The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1901-01-29
SUBSIDY GREATLY NEEDED.


In a recent interview with a repre-
sentative OF the New York Commercial,
Charles H. Treat. collector Of internal
revenue for the second district OF New
York, gave the following conclusive ar
sument in favor Of the pending ship
subsidy bill. Mr.. Treat said;
Il have always had a deep interest
in the upbuilding OF the American mer-
chant marine. was born in view Of
Shipyards. and as a boy the frames Of
ships were the playhouse Of myself and
companions. know in the days before
the civil war what prosperity our
prominence in the carrying trade
brought to my state and to the country
at large The shipbuilders and owners
made a terrific struggle before they
succumbed to the competition Of iron
ships propelled by steam.
The small schooners Of $50 tons gave
way to those Of 500 and 1000 and 1900
tons, hoping that increased capacity
would so diminish expenses that prof
liable competition might still be main-
tanned. Shipbuilders who tried to COM
pete with the foreign trade. one by one
retired, as the fierce competition with
low freights, annual depreciation of
property and high rates Of insurance
gradually wiped out their capital.
"It was only firms of large resources,
like the Sewalls, the Houghtons. the
Flints and the O'Briens, OF Maine. that
Aad an American ship building on the
stocks. The Nickersons, Of East Bos-
ton, went out Of shipbuilding because
the profits in building subsidized rail-
roads were far in excess Of anything
that could be had from the business Of
ship owning.
1.-The rates of money in England were
so much lower, owing to the plethora
Of. capital, that they were willing TO
take a. smaller return on their ships
than We could afford, as our interest
account here was so much greater. In
fact, for many years after the civil
war the decline in American shipping
was largely owing TO the decadence Of
American profits
Ship owners have often said TO me:
When our capital accumulates to ex-
cess in our country and rates Of in
terest get as low as those Of England,
then it will be time enough for US to !
contest the supremacy Of the carrying !
trade; but now other investments are !
too tempting for US 10 be martyrs to
sentiment. Since that time not only
has abundance OF capital at low rates |
against us, but the increase Of
subsidies Of Great Britain, Germany
and France has made the entrance !
into the field of commerce more discour- !
aging and hazardous. The American
people at large do not seem to realize
that the early growth Of our merchant |
marine was due to protection through |
duties; that all cargoes
imported in American bottoms had q
rebate Of tariff duties.
'"The old argument that We should .
be content as producers and let the
carrying be done by other nations who
were satisfied with less profit has ceas-
ed TO be applicable, because the vast
amounts of money seeking investment
even in the rast year in the securities
of foreign nations Of over $lOo.OOO,OO,
proves conclusively that we must look
for every avenue of profitable employ
ment, even at small returns. to keep in
use the great and growing accumu-
lations Of national wealth.
Money today is 2 to 8 per cent in
Wall street, while the Bank of Eng
and rate is per cent. The two per
cent bonds of the United States are Z
Der cent premium. This proves the
new conditions; we must be content |