The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-02
SHIP SUBSIDIES.
Argument i'm support of the Bill Now
Before the Senate.

To the Editor Of the indianapolis Journal:
In order to prejudice the public against
the shipping bill some of our newspapers
attack il in very unfair way One paper
says: THE ship subsidy bin is not sub
SHY bill at all. but bill for the relief of
Rockefeller, Griscem, the Standard OIL
Company, the Standard Oil Bank and var
icus other interests that live off the peo-
pie" Again, it refers TO the bill as THE
scheme which Mark Hanna is trying to
force on the country" The Standard OIL
Company canot be benefited by the bill be-
cause tank steamers carrying oil in bulk
are, on commercial principles, excluded
from receiving benefits Mr. Hanna's in
tcrest in shipping is confined TO the lakes
and he could not become beneficiary I'M
less he should in the future invest in ocean
vessels or shipyards. The bill now be-
fore the Senate has been indorsed by over
two hundred commercial organizations. 1T
has been recommended by the President,
the secretary of the treasury and largely
by the press OF the country. Its purpose
is to build I'D great American merchant
shipping that will facilitate the exporta-
ton and sale of our surplus products and
to establish vast shipbuilding industry.
About 60 per cent. of our exports arc
bulky agricultural products and any sys-
tenn that will stimulate exports by carrying
these products direct 10 the ports where
they will be consumed at lower ocean
freights will be "a great benefit to all. The
Senate committee on commerce estimates
the saving TO Americans in freight will
amount to $25,00O,O0o annually, or three
times as much as the subsidies. At pres
ent over 80 per cent. of our commerce is
carried in foreign vessels at an expense
OF nearly $200. 100000 annually. Forty years
ago We ha0 three times the shipping en-
gagged in foreign commerce that we now
have. This decline is due principally to
the greater cost of constructing vessels In
this country and to the lack of govern
mental support. European governments;
grant subsidies amounting to $40 O00. 600 an
nually, which are paid to 274 vessels, owned
by foreign corporations. In addition 10
this the United States government pays
100000 yearly to foreign vessels for carry
Ing our mails. The United States expends
less than one million dollars annually To
American ships. Last year little Japan
paid subsidies to her merchant shipping
amounting TO s., 492. 600, and she now has
larger tonnage in foreign trade than we
have. The German Emperor has expressed
an ambition to make his country at least
equal to Britain a maritime power, and
by Judicious governmental support Ger
will handle all her own freight Last
January there was launched at the Vul-
can yard, Stettin, vessel for the Ham
6urgAmerisaT bs COMPANY ~, called the
probably is the finest vessel afloat, and
represents the elimination of the art o.
shipbuilding in Germany. At the launch
ing of this vessel the imperial minister OF
foreign 2ffairs. Won Buelow, made a speech
ir which he substantially said that Ger
many's great progress was due to the con-
solidation of the empire, the reawakening
of national Industries, aspirations for for
government of shipbuilding under the Ger
| man flag.
1t is contended that because our ship
yards are operating to their full capacity
| there is no reason for asking for govern
| ment encouragement. True, they arc
| crowded with work, but 1t Is nearly all fol
year the new tonnage built on the great
lakes vas equal to that built on both
coasts, exclusive of government work. Steel
shipbuilding is a comparatively new in
dustry in this country, and our present
shipyard capacity is only one-tenth of that
| of Great Britain. 1t Is claimed that the
American line and other existing own
| ers of fast vessels will become the prin-
! cipal beneficiaries of the bill. Owners OF
| vessels are required to give bona to build
In this country at least Is per cent. add.
| tonal tonnage before they can draw one
| collar of subsidy while special privileges
| are offered TO citizens not ship owners
| who desire to enter the business.
The bill also restricts the collective
amount that may be drawn by twenty-kno1
vessels to 100000 annually. If it is de-
| sired to give less encouragement to fas
vessels the bill can be easily amended tS
pay a greater portion of the subsidy to
| slow vessels. 1t must not be forgotten
| that We now pay 81. 100000 yearly for car
| rying the mails which hereafter would
| be carried free. The annual expenditure
| under the bill are limited to s9,000.000, bu
| 81, 400 900 should be deducted from this
making the total annual expense but $780,
| 0C0 Some years must elapse before ever
| this maximum payment could be attained
| and before the subsidy payments coult
| amount to even $4,000, 600 there must b,
| $40 0O0, 900 worth of new shipping contracted
| for. This would require the investment o.
! at least S0,0 600 private capital In new
/ shipyards and the employment of man,
| thousands of workmen. The bill provides
| that vessels receiving compensation shall
| be off1cered by citizens of this country an,
| that % per cent. of the crews shall b.
| Americans. Also that for each 1000 ton
| capacity one American boy must be carries
| as member of the crew and taught sea
manship. engineering or other maritim
| knowledge.
Anticipating the passage of the act, sew
| eral lines of vessels are already projecte'
to run to Europe and the orient, on
line to Russia via the Black Sea an
| Odessa, the present line to Australia to b
doubled, and two new lines to Soutl
| America
The passage of the shipping bill shoul
| logically precede any bill for the construc
ton of ar isthmian canal We will no
| reed the canal until We build UP a mer
| chant marine. The construction of tn
Nicaraguan canal would require the taxa
| ton of the people of this country to tn
extent of probably $3o0000.0o0 to be ex
pended in a foreign country TO foreig
workmen principally for the use of foreg
vessels. JOHN e. DEAN.
Indianapolis, Dec. 81.