The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-05-14
MILLIONS OF DOLLARS
FOR A Favored FEW
Democratic Minority Of House Committee Exposes
Scheme Of the Shipping Subsidy Bill.
Measure Proposed Will Play Into Hands of TruStS-Drain
Treasury of 100000 Annually.

Washington, May 13.-The minority re-
art on the shipping subsidy BILL OPP
pSAing that measure, has been filed in
.tha house by the majority of the mem
bers of the Democratic minority OF the
committee on merchant marine and
fisheries. Representative Fitzgerald of
Massachusetts drew the report. which
was signed also by Representatives Dew
ries OF California, Daiy OF New Jersey
and Speight Of Mississippi, Three other
Democrats of the cOmmittee-MeSSrs
Chandler. Small and Ransdell-have
heretofore submitted their views, up
holding the general principle OF govern
ment aid 10 the merchant marine, but
pointing out defects in the bill The
present report therefore, represents the
opposition to the measure, both IN prln-
clple and in detail.
IN the main il is an argument against
government subsidies and asserts that
most OF the proposed $9,O0O,O0O subsidy
viii go to a few favored concerns with
out building up American shipping IN
general or encouraging American ex-
ports.
The report quotes a recent utterance OF
President Mckinley on the remarkable IL
crease of or ship building and says, IN
part:
our foreign trade, then, is increasing
win wonderful raptd1ty and our snip
building industry is remarkably prosper
oHs without subsidy. Why then should
the whole country he taxed to provide
Il
prosperous and which have every pros
pect of continuing to be more and more
prosperous?
Arguments Against Subsidies.
Even if our foreign commerce We're in
a declining rather than in a fairly pros
porous condition, it is improbable that
the present bill would give any relief,
and Tor 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
er which carries but little cargo, as tor
ordinary freight steamers, which carry
so to 80 per cent OF Dur exports. The
subsidy. therefore, If IL affects rates a.
all, viii affect passenger rather than
freight rates.
AS only about per cent OF the total
tonnage OF the worlds shipping is sub
sidized and as nearly all OF the present
subsidy goes TO passenger and mail steam
erS, the hODet3sSneSs o. trying by sub
sidy TO lower freight rates and increase
commerce IS apparent unlimited SUBSIDY
would be necessary - lower general
freight rates. Il any one country at
tempts by Sub-tdy to secure lower rates,
the subsiey. must 20 TO all ships carrying
freights. Otherwise the moment the few
subsidized ships lower rates for one coun-
try the unSubsic1zed ships tramp steam
ers. etc) viii withdraw 10 other service
and rates for this particular country viii
so back to the world s level Hence, Il
is practically beyond the ability OF any
one country TO materially reduce DN SUD-
Sidy lSs ocean freight rates and in this
way to increase its foreign trade.
Bill is Deficient.
THE bin does not sufficiently provide
for subsidies based upon amount OF
freight carried, nor does il require any
decrease in freight rates.
1t cannot be shown from the history Of
subsidies that they ever materially low
cred freight rates or increased the com
merce OF the countries granting them.
Trade conditions and not trade theories
fix the rates which shippers will pay and
which ship owners can get.
Neither does the history OF subsidies
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 expert
ence Of France and Italy al@ past eX-
perience Of all other countries which have
given real subsidies.
"As the government could not, under
the proposed law, take American ships
for cruisers or transports on any more
favorable terms than it can now obtain
them, viz, by paying for them all they
are worth, it viii on this score get moth
ing in return for Its lavish subsidy eX-
pendiures. Neither is there anything in
he bill which would provide American
seamen for our national defense.
In no way, then, would this bill pro-
vide for the national defense On the
contrary, by draining 50 O01,0od a year from
our national treasury, il weakens our
national defense by taking money which
might otherwise be invested in more