The San Francisco call., 1899-11-20

rica. Australia and South America:
fourth, the necessity for the best ocean
mall facilities under the flag; lfth the
relations of the merchant marine 10 ex-
ports and imports and the value OF the
carrying trade. and finally, the promotion
or shipbuilding and contributory indus
tries.
BY various methods OF computation. the
annual value OF the ocean carrying trade
OF the United States is estimated at about
SlI5 900 ,OcC. including passenger and immi-
grant fares and payments for ocean malls
10 and from the United States. The argu-
ment that American shipping in the for
elgn trade Is handicapped by tariff duties
is met by reference 10 progressive legis-
lation beginning in 1872. by which for the
last I'VE years all materials for the con-
structlon or American vessels in the for
eiGn trade and all supplies for such YES
sells have been exempt from duties. Ton
mage taxes. which are imposed equally on
foreign and American vessels, are the
only form OF Federal taxation OF Ameri-
can shipping. The proposition 10 repeal
tonnage taxes would. therefore, In effect.
be equivalent 10 a bounty of about $780,
Ve annually 10 foreign shipping and would
relieve American shipping of only $SO, 900
OF taxes annually.
The report then takes up the methods
which nave recently been suggested for
the promotion OF the American merchant
marine. II Is pointed out that dlscrimln-
ating duties on cargoes in foreign YES
sells or on the tonnage OF foreign vessels
are an impracticable remedy on account
tions apply 10 the proposition TO grant
bounties on exports IN American vessels.
The proposition 70 grant American regis
try 10 foreign-built vessels in the foreign
trade is not regarded as feasible, in view
OF the fact that the cost OF operating yes
sells under the American flag is cOnced-
edly much greater than the cost Of operat-
Ing foreign vessels. The appropriation to
develop merchant marine through ocean
mall subsidies is only a partial solution
OF the question. While the need of at
least two fast mail steamship lines 20
Asia and one 10 South America IS indis-
putable, the establishment OF ship lines
would not sufhce 10 put our navigation
and shipbuilding on a satisfactory basis
The report is in the main devoted 10 a
consideration of Senate bill $3.50. reported
by Senator Frye at the last session as a
substitute for the bills introduced by Sem
ator Hanna and Representative Payne
IL is pointed out that the maximum ex-
penditure under that bill for any one
year is fixed at tsooO,OOO, from which
however, should be deducted l.5OO 900, the
present cost OF carrying our ocean malls
on American vessels, which will continue
whatever the fate Of the bill may be The
actual maximum annual expenditure pro-
posed by the bill IS thus in effect fixed at
SI,5OO.OOO. Assuming that all our vessels
registered for foreign trade Were fully
occupied throughout the year at the pres
ent time the new expenditure under the
bill would be in round numbers 50. 900 900
Before the maximum is reached the ca
pacity of our shipyards must be increased
many times, but tonnage under our flag
engaged in the foreign trade must he
multiplied several fold. This increase in
the capacity of our shipyardS and in our
tonnage In foreign trade VIII show ability
on our part 70 compete on more nearly
even terms with foreign nations. The pro
rata reductions in COMPENSATION provided
Tor when the maximum expenditure of
ance.