The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-05-14
FALLAcY OF SUBSIDY SYSTEM.
MINORITY DENIES THAT 1T WOULD
BUILD UP COMMERCE.

Little CarGo-BiG Passenger Ships
and Not the Freighters Would Sc
cure the Benefits No Faith in
Antitrust Amendment.
Washington, May 13.-The minority re-
port on the shipping subsidy bill, oppos-
ing that measure, has been filed in the
House of Representatives by the major
ity of the members of the Democratic
minority of the Committee on Merchant
Marine and Fisheries.
Representative Fitzgerald of Massachu-
sets drew the report. which was also
signed by Representatives De Vries of Cal
ifornia, DAILY of New Jersey and Speight
of Mississippi. Three other Democrats of
the committee, Messrs. Chanler, Small and
Ransdell, have heretofore submitted their
views, unfolding the general principle of
government aid to the merchant marine,
but pointing out defects in the bill. The
r present report, therefore, represents the
opposition to the measure, both in prin-
ciple and detail. In the main it is an ar
gument against government subsidies
and asserts that most of the proposed
100000 subsidy will go to few favored
concerns, without building up American
shipping in general, or encouraging Amer
lean exports.
The report quotes a recent utterance of
President Mckinley on the remarkable
increase of our shipbuilding and says in
part:
Would Not Give Relief.
Even if our foreign commerce were
in declining rather than in a fair
ly prosperous condition, it is improb-
able that the present bill would give any
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 steam
ers, which carry but little cargo, as for
ordinary freight steamers, which carry
so or 30 per cent of our exports. The
subsidy, therefore, If it affects rates at
all, will affect passenger, rather than
freight rates.
las only about per cent. of the total
tonnage of the worlds shipping is subsi-
died and as nearly all of the present sub
sidy goes TO passenger and mail steamers
the hopelessness of trying by subsidy to
flower freight rates and increase commerce
is apparent Unlimited subsidy would be
necessary TO lower general freight rates.
If any one country attempts by, subsidy TO
Secure lower rates, the subsidy must go to
all ships carrying freights Otherwise
the moment the few subsidized ships lower
rates for one country the unsubsidized
ships (tramp steamers) will withdraw 20
other service and rates for this particular
country will go back to the worlds level.
Hence it is practically 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.
VIII Not Lower Rates.
1.-THE bill does not sufficiently provide for
subsidies based upon the amount of
freights carried, nor does II require any tn
crease In freight rates. Subsidies never
materially lowered freight rates nor in
creased the commerce of the countries
granting them. Trade conditions and not
trade theories fix the rates. Nor have sub
sides ever built UP any country's mer-
chant marine in this way
As the government could not under the
proposed law. take American ships for
cruisers or transports on any more favor
able terms than 1t can now obtain them
viz. by paying for them all they are worth,
1t will on this score get nothing In return
for its lavish subsidy expenditures. 1t
provides no American seamen, and IN no
way would It provide for the national de-
Tense. On the contrary, by draining 50, 0O0-
900 a year from our treasury, 1t weakens
our national defense by taking mony
which might otherwise bs invested IN more
ships or in transports. provision, ammuni-
by the time the great shipbuildina
ehip-owning and railroad interests bring
in their foreign-owzled ships and get their
ships now being built into the subsidy race
the 100000 limit will undoubtedly be
reached. Hence. 1t will be to their inter
80. g combine . stc.c competition and
consequent decline of profits. We believe
that such combination would be com
pleted soon after the passage of this bill
I'VE place no faith in the antitrust
amendment All the federal and state
antitrust laws now In existence nave
proven futile
Dig Liners Would Benefit.
by this bill, the government is asked
20 pay to the stockholders of a single
steamship line $l5D.000 a year for carry
tng abroad in its foreign first class pas
senger ships. not American products. but
American monied tourists The govern
pnent thus is asked 10 pay, not for the
expectation of American produce but for
the expectation Of American customers"
The report contends against " a reward
10 existing lines"
The objections are summed up as fol-
lows:
THE objects professed in the title are
entirely forgotten in the body Of the bill.
ut is reasonably certain that the most
of the subsidy would go to lines already
established and prosperous.
The ordinary freight steamers, which
carry 80 or 80 per cent. of our agricultural
exports, will get but a fraction of the
amount of subsidy which the passenger
steamers would receive, although the lat
der carry less than 10 per cent. of our ag-
ricultural exports.
Under this bill a ship can run practi-
cally I'm ballast and draw subsidy. We be-
1Ieve that when freight is not promptly
Offered it viii pay certain class of ships
20 run empty rather than to wait for
cargo
This bill would tax all our citizens 10
provide extra profits for favored few in
this favored industry.
THE professions in this bill are insin-
cere and its principals are unsound."