The times. [volume] (Washington [D.C.]) 1897-1901, 1900-02-27
THE SHIP SUBSIDY BILL
Mr.. Frye'S Statement Concerning
accent Notifications.
The Period of Compensation for Nes-
sells Now Completed Limited to Ten
Years-Expresses His Belief That
the Passage of the Bill Wal Ad-
vance American Shipping Interests

The Hanna Payne Ship Subsidy bill, as
reported to the Senate yesterday by the
Committee on Commerce, is modified by
several amendments, which have resulted
from the hearings that have recently been
! held. The measure was originally intro
dueed in the Senate by Mr.. Frye. the
President pro tempore, on December 6, and
in response to request that he explain its
principal provisions he issued the fol-
lowing statement yesterday:
Substantial notifications have recently
been made in the bill, with four distinct
purposes in view, namely: l. To particular
ly encourage the building of new ships in
the United States. 2. To induce our citi-
zens to construct freight carriers. 3. To
attract present and prospective American
ship owners to the exceptional oDp0rtuni-
ties upon the Pacific for the development
OF American trade. 4. To compel vessels
to carry at least half cargoes each time
they leave the United States on a foreign
voyage. their compensation being reduced
in proportion to the extent that they fail
to carry such cargoes.
The bill. as it now stands. limits the
period of compensation to ten years for
vessels now completed, while doubling that
period for vessels hereafter to be con-
structed. This gives owners of existing
vessels chance to share in the benefits
of the bill just long enough to enable them
to keep up with the progress of the times,
and the needs of our growing commerce
by themselves, taking the lead in new con-
structions. The object is net unduly to
favor present owners, but to encourage
those weo have had the pluck to stick
to the business through all these years
of adve-sity to apply their experience and
courage to its rapid expansion. To up
build our merchant marine we must recess
sarily depend upon the ability, experience.
and resource OF those of our citizens now
engaged in the foreign trade. It is de-
sired to encourage in every way possible
investment on the part of others now un-
familiar with shipping. and it is believed
that this can best be accomplished by max
ing possible the success of those now en-
gagged in the business
by Withdrawing compensation from YES
sells now In existence at the end Of ten
years, and continuing 1t for twenty years
to those hereafter built, 1t is expected
that the most modern and economical yes
sells, and only those, will be found Gesira-
Bile for our foreign trade. This will also
ensure the carrying OF our exports at the
minimum Of cost and the maximum of
efficiency.
Comparative Benefits.
Without going into the figures OF the
compensation in detail, 1t is enough to say
that the compensation provided will no
more than make good the difference in the
cost and In the operation of American
ships in competition with foreign ships. a
IN
upon the annual payment to vessels of
over twenty knots speed. l look for such
fierce rivalry between American and for
eign vessels. the former striving to OBJ
tain and the latter trying to hold the busi-
ness, as to materially reduce rates OF
ocean transportation for years to come,
and to fix permanently a much lower rate
than at present through the economics in
construction and operation that competi-
tion will force upon all concerned.
The provisions of the bill favor freight
carriers at every point rather than the
fleetest and most powerful ships. This is
in response TO very general sentiment
that the commercial war upon which We
have entered, and which Will be larger in
the future, demands the former in prefer
ence to the latter.
at is recognized that the more rapid
expansion of our export trade will be In |
that carried on with the Orient. This will
especially stimulate new lines of steam
ships from our Pacific ports to Asiatic |
countries. To make it particularly attrac- |
tive, and also possible, for our citizens to !
develop that trade with Amer .can- built |
ships, 80 per cent of the maximum, COM |
pensation Is reserved for our vessels upon |
the Pacific, while, of course, there is no |
limit to the extent that they may partici- |
pate in the other 20 per cent by increasing |
the number of ships in our foreign trade. |
ships Under Foreign Flags.
During the last thirty-fve years, while !
American ships have been more expensive |
to build and more expensive to run than |
foreign vessels, certain of our citizens nave |
found it necessary to go abroad for their |
ships. and sail them under foreign flags in |
order to compete on terms of equality with |
their rivals. which course, under proper |
Government protection during that time.
would have been quite unnecessary. 1t is |
estimated that some 200, 600 tons of vessels |
of this character of ownership are now in |
existence, while about 100 0G0 tons of ships
are now being constructed abroad for their
owners. In order not to discriminate
against these citizens. now controlling a
trade capable OF great future expansion.
and in order to induce them to expand
their trade with American built ships pro-
vision Is made for the admission to Ameri- |
can registry of foreign built vessels owned
by American citizens, on condition that
they have tonnage built hereafter In
American shipyards equal to that admitted
to our register Compensation is withheld
until this new tonnage is built, and a for
felt of $40 per ton required il it is not
built This foregn-built tonnage that is
admitted receives only one-half the amount
of compensation paid to American built
vessels, and contracts are restricted to ten
years in respect of existing vessels. All
such vessels and their equivalent tonnage |
to be built in the United States are to be
excluded from any participation in our
coastwise trade.
Il should have said that compensation
Is also withheld from owners of existing
American vessels until they have had
built In American shipyards tonnage
equal TO % per cent of that for which
compensation IS asked.
Carg0es to he Carried.
"one OF the most important changes is
that which compels vessels under contract
to carry cargoes equal TO at least one-half
their gross tonnage on their outward voy-
ages. 1t had been thought that such a