Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-01-18
57TH CONGRESS.
Favorable Report on the Frye
Ship Subsidy Bill
Authorized by Committee -WiIl Be
Made by Senator Frye.
Hearings on the lsthmian Canal and Pacific
Cable Propositions.

Washington. Jan. 1.-THE Senate
committee on commerce, today. aC-
| thorized favorable report Of Senator
Frye's ship subsidy bill. The report
will be made by Senator Frye.
The Democratic 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 several
amendments to the bill. The most i'm
portant are:
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 1900
gross registered tors the vessels re-
ceiving bounty under the bill.
The report prepared by Senator Frye
was read to the committee. 1t says that
the purpose of the bill is 10 establish
the maritime supremacy of the United
States in trade with Asia and in the
Gulf of Mexico and the Caribbean sea;
to establish securely trade between the
United States and South America and
to give the United States respectable
L
The claim is made that all these results
| will be accomplished within 10 years.
The report asserts that the bill will
so extend shipbuilding as to transfer
| from abroad to the United States the
center of that industry as the centers
Of other industries recently have been
transferred and also that it will give
| to the United States measure of
| maritime independence corresponding
TO our industrial and agricultural indie
pendence. Senator Frye furnished the
press the following summary of the re-
port:
The establishment of this complete
American ocean mail service, involv-
ing much shipbuilding will require sew
eral years. 1t will render the United
States as independent of foreign pow
ers for it's ocean mail service as is
Great Britain. The cost of the Ameri-
! can service by American mail steamers
will be s47oo.oOo. The cost of the Brit
ish and colonial service by British mail
steamers is $4,700.000. Receipts from
ocean postage by the United States are
now estimated at S3.000.0O0. The an
| nual deficit under the new American
system proposed, Including minor SER
vices, will be about 50 900 900. The an
| nual deficit under the British colonial
| system is s2,11S.000. The postal subsidy
provision enables the postmaster gen.
eral to establish an American ocean
| mail system superior to the systems of
| Great Britain, France and Germany.
THE report asserts that the bill vii,
| revolutionize in American favor az
against the Suez route, the worlds ocean
mail connections with China and Japan
and will affect Australian connections.
ut will give the United States ~ aux
| iiiary merchant cruisers. compared with
Great Britain's &c.
The second part of the report deals
with the general subsidy to all American
vessels, steam and sail, except mail
steamers.
americans have absolute free trade in
foreign going ships. so no ship buldinrs'
trust is possible under the bill. Ship
builders can import now free of duty ma
terials for ships for foreign trade so no
combina ton to raise prices of material
is practicable.
IF al American ship owner will buiii
his vessel IN the United States. employ
GERS and crews, performing certain SER
vices for the Anne rican government AMI
using the vessel to promote American
commerce. he will be paid subsidy SUN
cient to put him on an equality with the
foreign ship owners. employing foreign
labor and serving foreign government
The average cost Of building ocean
steamers, mainly for cargo, is $102 per ton
in the United States and $40 In Great Brl-
tain. Average monthly wages on ocean
steamers, mainly for cargo. are: AmerI-
can, $50; British, SIG; German and Scar
dinavian. ST..
The general subsidies proposed equalize
American and foreign costs on thee
Eases.
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, il gives special adj
vantages to merchant vessels in the
Pacific trade.
Based on actual navigation OF
American vessels in foreign trade on
1900. the subsidies proposition would |
amount to sl.072.000. divided as follows:
Steam. Excluding mail vessels), !
S559. 600; sail. s5l3,Oo0: geographical, At |
lantic ocean. $4,000: Pacific, s427. 0Oo: .
square-rigged ships on both oceans. !
sl61, 900.
Full compliance with all require
ments for the bill would fix the initial 4
expenditures at between 100000 and 4
100000
The completion of 100000 tons OF |
ocean steamers for foreign trade in one 1
year. involving $1.300.0o0 in subsidies,
will place the United States in advance
of Germany as si1ipbuilding nation.
The deep sea fisheries bound Is to II
encourage an industry which, from the
battle Of Lexington to the battle Of ii
Santiago. has furnished more men pro- II
portionately for the national defence
than any other American industry, The III
annual expenditure is estimated tat II
$4,000. This amount offsets $1601nO II
paid to promote fisheries by Canatt II
which uses for the purpose the annu&
interest on s. 900 paid by the Unite>
States to Canada under the Halifax
award in 1878. n
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