The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-14
President McKinlcy's Utterances Used
as an Argument Against the Bill
Pending I'm the House.
REPORT OF THE MINORITY
DEMOCRATS SAY PROSPEROUS IN
DUsTRY NEEDS NO ASSISTANCE.
They Oppose Voting $9,0OO,OOO to n
Few "FavOred Concerns" When No
Benefits Are to BE Derived.

report on the shipping subsidy bill, oppos-
ing that measure, has been filed in the
House of Representatives by the majority
of the members of the Democratic minor
ity of the committee on merchant marine
and fisheries. Representative Fitzgerald,
of Massachusetts, drew the report. which
was signed also by Representative Devries,
of California, DAILY, of New Jersey, and
Speight. of Mississippi. Three other DEM
ocrats of the committee, Messrs. Chandler.
Small and Ransdell, have heretofore sub
mitted their views, upholding the general
principle of government aid to the mer-
chant marine. but pointing out defects In
the bill. The present report, therefore,
represents the opposition to the measure,
both in principle and in detail In the
main ii is an argument against govern
ment subsidies, and asserts that most of
the proposed 100000 subsidy will go to
a few favored concerns without building
up American shipping in general or en-
couraging American exports
The report quotes a recent utterance of
President Mckinley on the remarkable in
crease of our ship building. and says In
part: "Our foreign trade. then, is increas-
ing with wonderful rapidity and our ship
building industry is remarkably prosperous
without subsidy. Why, then, should the
whole country be taxed to provide gratui
ties for industries which are now prosper
Gus and which have every prospect OF
continuing to be more and more prosper
Gus? Even if our foreign commerce was
in a declining rather than a fairly pros
porous condition, 1T is improbable that the
present bill would give any relief; and
for the following reasons: Because subsi-
dies 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 steamers, which carry but
little cargo, as the ordinary freight steam
ers, which carry so or 80 per cent. Of our
exports. The subsidy. therefore. If it af-
fects rates at ALL will affect passenger
rather than freight rates.
LAS only about 5 per cent of the total
tonnage of the worlds shipping is sub
sidized. and as nearly all OF the present
subsidy goes to passenger and mail steam
crs, the hopelessness of trying by subsidy
to lower freight rates and increase COM
merce is apparent. Unlimited subsidy
would be necessary to lower general
freight rates. If any one company at
tempts by subsidy to secure lower rates.
freights. Otherwise the moment the few
subsidized ships lower rates for one coun-
try, the unsubsidized ships tramp steam
ers, etc., will withdraw to other service
and rates for this particular country will
go back to the world 8 level. Hence is 1t
practical beyond the ability of any one
country to materially reduce by subsidy its
ocean freight rates and in this way to
increase its foreign trade.
CONDITIONS FIX RATES.
for
subsidies based upon the amount of freight
carried nor does 1T require any decrease
in freight rates: 1t cannot be shown, from
the history of subsidies, that they ever
materially lowered freight rates or in
creased the commerce Of the countries
granting them. Trade conditions and not
trade theories fix the rates which shippers
will pay, and which ship owners can get.
Neither does the history of subsidies show
that any country has ever built up its mer-
chant marine in this way. Our experience
with the Collins, Brazil and Pacific mail
lines is the present experience of France
and Italy and the past experience of all
other countries which have given real sub
sides.
LAS the government could not under the
proposed law take American ships for
cruisers or transports on any more favor
able terms that it nov obtain them,
viz by paying for them all they are worth.
1t will on this score get nothing In return
Neither is there anything in the bill which
would provide American seamen for our
national defense In no way, then, would
this bill provide for the national defense.
On the contrary by drawing 100000 a
year from our national treasury, 1t weakens
our national defense by taking money
which might otherwise be invested in more
ships or in transports, provisions, ammuni-
ton, ETC., In case of war.
''Such a large amount of subsidy, prac-
tically put at the disposal Of the few who
benefit by this BILL cannot but tend to
unite, even more closely than now, the
great ship building ship owning and rail-
road interests concerned in this measure
By the time these few interests bring In
their foreign owned ships and get their
ships now being built into the subsidy race
the 100000 limit will undoubtedly be
reached Hence Ii will be to their interest
TO combine to stop competition and TO pre-
vent their subsidy rates and prohts from
declining We believe that such combina-
ton would be completed soon after the
passage of this bill.
1--WE place no faith in the antitrust
amendment. All the federal and State anti
trust laws now in existence have proven
futile and have not lessened the rapid
growth of trusts. We see no reason for
thinking that this antitrust amendment
would prove more effective
FOR CONVEYING RICH TOURISTS.
''By this bill, which processes to be in
tended to increase the expectation of
American produce. the government is asked
to pay TO the stockholders of single
steamship lire s15O0.OO0 a year for carry
ing abroad in its folr first-class passenger
ships not American products, but Ameri-
can tourists. who can afford to travel and
spend their money in Europe. That is the
government is asked to pay. not for the
expectation of American products, but for
the expectation of American customers"
The report contends that even If SUBJ
sides are justifiable in building up an en-
terprise. such as the Pacific roads, vet
there is no justification for "a reward to
existing lines" AS showing the proportions
of the proposed subsidy IL is stated that
s., 100000 a year Constitutes interest upon
$450.0o00o0 at the rate now yielded by our
government bonds" and IL is urged that the
government could better afford 10 use this
aggregate Ito build ships and give them
away than to make the donations provided
in this BILL Ii is stated that $500 would
go to ships over twenty years old and.
therefore, encourage the running of these
OLD ships for the sake of subsidy, until they
go to the bottom with crew and cargo.
The report while IL does not advocate the
free ship theory points out that in it's in
vestigations IL found that every nation ex-
cept the United States allows its citizens to
purchase ships where they pleased In an
swer TO the proposition that other nations
are increasing the shipping by subsidies.
the report points out that Great Britain,
which has the largest shipping subsidies
less than per cent. of her tonnage. and