The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-05-10
SHIPPING
SUBSIDY
The Merger a Blow
To the Big
Scheme.
Especial to the Advertlserl

WASHINGTON. ID. c.. April 2f.-Th
news 81 the great steamship merger la
been a severe blow To the Congressiona
advocates q the pending ship subsidy bill
Representative MeDSrmott OF JERSEY
city. New jersey. was APPLY commenting
upon the situation today. Mr.. McDer
mott IN from perhaps the largest shiPpids
district In the United States and Is 80
lpscialiy familiar with the shipping busi
ness. He Is n member OF the House Com
mittee on Merchant Marine and Gloss
lstudent Of the pending subsidy bill. H.
thinks recent developments have largely
destroyed the probability OF the bills p-s
sage
In the course OF n running conversation
upon the subject today. he said:
THAT J. +. Morgan should bring to-
lEcthcr the leading foreign and Amer car
isteamship lines into one great combina'
tion with a capitalization OF two or tnre-
hundred millions seems To the averS 81
mind to put the shipping industry beyond
the necessity OF subsidy. IL - csp-ciHilN
Noticeable that At the time Of this news
SO unfarorabie tn the subsidy cause. IN
subsidy papers are beginning 10 e&pi.i.
1.-THE fear that all the new steamers 10 b
built under the steamship combination
will b. built abroad and the subs dy POO
meters In Congress are arguing the more
urgent necessity Of the subsidy bill as. an
Ioflset OF this. Even IL this fear shCui.;
be- realized. 10 would be an easy matter
Ito bring all such ships under the Ameft-
lean flag But that Is another story
I With q lawyers love OF Controversy.
Mr.. MeDermOtt knit his brows and con-
ttinued:
An additional complication arises In u
II VII in ~ NJ n
4 Griscom. President Of the international
| Navigation Co. in which he Affects ind 4
ference to the subsidy bill and intimates
that his lines would benefit very slightly
under 10. At the same time. he adro!tly
Suggests that the subsidy bill Is necessary
To enable ships now building and to be-
built to sail under the American flag on
an equal footing with the ships CT other
countries He also nalvcly suggests that
IL rests with the American Congress TO
determine TO what extent the new services
will II conducted by steamships built In
this c, Sntry under the American flag.
Notice tnat Mr.. Griscom's company Is by
far the largest American entry into the
new shipping combination and hopes To
nave It's charter adopted by the combina-
ton.
Now. Il In interesting TO recoilect that
the friends Of the International Naviga-
ton Company have been for some time
slyly saying that this company had lost
interest In the subsidy bill. The giving
out OF this impression has been largely
attributed TO n belief that the subsidy bill
would more probably pass II this were
true. In other words. that the Interna-
tionai Company had so largely overdOne
the work OF attempted subsidy prom ting
that they could hereafter best help the
subsidy cause by seeming Indifferent tO
"a. All these calculations. official and pri-
vatc. have shown that the international
would DO b. far the largest beneficiary
OF any Of the subsidy bills proposed Sen
ato= Frye. I'm his report upon the pending
bill. puts this company down rs the pros
pcctiVc recipient of yl.7i5.S63 per year.
And this neat sum involved no require
uicnts Of moment In addition TO what
they are now doing. Hence. their vital
concern for the pending subsidy bin Is
fully a. evident a. the reason for their
assumed Indifference"
\ now thought struck 1.-The gentleman
from New Jersey and ne added:
"And now comes AIR. Charles II. Cramp.
the great Philadelphia shipbuiider. who
eicqucntiy argues In a newspaper Inter
view thai the subsidy bin N an absolute
necessity To- keep all the new ships of
the Morgan merger from being built
abroad. That Russia and Japan have
been ordering ships built In the United
States. that James j. Hili 10 building his
big ships In the United States because he
tan build them Inou--chcaply than abroad.
that u has been proved by all who are
not unwilling 10 believe II that ships can
be built Rs ehCapiy In the United States
a. abroad. MAT Mr.. Charles II. Cranp
himself argued years ago that ships could
b. - chsaply built here - abroad-thcsc
thinEs matter not Co Air. Cramp now nor
TO any Of the interests back OF the sub
sidy bin
'.It - no wonder that on the heels Of |
ihls giant shipping combination. showing /
most eoneiusiyeiy 10. ability 90 scOrn Gov. !
Of
aid are putting forth their most subtle /
arguments. But. go far a. i have observ- /
81. the ear OF Congress 10 deaf TO such I
sppeai The Democrats are practically
'oiid against the subsidy bin and the Re-
pubiican- are split half In half The
western Republicans are Almost solid
against the biii - this time and largely
'pposed 20 10 ~ any time. This opposi-
ion - strengthened and emphasized by
he nsrre struFgie that has just taken
with the wide differences In tho party
Feated - tnis struggle. there IL very
,enerAi sfixiucinatloa TO risk further
pitt over a shin subsidy bill.
'~Th. promoters Of the subsidy bin have
or years tired TO advance their cause b.
newspaper propaganda. BY working con-
entions and business organizations. By
earrings before committees OF Congress.
.d by the splendid advocacy Of their
rte nds In Congress The net result has
cen utter failure. Now. they are trying
combination Of assumed Indifference and
zctfui destinations 80 to the pr liability
Q all the increase In shipping being I'M
or foreign naes. The late d. bate IN the
snate. the editorial discussions In the
aiding papers OF all parties. the honest
f1dy given the question by n majority
Q Con<res-men have all shown the In
orreetneas Of both their premises aud
seir conclusions. Their new plan seems
= sure OF failure ne their old plan"