The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-11-20
TO Save SHIPPING
FACTS SHOW THE NECESSITY FOR
EARLY ACTION ON THE PART
OF CONGRESS
OTHER NATIONS ARE ACTIVE
CONDITIONS INFLUENCING THEM
ARE EQUALLY APPLICABLE
TO UNITED STATES
SUBSIDIES THE SOLUTION

SUBSIDIES THE SOLUTION
Less Than One Million Dollars De-
voted to Merchant Marine by the
United States, While Japan and
the Powers of Europe Expended
Nearly Twenty-Five MiIIIOns-CO-
gent Facts Set Forth In Detail.
WASHINGTON, Nov 1s-The annual
report of the commissioner Of navigation,
Mr. Chamberlain, which was made public
today, evidences the necessity of some
early action upon the part of congress if
the merchant marine of the United States
IS to maintain even a respectable position
, as compared with the shipping develop
ment of the other great powers of the
world Within the past twenty years the
United States in sea-going steam tonnage
has dropped from the second place next
TO Great Britain to the fourth position be-
low Germany and France, and if steamers
in foreign trade alone are considered be-
low Norway and Spain and only slightly
ahead OF Japan.
The report reviews the legislation of
other nations in behalf of merchant ship
ping, showing that last year the European
nations and Japan expended over $26 OOO,-
600 to promote 1t in various forms, While
the United States spent only $685. 1921. On
their steamship lines to China and Japan
foreign nations expended about $4,000, ,OOO
while for the same purpose the United
States expeDdad than OO0
The establishment of two or more fast
coast to connect with Asia will furnish
the capitals of Western Europe with
closer mail and passenger connections by
from three to five days than is now pos
sible by the heavily subsidized British,
German and French steamship lines
through the Suez canal.
EFFECTIVE REASONS.
The reasons which impel other nations
to develop their merchant shipping, says
Mr.. Chamberlain, apply with equal force
to the United States. Among them are:
First-The relations of the navy
to the merchant marine as an eIe-
ment of national defense.
secOnd-The relations of a mer-
chant marine to insuIar territory.
Third-Its relations to new mar
kets in Asia, Africa, Australia and
south America.
FOurth-The necessity for the
best ocean mail facilities under
the flag.
Fifth-The relations of the mer-
chant marine 10 exports and i'm
ports, and the value OF the carrying
trade. s.-as s=.4
Sixth-The promotion of ship
building and contributors indus
tries. -rss.r
By various methods Of computation the
annual value of the ocean carving trade
OF the United States is estimated at about
$ll5 100000 including passenger and i'm
migrant fares and payment for ocean
mails to and from the United States. The
contention that American shipping in the
foreign trade is handicapped by tariff
duties is met by reference to progressive
legislation, beginning in 1878, by which in
the last 1ew years all materials for con-
struction of American vessels in tba for
eign trade and all supplies for such trade
nave been exempted from duty Tonnage
taxes have been removed and there is
no form of federal taxes on American n
shipping. The proposal to repeal tonnage
taxes would therefore be equivalent to a
bounty of $75O0OO annually to foreien
shipping, and would relieve American
shipping of only $4,000 taxes annually.
Ihe report then takes up the methods
which have recently been suggested for
the promotion of the American merchant
marine 1t is pointed out that discrim-
mating duties on cargoes in foreign YES
sells or on the tonnage of foreign vessels
are an impracticable remedyon account of
treaty provisions. The same objection
also applies to the proposition to grant
pountles on exports in American vessels
Ihe proposition to grant American reg
lstry 10 Ioreign-builtvessel in the foreign
trade IS not regarded as feasible on 40
count of the fact that the cost OF onarot-
ing vessels under the American flag is
cOncededly greater than under a foreign
one.
The proposition to develop the mercha nj
marine through ocean mail subsidies, saws
the commissioner, is only partial solu.
tion of the question. While the need OF
/ at least two fast mail steamship lines tc
/ Asia and one to South America is indis-
/ putable, the establishment of such lines
WCuld not suffice to put our navigation
and ship building on a satisfactory basis
SHIP SUBSIDIES.
The report in the main is devoted TO the
hNy
4 Senator Frye at the last session &c y
1 substitute for the bills introduced bv g.
ator Hanna and Representative Pavne 7,
1 is pointed out that the maximum aynendi
I ture under that bill for any one vear ;.
fixed at $9,OOO.0O0,00O, from which. how.
ever, should be deducted 81 800 0OO tbt
present cost of carrying our ocean nafIs
on American vessels, which Will continur
whatever the fate of the bill NAV ho
The maximum annual expenditure nro
posed by the bill is thus in effect fixed a,
$I,5oOOOO. Assuming that all our vaeseI,
registered for foreign trade were fulIy' 90
/ cupIed throughout the year, at the mas
ent time the expenditure under the bil
would be in round numbers S., 900 600 Re-
fore the maximum is reached the capecft,
of our ship yards must be increased man
times, and the tonnage under our faf
engaged in the foreign trade must be mui
uplied several fold.
This increase in the capacity of ON
snip yards and in our tonnage in foreign
trade will show ability on our part tC
compete on more nearly even terms will
foreign nations. The pro rata reduc.
atlons in compensation provided Wher
the maximum expenditure of $4,000 600 is
reached will thus coincide with the les
sened need of government assistance.
During the decade ending 1898 ollr shir
yards produced only 213OOO gross tons