The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-17
The SUBSIDY HEARINGS
Mr.. Edmunds on the Feasibility OF
Export BOunties.
To Pay n Bonus on Goods shipped
Abroad Would Abrogatc Twenty
tory Advantages The unconstitu-
tionaiity of Glass Legislation.

The shipping subcommittee of the Sem
ate Committee on Commerce met at
O'Clock yesterday afternoon for the purpose
OF further discussion of the Hanna Payne
Ship Subsidy bill Mr. Frye, the Chairman
of the Committee, presided. and opened
the session by reading a statement which,
at his request, had been submitted by for
mer Senator Edmunds, the welllnown le-
gal authority on the constitutionality and
bearing OF our treaties on the export boun-
ty proposition Mr.. Edmunds referred to
twenty five treaties whose terms would OPP
pose such action, among which were the
German Maritime States, Great Britain,
Denmark, Italy, Japan. the Netherlands,
Norway, and Sweden.
1T will be seen" says the statement,
from an examination of the foregoing
named treaties that it is impossible for
the United States to grant export boun-
ties TO their own ships without bringing
into the benefits of the bounty the ships
OF nearly all the commercial and maritime
competitors of the United States, or else
by the abrogation of quite or nearly all
the treaties above referred to.
ITO grant export boupties without abro-
eating the treaties would obviously in
crease the advantage the foreign ships now
have, for an equal increase of payments
TO two competitors always helps the strong
er of the two more than the weaker. Such
a bounty copld not in the least increase
competition and thus lower freight charges.
Again, il is certain that in such case
the American producer and manufacturer
would neither increase their exports nor
get any higher prices for their products
THE supporters OF bounty legislation as
against the bill under consideration. en-
tirely mistake the nature of the bill. 1t
is said that speed and not carrying goods
is the chief test II is not. The very first
clause of rates provides for all vessels
without regard TO speed. Speed is also
provided for by additional compensation
This is important for many reasons.
IF bounty on exports is TO be granted
it must apply to all exports.
"A general bounty on exports. If valid
must necessarily be equal, value for value,
and If large enough to reach and benefit
The original producers and manufacturers,
would be startling in amount Every class
of industry can be benefited in only two
ways: First, by increasing sales Al home
and abroad Second by cheapening the
cost of carriage from the purchaser to the
consumer: and this can in the main only
be done by enlarging the means of trans
portation and thus reducing prices OF car
rage through competition.
Il have condensed these considerations
in respect to bounty and in respect Of the
opposition to the bill by those favoring
the bounty. TO the smallest compass. know
ing that the committee will understand
the points / have suggested and the ex-
tensive range OF considerations that enter
into the subject"
Following the reading OF this report q
short address was delivered by Henry w.
Peabody. of Boston. In the course Of his
remarks Mr.. Peabody stated that he is
not in favor Of the Subsidy bill as ii was
presented to Congress, but that he be-
liered it should be amended. He said |
that he favored an increase in the amount |
allowed for subsidies, which, in the orig |
inal bill is 50 900 600, and that in his opin- |
ion IL the measure with its amendments |
were carried out this country would in a I
few years attain the second place in the |
worlds commerce.
The next speaker was c. A Griscom,
President of the International Navigation
Company. who devoted the most of his re-
marks to a history of the company of
which he is the chief executive, Cor the
purpose OF showing that few vessels of the
likely 10 be built in the future.
]. c. Hanley, President of the National
Cotton Growers Association and executive
agent OF allied agricultural societies, |
stated the views OF his constituents, who,
he said, favor either an export bounty or
a subsidy. and as the report of Mr..
Ejmunds had shown the former to be I'M
practicable their influence would be
thrown in favor Of the latter.
AT the close OF Mr.. Hanley's remarks
Senator Frye made a short address, in
which he stated that the work OF the COM
mittee is practically over, and that the
bill as amended viii soon be reported.
he referred briefly 10 the amendments
hat Hill be recommended, which, he said.
viii provide for a subsidy for ten-knot
vessels and for gradual increase in the
amount allowed for faster vessels. Refer
enee will also be made TO the 81, 600 900
annual limit in the amount OF subsidies.
bougb a definite conclusion has not yet
been reached on this subject
BEFORE THE HOUSE COMMITTEE.