The Providence news. (Providence [R.I.]) 1891-1906, 1900-05-14
OPPOSES SHIP
SUBSIDY BILL.
Minority Report Filed In House
Of Representatives.
WILL NOT EFFECT PURPOSE.
Only 4 Few, ths Minority Declares, viii Be
Benefited BY The Measure
TO LOWER GENERAL FREIGHT RATES.
An UnIimIisd Subsidy VIII Be Necessary -lmpos-
sIhIs for AnI One NaiIon 10 Reduce Materially
Ocean Rsbs BY Subsidy.
Only 4 Few, ths Minority Declares, viii Be
Benefited BY The Measure.
TO LOWER GENERAL FREIGHT RATES


report on the Shipping Subsidy bill. OPP
posing that measure has been filed in
the House of Representatives by the
majority of the Democratic members OF
the committee on merchant marine and
fisheries. Representative Fitzgerald of
Massachusetts, drew the report which
was signed also by Representatives
Devries, California: DAILY, New Jersey,
and Speight, Mississippi. Three other
Democrats of the committee, Messrs.
Chanler Small and Ramsdell have
heretofore submitted their views up
holding the general principle OF gov
ernment aid 10 the merchant marine,
but pointing ont defects in the bill The
present report, therefore, represents
the opposition to the measure. both in
principle and in detail. In the main, IL
is an argument against government
subsidies, ad asserts that most of the
proposed ssOOo.000 subsidy will go TO a
few favored concerns without building
up American shipping in general or en-
couraging American exports.
The report quotes u recent utter
ance OF President Mckinley on the re-
markable increase of our ship-buildng,
and says in part:
WHY TAX THE COUNTRY?
Our foreign trade. then, is increased
with wonderful rapidity, and our ship
building industry is remarkably pros
porous without subsidy. Why, then,
should the whole country be taxed to
provide gratuities for industries which
are now prosperous, and which have
every prospect OF continuing TO be more
and more prosperous?
Even IL our foreign commerce were
In declining rather than in a fairly
prosperous condition. il is impossible
that the present bill would give relief,
and for the following reasons:
Because subsidies are graded accord
ing 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 for ordinary freight steamers which
carry so or 80 per cent. OF our exports.
The subsidy, therefore, if 1t affects
rates at all. will affect passenger rather
than freight rates.
'As only about s per cent. of the total
tonnage of the worlds shipping is SUBJ
sidized. and as nearly all of the present
SUBSIDY goes TO passenger and mail
steamers, the hopelessness of trying by
subsidy 10 lower freight rates and in
crease commerce IL apparent.
Unlimited subsidy would be neces-
sary TO lower general freight rates. IL
any one country attempts by subsidy 10
secure lower rates. the subsidy must
go to all ships carrying freights. Other
wise, the moment the few subsidized
ships lower rates for one country. the
unsubsidized ships ttramp steamers
etc..) will withdraw to other service.
and rates for this particular country
will go back 10 the worlds level Hence.
II is practically beyond any one country
10 materially reduce by subsidy its
ocean freight rates. and in this way
to increase Its foreign trade.
The bin does not sufficiently pro-
vide for subsidies based upon the
amount OF freight carried, nor does
II require any decrease in freight
rates.
RATES NOT LOWERED.
1T cannot be shown. from the his
tory of subsidies. that they ever mate
rally lowered freight rates or in
creased the commerce of the countries
granting them. Trade conditions and
trade theories fix the rates which
shippers will pay and which ship own
ers can get.
Neither does the history of subs-
dies show that any country has ever
built up its merchant 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. A
"By the time these few interests
bring in their foreign-owned ships and
get their ships now being built into the
subsidy race. the $9000,000 limit Will
undoubtedly be reached. Hence il will
be TO their interest TO combine TO stop
competition and prevent their subsidy
rates and profits from declining. We
believe that such h combination would
be completed soon after the passage
OF this bill. tf
I'VE place no faith in the antitrust
amendment. All the Federal and State
anu-trust laws now i'm existence have
proven futile. and have not lessened
the rapid growth OF trusts. We see no