The times., 1900-03-02

The report o. the Senate Commerca lOm-
rnittee in favor OF the Ship Subsidy bill
will be made public today. Il was not sub
mitted 10 the Senate when the bill was re-
ported last week owing to the fact that IL
WAS intended TO cover every important de-
tail Of the measure. and some OF the re-
cent amendments had not then been iucor-
poIated in it.
The report begins by asserting the value
OF a national merchant marine. explains
and deplores our almost entire dependence
upon foreign shipping for our ocean car
rying. suggests the danger Of reliance
upon the merchant ships Of other nations
which may become involved in war. the
possible complete exclusion Of American
exports from their regular foreign mar
kets ia such a contingency. and points out
that the wholesale transfer Of the tonnage
Of a belligerent nation TO neutral flag
would unQuestionably involve such ship
ping iu difficulties seizures, and deten-
tions.
The British-Boer war. the report says
has materially reduced our means Of trans
portation and embarrassed our ocean mail
service. Our reliance upon foreign ves-
sells bought and chartered during our war
with Spain is referred 20, and the broad
ground is taken that under those sections
OF the Constitution which empower Con
gress 10 provide for a common defence and
general welfare is found the highest su-
thority for the promotion OF our merchant
marine.
The Decline in Foreign shipping.
The increase in our shipping OF late
years has been almost wholly for the do
mestic trade and the decline Of our ship
ping in the foreign trade since 1858 is
demonstrated in a table which is included
in the report. and which shows the amount
OF exports and imports ia American and
foreign vessels for each decade from 1863
to 1899 In no other line o. industrial ac-
tivity. il Is pointed out has there been
such a decline in the United States. but
that this decline is not evidence OF an in
herent national weakness is found in the
fact that while practically nothing has
been done TO promote American shipping.
foreign nations are eNpending annually
s2s. .e00. 600 on their national shipping. The
United States during the last year eX-
pended only $9gS,2ll on its national ma
rine.
Three prime reasons are given for the
decline Of the American shipping In the
foreign trade namely l. The greater cost
of building ships in the United States than
elsewhere. 2 The greater cost OF operat-
ing American es compared with foreign
ships. and 3. Causes based on foreign leg
isfstive encouragement. The suggestion I
that this situation may be overcome by I
the free admission of fOreign-built ships TO I
American register is met by pointing out 4
that II such admission were unconditional I
it would result in destroying existing I
American shipyards on the Atlantic and /
Pacific Coasts.
AS vessels can be built cheaper abroad 4
than in the United States, owing 10 lower /
wages there. as demonstrated by the tes- /
timony taken by the committee. the free 4
admission Of foreign ships would prevent I
any ships for the foreign trade from being 4
constructed in the shipyards OF the United 4
States, unless wages were reduced 10 the I
foreign level. Hence the free ad' iission Of
foreign ships, the report SAYS means the
destruction OF the American shipbuild-
ing or else a wholesale reduction OF wages
in American shipyards and in all the allied l
industries connected with shipbunding.
Other policies for building up our ocean
merchant marine. such as discriminating
duties. and export bounties. are carefully
considered and the necessity OF modifying
many existing treaties to put either OF
those policies into force explained. and for
which and other reasons those plans are
deemed impracticable
Eject of the Bill IL Passed.
All competent authorities, the report
states. agree that this bill, if enacted. viii
involve large increase in the American
merchant marine, our chief carriers now
being the British, German, and Norwegian
vessels and the prediction is made that
the competition between American YES
sells and their foreign rivals for our for
eign carrying would effect "a rapid and
abiding reduction in ocean freight rates
and, at first. where profits were greatest
and rates highest
About 4200, 600 gross tons Of ships are
engaged in our foreign carrying il is esti-
mated. the earnings Of which approximate
Sis. .0e0, ,OoO. The passage Of this bill, 1t
is claimed. would probably effect a reduc-
tion of SIS. .O00 600 a year In ocean rates on
American commerce. through the addi-
tionai shipping and the competition that
would be created
Foreign opposition. it is claimed is be-
ing concentrated upon the bill because
foreign shipping interests clearly see that
they will be seriously injured by the re-
placing CT American for the foreign vessels 1
now in our foreign trade. II
II is pointed out. in answer 20 the sug- /
Restion that has been made by the unin- ,
formed, that materials for the construction
OF vessels for our foreign trade are now ad-
mitted free Of duty.
The report says.
In view Of these considerations the 1
committee believes that Senate bill No. z27.
introduced by Mr. Frye. with the amend
ments proposed by this committee. Is the
only feasible measure at this time TO pro- Z
mote American shipping and that g. con-
tains the most successful features Of legis-
lation now employed by foreign maritime /
nations adapted TO our needs and c0ndi-
tions
The maximum annual expenditures are
fixed az 50 900 600 in the bill About
SEQ O09 is now being paid to American /
lips under normal conditions for carrying
UT mails. a sum which should be deducted
rom the additional expense Of the opera
ion OF this bill About 900 900 additional /
-ons cf new shipping costing approximate
iy $40 COO 600. and occupying several years
IN its construction. would have 10 be built I
before the maximum expenditure OF 50 Co.,
600 could be reached
Rates of Compensation
The rates Of compensation are explained
IN detail. One and half cents per gross
ton per hundred miles sailed is to be paid
all vessels. sail and steam, engaging in the
foreign trade distant more than $50 miles J
from the United States, for the first and
the last $50 miles sailed, / cent per gross
ton per hundred miles sailed outward and
inward being paid for the remainder OF
the voyage. Much space is given TO an
explanation OF the actual manner in which
this compensation clause would operate
and the length Of voyages and character Of
trade are carefully considered. Il is made !
clear that this sum barely offsets the higher ,
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