The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-01-18
SHIP SUBSIDY BILL
MIR. FRTE'S MEASURE GETS FA-
VORABLE REPORT.
DEMOCRATS OPPOSED IT.
SENATOR FRYE GIVES OUT A
STATEMENT.

He Estimates the Total Cost of the
Proposed Mail Service at $4,7OO,-
600 with AN Annual Dehcit OF
About $2.OOO, O,OOO-Ocean Mail Fa-
ciIities Would he Greatly Inn
prOVed-AccOrdinE to MIR. Frye's
Figures the Bounties to Vessels
viii Not he Very Large.
Washington, Jan. 1.-THE Senate
Committee ON Commerce to-day au-
thorized a favorable report on Senator
Frye's ship-subsidy bill. The report
will be made by Senator Frye.
The Democrat members of the COM
mittee voted against reporting the
bill. They also voted solidly for a
motion offered by Senator Mallory TO
strike out the general subsidy provision
of the bill. The committee made sew
eral amendments to the bill. The
most important were:
Allowing mail-carrying vessels under
the bill to be either iron or steel in
stead of steel only, as originally pro-
vided, and another reducing to one
thousand gross registered tons the ves-
sells receiving a bounty under the bill.
Senator Frye furnishes the following
summary of the report:
"The establishment of this complete
American ocean mail service, involv-
ing much shipbuilding, will require
several years. 1t will render the
United States as independent of for
eign Powers for it's ocean mail service
as is Great Britain. The cost of the
American services by American steam
ers will be $47O0, 900; the cost of the
British and colonial service by British
mail steamers is S4.700,000. Receipts
from ocean postage by the United
States are now estimated at 100000.
"The annual deficit under the new
American system proposed. including
minor services, will be about $1,000 900.
The annual deficit under the British
colonial system is 81. 1888 900.
THE postal subsidy provisions ena-
BILE the Postmaster General to estab-
lish an American ocean mail system
superior to the systems of Great Bri-
tain, France and Germany.
THE American ocean mail system
outlined contemplates on the Pacific
weekly mail services to Hawaii, the
Philippines, Japan, China and, Hong
Kong, and a fortnightly service to
Pago- Pago, New Zealand, Australia
The maximum cost would be 1896. 900
"On the Atlantic the bill contem-
plates semi weekly mail services to
Jamaica. Havana, and Europe weekly
to Mexico, once in ten days to Vene-
zuela and fortnightly to Brazil, at a
maximum cost Of 1896. 900.
ut will give the United States forty
two auxiliary merchant cruisers COM
pared with Great Britains fifty.
Subsidies to other Vessels.
1.-THE second part of the report deals
with the general subsidy to all Amer
ican vessels, steam and sail. except
mail steamers. 1t quotes President
1loosevelt's message, showing that
the cost of building American ships is
greater than abroad, that Amer
lean wages on ship-board are higher
and that the government should rem
edy these inequalities. Discriminating
duties, export bounties and subsidies
based on export cargoes are in viola
tion of our international obligations,
so direct subsidy is the only practical
method. The subsidy proposed is not
a naked bounty, for It is based on pub
lie services to be rendered in return.
Americans have absolute free trade
in foreign-going ships. so no ship
builders trust is possible under the
bill. Shipbuilders can import now, free
of duty, materials for ships for foreign
trade, so no combination to raise prices
of materials is practicable.
Argument by Figures.
THE average cost of building ocean
steamers, mainly for cargo. is $102 per
ton in the United States and $76 in
Great Britain. Average monthly wages
on ocean steamers mainly for cargo
are: American, 1886: British $26: Ger
man and Scandinavian, $l7. The gen.
eral subsidies proposed equalize Ameri-
can and foreign costs on these bases.
BASED on actual navigation of Amer
lean vessels in foreign trade i'm 1900,
the subsidies proposed would amount
to $1.072, 900 divided as follows Steam
(excluding mail vessels), $4,000: sail,
$513,00 Geographically; Atlantic
ocean. $444000; Pacific ocean, $467, 900:
square rigged ships on both oceans,
s161 900.
Full compliance with all require
ments for the bill would fix the initial
expenditures at between 100000 and
5000. 900.
"Under the general subsidy increase
in expenditure depends on increase in
ship building. The completion of 200,-
900 tons of ocean steamers for foreign
trade in one year. involving 81 200, 900
in subsidies. will place the United
States in advance of Germany as a
shin building nation"