Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-03-06
OPPOSES
SHIP SUBSIDY
PROVISION
GEORGIA SENATOR SPEAKS BE-
FORE THE SENATE IN oP-
POSITION TO SENATOR
FRYE's BlLL.

WASHINGTON, ID. q. March 5.-sena-
tor Clay began his speech on the ship SUBJ
sidy bill at o'clock this afternoon. He
will speak until the senate adjourns to-
day and will probably conclude tomorrow.
The senate is listening closely to the
Georgian's argument for II is well known
that he has studied his subject closely
since the ship subsidy vas first proposed,
and he is considered one Of the best in
formed men in washington on this sub
ject.
Senator Clay began ~ making it clear
that he favors an ocean mail service fully
equal If not superior, 10 the similar SER
vice Of other nations. n should be obtain
ed. however, he argued. at a just and
reasonable price and shOuld not be con-
nected with any subsidy scheme. The
feature of the present bill which carried
the largest appropriatien, was that rela-
tive to betterment of TIE ocean mail SER
vice by the establishEeent of a number
of new lines. 1t proupged an. Increased
expenditure Of three million dollars a year
and yet there was nothing from the postal
authorities to warning the assumption
that this was necessan or desired. The
present foreign mail sy4tem he considered
ample and sufficient for#present needs, but
even If it should not ppve to be fully so,
the existing law gave warrant for any
necessary increase. Jig opposed a. policy
which had for its purpose a subsidy to
ship-owners under the kuise 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 ftom the ocean mail
feature. he argued that the low rates
given by the foreign Slips against which
American ship-ownefs tomplained do not
at all work to the fniult-0f American ex-
porters, who get the bAnefs Of these low
rates.
Ocean freight rates aft the cheapest in
orr history, and the rsult OF these low
rates is seen in the gGeatest Increase In
American exports. 1here were only
three grounds on which the supporters
of this bill based their advocacy OF
yearly ship subsidy. FIRST, that II cost
more to build ships Ia the United states
than abroad; second. that the American
wage scale Is higher and fnereIofe tne
cost of operating ships under the Amerl-
can flag Is greater than under foreign
flags; third, that foreign governments SUD-
sidize their merchant raarme.
Senator Clay quoted numoer OF aa-.
thoritfes to prove tf8es.N with Inc DsNAe.
methods prevailing Ia the ship yards OF
This country the cost OF construction IS
no higher here than abroad. He contend
ed that Americans can build iron ana 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 snip
owners can and do obtain their labor IN
any ports at which they touch. The
American ship owners make use OF the
cheapest labor they can obtain. The pro-
vision for a certain percentage of the
crew to be American viii not necessarily
result in any material increase in the cost
of operation although an efrert, he SAID,
is made to have it so appear.
They plead for the subsidy on the
Nn.Ir, sivlcy mo n
would be benefited by It, but this was IN
no sense warranted. With regard to the
claim that American merchant marine
must be subsidized because subsidies arc
granted by competing governments SEN
ator Clay undertook to show that neither
England nor Germany give any general
subsidy to it's merchant marine. Both gov
ernments pay for ships which can be con-
verified into auxiliary cruisers, but that is
ALL Great Britain's payment in this line
was but $4,000 a year. be contended
that there was no general subsidy OF its
merchant marine by either OF the two
governments which are the chief CONNER
cial 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 estimate of the commissioner Of nav
igation on which that former bill was
based that it would require 100000 year
to offset advantages enjoyed by the for
eign merchant marine and compared with
that estimate the one from the same OIL
cial who now says that a subsidy of
million dollars a year will effect the same
result. The enactment of the bill would
not result in any material increase in the
number of ships carrying the American
flag.
The senator concluded by declaring that
in mis- opinion the bill is vicious in prin-
ciple in that IL is an effort to aid private
BUSINESS through taxation of the people.