The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-03-06
WHY 1T Is UNNECESSARY
We Build and Operate Ships as Cheap
ly as Others.
SUBSIDY WON'T BENEFIT W07KlNGMAN
There is Strong Probability Now That Vote
viii be Reached Upon the Measure
One Week From Next
Monday.
(By the Associated Press.)

Washington, March 5.-It appears like
ly now that the Senate will reach a vote
upon the pending shipping bill one, week
from next Monday. When Mr.. Frye, in
charge of the measure, endeavored today
to secure an agreement for the time of
taking vote, that date was mentioned
as being satisfactory to the minority
members of the Commerce Committee
AS they have the opposition to the bill
in charge no objection is likely to be
raised by other members of the Demo-
cratic side.
Mr. Clay (Ga.), addressed the Senate
today in opposition to the bill and had
not concluded when the Senate adjourn
ed. He made forceful and interesting
argument which was given careful atten-
tion by his colleagues.
Early in the session the Senate con-
sidered and passed the Legislative, Exec
utive, and Judicial Appropriation Bill,
the second Of the big supply measures to
be acted upon at this session.
Senator Clay began by making it clear
that he favors an ocean mail service
fully equal, if not superior, to the SINH
lar service of other nations. 1t should
be obtained. however, he argued. at just
and reasonable price and should not be
connected with any subsidy scheme. The
feature of the present bill which carried
the largest appropriation was that rela-
tive to betterment of the ocean mail SER
vice by the establishment of a number
of new lines. There was proposed an in
croacod animal avpopd;f,ro nf {broo ,,,;y
lion dollars a year and yet there was
nothing from the postal authorities to
warrant the assumption that this was
necessary or desired. The present for
eign mail system he considered ample
and sufficient for present needs, but even
if it should not prove to be fully so, the
existing law gave warrant for any neces-
sary increase. He deprecated a policy
which had for its purpose a subsidy to
ship owners under the guise of mail pay.
Senator Clay devoted the main portion
of his argument however, to an attack
upon the general subsidy feature of the
bill, which is separate from the ocean
mail feature. He argued chat the low
rates given by foreign ships, against
which American ship owners complained.
do not at all work to the injury of
American exporters who get the benefit
of these low rates Ocean freight rates
are the cheapest in our history and the
result of these low rates is seen in the
great increase in American exports. There
were only three grounds on which the
supporters of this bill based their advo-
cacy OF general subsidy. First, that it
cost more to build ships in the United
States than abroad: second that the
American wage scale is higher and there
fore the cost of operating ships under
the American flag is greater than under
foreign flags; third that foreign govern
ments subsidize their merchant marine.
Senator Clay quoted number of au-
thorities TO prove that with the better
methods prevailing in the ship wards OF
this country the cost of construction is
no higher here than abroad He con-
tended that Americans can build iron and
steel ships as cheaply as they can be
built in any country in the world. With
regard to the cost of operation. Senator
Clay said that the American ship owners
can and do obtain their labor in any ports
ct which they touch The American ship
owners make use Of the cheapest labor
they can obtain The provision for a
certain percentage of the crew to be
American will not necessarily result in
any material increase in the cost of op-
Grafton. although an effort he said is
made to have it so appear. He argued
that to plead for the subsidy on the
ground that the American laboring man
would be benefited by ii was in no sense
warranted
With regard to the claim that American
merchant marine must be subsidized be-
cause subsidies are granted by competing
governments, Senator Clay undertook to
show that neither England nor Germany
gives any general subsidy to it's mer-
chant marine. Both governments pay for
ships which can be converted into auxil-
iary cruisers but that is all. Great Brit
aims payment in this line was but three
hundred thousand dollars a year. He con-
tended that there was no general sub
sidy of it's merchant marine by either
OF the two governments which are the
chief commercial rivals of the United
States.
Senator Clay compared the provisions
of the present bill with that of the last
Congress which had been defeated by the
active work of the minority. He recalled
the estim ate of the Commissioner of Nav
igation upon which that former bill was
passed that it would require nine million
dollars year to offset the advanta ages
enjoyed by the foreign merchant marine