The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-05-14
Subsidy Is Not Needed.

The report quotes recent utterance OF
President Mckinley on the remarkable In
crease of our shipbuiding. and says in
part:
"Our foreign trade then, is creasirg
with wonderful rapidity and our ship
building industry Is remarkably prosper
Gus, without subsidy. Why, then, should
the whole country be taxed to provide
gratultics for industries which are now
prosperous and which have every pros
jcct of continuing TO be more nrosperousg
Even II our foreign commerce were In
n declining. rather than in fairly pros
porous condition, It IL improbable that tho
present bill would give amy relief. and for
the following reasons;
because subsidies are graded according
TO the speed and capacity OF ships, and
are more than twice as high per ton of
capacity for the swift passenger steamer,
which carries but little cargo. as for or
binary freight steamers. which carry W
to 10 per cent OF our exports, The sub
sdy therefore. II Il affects rates at all,
will affect passenger rather than freight
rates.
VIII Not Help Freight Rates.
"As only about s per cent. OF the total
tonnage of the worlds shipping is subsi-
died. and as nearly the whole subsidy
goes TO the passenger and mail steamers.
the hopelessness Of trying by subsidy io
lower freight rates and increase commerce
Is apparent. Unlimited subsidy would ba
necessary 10 lower general freight rates.
II any one country attempts. by subsidy.
TO secure lower rates the subsidy must
60 "a all ships carrying freight other
wise the moment the few subsidized ships
lower rates for one country the unEuhzi-
died ships tramp steamers. ete) will
withdraw 70 other service and rates for
the worlds level. Hence II is practically
beyond the ability of any one country 10
materially reduce. hy subsidy ltH ocean
rates and in this way 20 increase ltE for
ogn trade
THE hiil does not sufficiently provide
for suhsldes based upon the amount q
freight carried nor Hoes II require apy de-.
crease IN freight rates
1T cannot be shown from the history II
subsidies that fhoy ever material, losar-
ed freight rates or increased tie COM
meree uf the countries granting them.
Trade conditions and net trade theories
fix the rates which Bhipners viii ,ay aad
WHICH ahipownern can got
Fearful os Trust.
Neither does the history o. subrldies
show that any country has ever but no
iis merchant marine IN this was Our sx.
psrience With che Collins HraNll and pa-
ciac Mail lines 81 the present. sApefience
~ France and i,Riy snd the Ba7t txpar.
ienCe of 81 nincr c2untrios ahlsh htxe
given real subsidies
~ the government ccftid nat. under the
proposed law take American ssiss f3r
crulsefa or transports on any mote fRycra
Die terms than it can now obtain them
viz f'v aaSinr fqr lucm e1 ther tr@ 0rth.
q alulA ou fhls score. get pctnius in Fs~
turn f.r i,a latiss subsidy expenditure .
Neither is There anything iu tbe blli which
would provide American aeamen far cur
national 5eferse Ia NJ WAY, then would
thia biu provide far The national defense
On the contrary ~ dralnins - "a. - a
year from ogf national treasury. N weak.
eus our national defense by taking r.caey
which might othergise he invested in moro
ships or in transports. provisions. ammuHi-
ton etc. IN case n war
WIN Not BaiId Marine
"suoh a large amount ~ subsidy. arac-
ticaiiy put 90 she disposal ry the fsw witc
hensht ~ This b,.i cannot bat teui 70
unite even vuara eipaelv than nnW. ths
great saipbuildiux ship0wnuR sri rail-
road interests concerned in fhis rusayuY4.
"Hy lhs tine these few Interests bring
N their foreign Owned sHirs and get .sstr
ships now hrinE built. into me subsidy
race the 10000 iinh wil undob bledlv
be reached. Hence. Il will be 20 .heir In
terest 10 combine 20 stop competition and
20 prevent their subsidy rates and III oats
from declining We believe that guca
combination wclIld he completed sooa ag.er
the passage of thls biu.
we place no fahh in the ant-trrst