The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-02
THE ship SUBSIDY BILL
Report of the Senate Committee on
Commerce Completed.
The Measure Commended - Some
Prophecies ms to Its Effect If Pass
cd-Dependcnce on Foreign ship
ping for Our Ocean Carrying De-
pIorcJ - Rates of Compensation.

The report of the Senate Commerce Com
mittee in favor OF the Ship Subsidy bill
will be made public today. Il was not sub
mitted TO the Senate when the bill was re
ported last week owing to the fact that i
was intended to cover every important de
tail of the measure. and some of the re
cent amendments had not then been incor
poTated in il
The report begins by asserting the valu,
of national merchant marine. explain,
and deplores our almost entire dependenc,
upon foreign shipping for our ocean car
rying. suggests the danger of rclianc,
upon the merchant ships of other nation!
which may become involved in war, tn,
possible complete exclusion of American
exports from their regular foreign mar
kets in such a contingency, and points ou
that the wholesale transfer of the tonnage
of a belligerent nation to a neutral tias
would unQuestionably involve such ship
ping in difficulties, seizures, and deten-
tions.
The Brtish-Boer war. the report says
has materially reduced our means of trans
portation and embarrassed our ocean mai
service. Cur reliance upon foreign YES
with Spain is referred to. and the broad
ground is taken that under those sections
of the Constitution which empower Con
gress TO provide for a common defence snC
general welfare is found the highest au-
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 1868 is
demonstrated in table which is included
in the report. and which shows the amount
of exports and imports in American and
foreign vessels for each decade from 1863
to 1899. In no other line OF industrial ac-
tivity it 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 expending annually
S26. .oo0, ,0a0 on their national shipping. The
United States during the last year ex-
pended only $99S,211 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 as compared with foreign
ships, and 3. Causes based on foreign leg
isiative encouragement. The suggestion
that this situation may be overcome by
the free admission of foreign-built ships to
American register is met by pointing out
that II such admission were unconditional
IL would result in destroying existing
American shipyards on the Atlantic and
Pacific Coasts.
AS vessels can be built cheaper abroad
than in the United States, owing to lower
wages there as demonstrated by the tes-
timony taken by the committee. the free
admission Of foreign ships would prevent
any ships for the foreign trade from being
constructed in the shipyards of the United
States, unless wages were reduced TO the
foreign level Hence the free adr ission of
foreign ships, the report says. means the
destruction Of the American shipbuild-
ing or else wholesale reduction Of wages
in American shipyards and in all the allied
industries connected with shipbuilding.
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.
Enect OF the Bill If Passed.
All competent authorities, the report
states, agree that this bill, if enacted, will
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 ves-
sells and their foreign rivals for our for
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 it is esti-
mated, the earnings of which approximate
s175. .00o. 600. The passage of this bill, it
is claimed. would probably effect a redue-
tion of $25.ooo0oo 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
now in our foreign trade.
1t is pointed out in answer to the sug-
gestion that has been made by the unin-
formed, that materials for the construction
OF vessels for our foreign trade are now ad-
mltted free Of duty.
The report says:
I'm view of these considerations the
committee believes that Senate bill No. 727.
introduced by Mr.. Frye with the amend
ments proposed by this committee, is the
only feasible measure at this time to pro-
mote American shipping. and that II con-
tains the most successful features OF legis-
lstion now employed by foreign maritime
nations adapted to our needs and condi-
tions."
The maximum annual expenditures are
fxed al $4,000 COO in the bill. About
500. 600 is now being paid to American
alps under normal conditions for carrying
UT mails. q sum which should be deducted
rom the additional expense Of the opera
ion OF this bill About 400. 900 additional
.ons Of new shipping. costing approximate
iy $40 600. 600. and occupying several years
in its construction, would have to be built
in the United States II this bill is passed
before the maximum expenditure of 50 0O0,- |
600 could be reached.
Rates of Compensation.
The rates OF compensation are explained
in detail. One and one-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 !
from the United States. for the first and |
the last /. 500 miles sailed; l 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 II is made |
clear that this sum barely offsets the higher |
cost of constructing American vessels and |
the higher cost of their operation The |
elements on which this difference as 10 cnst