The times. [volume] (Richmond, Va.) 1890-1903, 1900-02-21
Yours very truly,
r. A. DUNLOP. Secretary.
TO MR.. HAY.

Yours very truly,
R. A. DUNLOP Secretary.
ANSWERS TO MIR. HAY.
The Cochran,
Washington. D. c.. Feb. Is. 1900.
z. A Dunlop, Esq. Secretary Chamber
OF Commerce. Richmond. Va:
Dear Sir-My stteIl,ion has been called
10 q letter published in a Richmond pa
per, alleged to have been written to
you by Representative Hay. of Virginia.
who states his objections to the pending
ship subsidy bill and upon which OBJ
joctionS he purposes to vote against H.
venture TO write you, whom 1t Is my
good fortune to know. to point out 10
You the NEUTRALITY-SUSPICIOUS. under when
Congressman Hay is laboring, and. in
order that you may, if you desire. bring
what ] say to Mr.. Hays attention.
Mr.. Hay refers TO the strong resolution
in favor of the so-called 'Hanna-Payne
shi, subsidy bill which was unanimous
" adopted by your Chamber recently,
and copies of which ] note have been
sent to your senator's and representatives
in Congress. Mr.. Hay states his objec-
tons to and impressions concerning the
hill as follows:
1T will be impossible for me to vote
for this bill which is a bill TO spend
millions Of the peoples money each year
for the purpose of Substituting certain
steamship lines. and which will in effect
prevent all competition in shipbuilding
in this country, the character of the
ships entitled to the subsidies are old
ships. and under its provisions it will
be practically impossible for any new
shipping lines to be created Its purpose
is to foster another great monopoly at
The expense of the people, and, as
Preventative of the people, l could not
possibly support it.
Were Representative Hays under
standing Of the purposes and probable
effects of the passage Of the bin a cor
rect one. then, unquestionably. what he
says is quite true, and the business men
of Richmond, Va, who attended your
chamber Of Commerce meeting, and
unanimously voted for the bill, would
never have so voted.
: But MIR. Hay is wrong, and I shall
crdeavor TO point out wherein his err
rorS occur.
THE BILL EXPLAINED.
]. The terms of the bill distinctly pro-
vide that no American owner Of an
existing vessel desiring to avail himself
OF its benefits may do 50 until he has
had at least . per cent. as much new
tonnage built in the United States as
he desires To secure subsidy for Under
this provision OF the bill Commissioner
Of Navigation Chamberlain, in his 1899
steamships and 10000 tons of sail vessels
will be built in American shipyards. The
bill also proposes to admit 10 American
register foreign vessels owned by Ameri-
can citizens, on condition that their
owners shall build equal tonnage in the
United States The commissioner esti-
mates that 100000 tons of vessels now
under foreign flags would seek adrnis-
sion under this proviso. which would ne
cessitate the building of 100000 tons of
new ships in American shipyards. Thus.
you see. the bill is likely 10 effect the
construction of no less than 4150eo tons
OF new ships in American shipyards
This is certain, unless the owners of all
existing tonnage seeking to benefit under
the bill do build new tonnage in the
United States they cannot obtain a dol
lar from The government 1t IS not de-
sired that any .'old ships that are not
clasesd as being Al shall secure any bene-
lit under this bill. and the bill, when it
passes have no doubt. will contain that
proriso.
9. The bill provides that not more than
nine millions OF dollars shall be eNpend-
cd under the bill in any one year II
further provides that when the number
of ships operating under its provisions
earn more III the aggregate than that
amount. according 10 the rates as fixed
in the bill. then the payment to be made
10 each shall be reduced in amount suffi-
cient to prevent the total expenditure
from exceeding nine million dollars. This,
you Will perceive. absolutely makes any
monopoly Of a route. or 4 trade. an
impossibility. and, besides. it prevents
favoritisrl being shown TO any particular
class OF vessels, or to any particular line.
For instance. will take the ships
of the International Navigation Com
pany for illustration. they being the only
ships under our flag in the North AT
lantic trade and il having been alleged
by the eaemies OF the bill that this line
viii receive exceptional fayors If the
bin passes. Assuming this TO be true
which il is not-then what? Any per-
son, or aggregation OF persons, who de-
sire TO, may build new line and paral-
lei the ships of this company. If they
build as many ships OF the same size and
speed they viii obtain from the gov
ernment precisely the same cornpensa-
ton the other line receives. This adj
vantage IL open TO any Others, at any
time during a period of ton years
THE EFFECT
The effect OF this will be- in my
Judgment. as follows: AS u result of
this operation OF the BILL If passed in
Substantially its present FORM there will
be economics introduced into the build
ing OF ships in our ship yards. and the
maximum Of efficiency IN the placing OF
workingrnen on the different parts of
the work that will have 4 tendency to
constantly decrease the cost OF ships In
the United States, and in time enable our
builders 10 build as cheaply as foreign
builders can. This reduction IN cost will
tncitc CAPITALISTS 10 put their money into
ships. Notwithstanding that there will
undoubtedly. by that time have occurred
a reduction in the compensation due to
fo<A - a.. H.
,ssls to have absorbed the maximum