Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-01-18
FRYE'S SUBSIDY BILL
Report Of the Committee Elk.
plains Provisions and Aims
Of the Measure.
1t IL Intended to Develop Trade
With the Foreign Na.
tons.
Frye Says It Will Make America
Foremost Of Maritime
Powers.

senator Frye on me snip SUBSIDY Dill,
on which the senate committee on COM
merce authorized favorable report,
explains the measure quite fully. The
committee made several amendments to
the bill. The most important were: AL
lowing mail-carrying vessels under the
bill to be either iron or steel instead of
steel only, as originally provided, and
reducing to 1000 gross registered tons
the vessels receiving a bounty under the
bill.
The report prepared by Senator Frye
was read to the committee. 1t says that
the purpose OF the bill is to establish the
maritime supremacy of the United
States in trade with Asia and in the
Gulf OF Mexico and the Caribbean; to
establish thoroughly trade between the
United States and South American re-
publics and to give the United States a
respectable representation on the north
Atlantic.
The claim is made that all these re-
cults will be accomplished within ten
years.
The report also asserts that the bill
will so extend ship building as to trans
fer In time from abroad to the United
States the center OF that industry, as the
renters of other industries recently have
been transferred, and also that 1t will
give to the United States a measure OF
maritime independence corresponding
10 It's Industrial and agricultural inde-
pendence.
Senator Frye furnished the press the
following summary Of the report:
"The establishment Of this complete
American ocean mail service, involving
much chip building, will require several
years. It will render the United States
Ms Independent OF foreign powers for Its
ocean mail service as is Great Britain.
The cost OF the American service by
American mail steamers will be "a ,700,-
600: the cost Of the British and colonial
service by British mail steamers is "a
200, 900. Receipts from ocean postage by
the United States are now estimated at
SO, 000, 900. The annual deficit under the
new American system proposed, includ-
ing minor services. will be about $1,000
600. The annual deficit under the Brit
ish colonial system is $2.1ss.o0o.
"The postal subsidy provisions enable
the postmaster general to establish an
American ocean mail system superior to
the systems OF Great Britain. France
and Germany.
1.-THE American ocean mail system
outlined contemplates on the Pacific
weekly mail services to Hawaii. the
Philippines. Japan. China and Hong
Kong, and fortnightly service to Page
Page, New Zealand and Australia. The
maximum cost would be $2s35,ooo.
ION the Atlantic the bill contemplates
semi-weekly mail services to Jamaica,
Havana and Europe. weekly to Mexico.
once in ten days to Venezuela, and fort
nightly to Brazil, at a maximum cost Of
&2.3s5, 900.
1.-THE report compares In detail Amer
loan services proposed with British ser
vices. and asserts that the bill will rev.
olutionize In Americas favor as against
the Suez route the worlds ocean mail
connections with China and Japan and
will affect Australian connections.
1t will give the United States forty
two auxiliary merchant cruisers, COM
pared with Great Britain's fifty.
The second part Of the report deals
with the general subsidy to all Ameri-
can vessels, steam and sail, except mail
steamers. 1t quotes President Roose-
yelt'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 high
er, and that the government should rem
ecy these inequalities. Discriminating
cuties. export bounties and subsidies
based on export cargoes are in violation
OF our international obligations. SO di-
rect subsidies. 1t says. is the only practi-
cal method. The subsidy proposed is not
a naked bounty. for II il based on pub
lie services to be RENDERED In return.
Americans have absolute free trade
in foreign-goinE ships. SO no ship build
ers' trust is possible under the bill Ship
builders can import now free of duty
materials for ships for foreign trade, SO
TO American raise In prices OF materials
ts practicable.
''If an American shipowner will build
Ais vessel In the United States, employ
ing home labor. employing American Of
hcers and crews. performing certain
services for the American government.
and using the vessel to promote Ameri-
can commerce, he will be paid subsidy
sufficient to put him on an equality with
the foreign shipowner, employing for
e.gn labor and serving foreign govern
plent.
THE average cost Of building ocean
steamers. mainly for cargo. is s102 per
ton in the United States and SIS in Great
Britain. Average monthly wages on
ocean steamers mainly for cargo are:
American, $36: British, $26; German and
Scandinavian. ST. The general subsi-
dies proposed equalize American and
foreign costs on these bases
1.-THE bill will promote the building OF
new vessels OF large carrying capacity
which promote export trade at low
freight rates Combined with our geo.
graphical position. 1t gives special adj
vantages to American vessels in the Pa
cif1c trade.
BIASED on actual navigation Of Ameri-
can vessels in foreign trade in 1900 the
subsidies proposed would amount to ST.
o72, OO0 divided as follows: Steam eek
Guiding mail vessels). $4,000; sail, s513.-
900. geographically: Atlantic ocean,
$4,000: Pacific ocean, 1857, 900; square
rugged ships on both oceans, $4,000
Full compliance with all require
ments fer the bill would Ak the initial
expenditures at between 100000 and
5000, 900.
"Under the general subsidy increase
IN expenditure depends upon increase in
shin building. The completion OF 100000
1,rs ~ ocean steamers for foreign trade