The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-05-14

washington. May 13.--Thc minority re-
port on the shipping subsidy bill opposing
that measure has been nled In the house
of representatives by the majority of
the members OF the democratic minority
of tho committee on merchant marine and
fisheries, Representative Fitzgerald
tMassD drew up the report. which was
signed also by Representatives neyrlrs
tCal), DAILY IN ~ ana speight (Miss),
Three other democrats OF the committee,
Messrs chatter. Small and Ransdei, have
heretofore submitted their views. uphold
ing the general principle OF government
aid TO the merchant marine, but pointing
out defects IN the bill. The prcsont-~e-
port therefore, represents the opposition
to the measure both In principle and in
detail, In the main It Is an argument
against government subsidies and asserts
that most of the proposed 100000 sub
sldy will go TO a few favored concerns
without building up American shipping
in general or encouraging American ex-
ports.
The report quotes a recent utterance
of President Mckinley ON the remarkable
in part. Our foreign trade Is increasing
with wonderful rapidity and our ship
building industry Is remarkably prosper
Gus without subsidy" Why, then, should
the whole country be taxed to provide
gratuitics for Industries which are now
prosperous and which have every prospect
OF continuing 10 be more aud more pros
porous!
Even IL our foreign commerce were In
declining rather than fairly prosper
GUS condition, it Is improbable that the
present bill would give any relief; nnd
for the following reasons;
Because subsidies are graded according
10 the speed and capacity of ships aud
ARE more than twice as high per ton OF
capacity for the swift passenger steam
ers which carry but little cargo, as for
ordinary freight steamers which carry 80
or 30 per cent OF our exports, The sub
sidy, therefore, n II affects rates at all
viii affect passenger rather than freight
rates.
As only about s per cent OF the total
tonnage OF tho worlds shipping is sub
sidized, and as nearly all OF the present
subsidy goes TO passenger and mail steam
ers the hopclessncss OF trying by subsidy
to lower freight rates and increase com
merce is apparent. Unlimited subsidy
would he necessary 10 lower general
freight rates II any one country attempts
by subsidy TO secure lower rates. the sub
sldy must 30 to all ships carrying froigats
Otherwise the moment the few subsidized
ships lower rates for one country the un-
subsidized ships tramp steamers. ctc)
viii withdraw to other service and rates
for this particular country will 30 back
10 the worlds level Hence, Il Is pract
cally beyond the ability OF any one coun-
try 10 materially reduce by subsidy Its
ocean freight rates, and IN this way TO
increase is foreign Lcade,
The bill does not sufficiently provide
for subsidies based upon the amount OF
freight carried, nor does It require any
decrease In freight rates.
II can not be shown from the history
OF subsidies. that they ever materially
lowered freight rates or increased the
commerce Of the countries granting them,
Trade conditions, and not trade theories,
fix the rates which shippers viii pay. and
which shin owners can get.
Neither does tho history OF subsidies
show that any country has even built up
It's merchant marine In this way. Our ex~
perience with the Collins. Brazil and Pa
clne Mail lines * the present experience
onco Of all other countries which have
given real subsidies.
As tho government could not. under the
proposed law, take American ships for
cruisers or transports on any more favor
able terms than it can now obtain them
viz. nv paying for hem all they are
worth--it will on this score get nothing
In return for It's lavish subsidy expendi-
lures Neither Is there anything in the
bill which could provide scamon for our
National defense. In no way, then. would
this bill provide for tlS National defense
On the contrary. by draining $0000,000
year from our National treasury IL weak
ems our National defense by taking money
which might otherwise be invested 10
more ships or In transports. provisions,
ammunition. etc. in case OF war.
Such large amount OF subsidy prsc-
tically put at the disposal OF the few, who
by thls hill can not but tend to unite,
even more closely than now, tho great
ship building, ship owning and railroad
interests concerned In this measure. BY
the time these few interests bring In their
foreign ownerships and get their ships
now being built into the subsidy race.
the 50 600 coo limit will undoubtedly be
reached Hence ii viii be to their inter-
est to combine to stop competition aud
TO prevent their subsidy rates and profts
from declining. We believe that such a
combination would be completed soon after
the passage OF this bill
We place no faith In the antitrust
amendment All the Federal and state
antitrust laws now in existence have
proven futile and have not lesBened the
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