended to promote the home pro-
duction Of such rubbish is for the pro-
tectionist and his artificial barrier to recon-
Gle. 1t is to be hoped that the destructive
results of the policy on American ship own
ing have been paralleled in the obscene lit
erature business.
The present effect of the American ship
ping laws is to paralyze American enter
prise in this field. The business of ship
building is in the hands of few large
firms These are supported by govern
ment contracts. While they can build fine
ships and at cost to foreign governments
low enough to secure contracts, they still
keep up the price by their legalixed monop-
ely to Americans. The result Is the
antiquated types In the coasting trade
which must be American, and the almost
total absence from the ocean of modern
steamships under our fog. The policy of
the ship builders has been narrow and in
furious alike to them and to the country.
The extra investment of capital these
laws force upon Americans going into
shipping have proved fatal handicap
against the American. His own govern
ment denies him any part in the business.
There are other defects in these laws that
work against American ship owning. These
laws are far behind those Of England in
insuring competent officers, good disci-
pine, safe loading, proper care. etc.
laws are almost alone in the civilized world
In taxing ocean-going ships. Both the
state and the municipality where the ship
is registered impose full tax. This is one
of those blind follies which well inten-
toned men unwilling to work out problems
of politics and economics unwittingly I'm
pose on their fellows
I have long ago pointed out that this tax
Is unjust in that the state and city impose
a tax on ocean-going ships for protec-
ton that 1t does not and cannot give. The
ocean-going ship is subject to federal law
and federal protection only when doing it's
business. 1t is also impolitic, for SO long
as another state or country does not tax
ocean-going ships the taxing state will
throw the shipping business into the free
peoples hands.
Besides this, the tax on ocean-going ships
produces no revenue in California. The
tax has driven the lumber boats to Wash
Hawaiian trade to Honolulu and others to
Australia, England, Japan, etc.
1.-THE annexation of Hawaii" and other
territorial enterprises, whether temporary
or permanent, indicates the immediate
Importance Of thorough and sensible re-
vision of our shipping laws. Such re-
vision is necessary in both federal and Cali
fornian law, II Americans are to take their
proper place In the new business to be
developed.