New-York tribune., 1902-01-18
NEW SHIP SUBSIDY BILL.
SENATOR FRYE SUMMARIZES ITS PRO
VISIONS
FAVORABLE REPORT ORDERED BY THE
SENATE COMMITTEE ON COMMERCE.

SENATE COMMITTEE ON COMMERCE.
Washington Jan. 1.-THE Senate Committee
On commerce to-day authorized a favorable re-
port or Senator Frye's Ship Subsidy bill The
report will be made by Senator FRYE The
democratic members of the committee voted
against reporting the bill. They also voted SOL
IDLY for a motion offered by Senator Mallory to
strlke out the general subsidy provision. The
committee made several amendments to the bill.
Inc most important Were: Allowing mail carry
| ing vessels under the bill to be either iron or
Steel instead of steel only as originally provid-
| co. ana another reducing to one thousand gross
'esIslereu tons the vessels receiving a bounty
under the bill
Inc report prepared by Senator Frye was read
10 the committee. It says that the purpose of
| the Dill is to establish the maritime supremacy
oI the United States in trade with Asia and in
J the Guf OF Mexico and the Caribbean Sea. IN
| establish securely trade between the United
! states and South America and to give the
United States respectable representation on
the North Atlantic. The statement is made that
all these results will be accomplished within
ten years The report also asserts that the bill
| VIII so extend shipbudng as to transfer the
centre OF the industry from abroad TO the United
states as the centres Of other industries re-
| Gently have been transferred. and also that IL
VIII give TO the United States a measure Of
maritime independence corresponding to our in
dustrial and agricultural independence
AMERICAN OCEAN MAIL SERVICE.
Senator Frye furnished the following summary
OF the report:
The establishment of this complete American
ocean mail service, involving much shipbuild-
ing, Will require several years. 1t will render
| the United States independent of foreign
powers for Its ocean mail service as is Great
britain. ~ The cost of the American service by
/ ho 4 Tl,a
cost OF the British and colonial service by Brit
! lsh mail steamers is $4.I0O,OO0. Receipts from
ocean postage by the United States are now es-
| tlmated at S}.OO0.O0O. The annual deficit under
| the new American system proposed. including
minor services, will be about $2.0O0,OOO. The
annual deficit under the British colonial system
Is S2,lSS.OOO. The postal subsidy provisions en-
| apie the Postmaster General 10 establish
American ocean mail system superior TO the
| systems Of Great Britain. France and Germany.
The American ocean mail system outlined
contemplates on the Pacific weekly mail service
| 10 Hawaii. the Philippines Japan. China and
hong Kong. and fortnightly service to PagO
Pago' New-Zealand and Australia. The maxi
mum cost would be 81, ,335 900.
On the Atlantic the bill contemplates semi
weekly mail services to Jamaica, Havana and
Europe, weekly to Mexico. once in ten days to
venezuela and fortnighty TO Brazil, at maxi
mum cost of $2,36J ONU
The report compares in detail American ser
vices proposed with British services. and as
serts that the bill will revolutionze in American
favor against the Suez route the worlds
ocean mail connections with China and Japan,
give the United States forty-two auxiliary mer-
chant cruisers, compared with Great Brtain's
fifty.
GENERAL SUBSIDY PROVISIONS.
The second part of the report deals with the
general subsidy 10 all American vessels. steam
and sail, except mail steamers. II quotes Presi-
dent Roosevelt's message showing that the
cost OF building American ships is greater than
the cost of building ships abroad; that American
wages on shipbOard are higher. and that the
the government should remedy these inequali-
ties. Discriminating duties export bounties and
subsidies based on export Cargoes are in viola
tion OF our International obligations, so direct
subsidies is the only practical method The
subsidy proposed is not naked bounty, for II
Is based on public services TO be rendered In
return. .
Americans have absolute free trade In foreign
going ships. shipbuilders trust is possible
under the bill Shipbuilders San import
free OF duty materials for ships for foreign trade
combination 10 raise prices OF materials
is praCtica BILE. II an American shipoWner viii
build his vessel In the United States. employing
home labor, employing American officers and
crews, performing certain services for the Amer
lean government and using the vessel 10 promote
American commerce. he will be paid subsidy
sufficient 10 put him on an equality with the
foreign shpowner. employing foreign labor and
serving a foreign government.
The average cost of building ocean steamers
mainly for cargo is S102 a ton in the United
States and $40 in Great Britain Average month
ly wages on ocean steamers mainly for cargo
are: American, $50: British. S26; German and
Scandinavian. S1T. The general subsidies pro-
posed equalize American and foreign costs on
these bases.
EXPECTED TO PROMOTE SHIPBUHDING.
The bill will promote the building of new yes
sells OF large carrying capacity which promote
export trade at low freight rates. Combined
with our geographical position. II gives special
advantages to American vessels in the Pacihc
trade.
Based on actual navigation of American yes
sells in foreign trade in 1909 the subsidies pro-
posed would amount TO S1.oI2epo, divided as
follows: Steam excluding mail vessels). S'"9-
600; sail. S5l30tD Geographically: Atlantic
Ocean $4,000: Pacific S42IOOO; square rgged
ships on both oceans Sl6l,0D.
Full compliance with all requirements for the
DILL would fix the initial expenditures at be-
tween SSO0O00 and 100000
Under the general subsidy increase IN ex-
penditure depends increase In shipbuildlng-
The completion of POO 900 tons OF ocean steam
ers for foreign trade in one year involving Sl5,-
600 600 in subsidies will place the United states
in advance of Germany a shipbuilding nation
The deep sea fisheries bounty is 10 encourage
an industry which from the battle of Lexington
TO the battle of Santiago. has furnished more
men nroportionately for the national detenCe
than any other American industry. The annual
expenditure is estimated at SlI3pn This
amount offsets S1600 900 paid TO promote tsheries
nv Canada which uses for the purpose the an
nHaI interest on So 50pOO paid by the United
states TO Canada under the Halifax award. IN
1873. For seventy years the United states paiu
bounties to deep sea fishermen:
The President Of the United states has general
sunervision of regulations to enforce the act