Evening star., 1902-03-05
Legislative Bill Passed by the
Senate.
SENATOR CLAY SPEAKS
OPPOSED TO THE SHIPPING SUB
SIDY BILL.
House Adopts Conference Report on
the Pension Appropriation
Bill.

At the conclusion of routine business in
the Senate today consideration was begun
of the bill making appropriations for leg:s-
lative, executive and judicial expenses. This
is the second of the big supply bills of the
government to be taken up by the Senate.
The reading of the bill was concluded at
2 O'Clock. all of the committee amendments
having been agreed to without debate. The
bill then passed without division.
y bill providing for the Communication for
town site purposes of homestead entries in
e!tain portions of Oklahoma was passed.
The unfinished business, the shipping bin.
then was laid before the Senate and Mr..
Clay GiaD delivered a speech in opposition
to the measure
Senator Clay's Speech.
Senator Clay began by saying that he
favored an ocean mail service fully equal.
If not superior. to the similar service of
other nations. 1t should be obtained. how
ever. he claimed. at just and reasonable
price. and should not be connected with
any subsidy scheme. The feature of the
present bill which carried the largest APP
preparation was that relative to better
ment of the ocean mail service by the es-
tab.iShment of a number of new lines.
There was proposed an increased annual
expenditure of three million dollars year.
and vet there was nothing from the postal
authorities to warrant the assumption
that this was necessary desired. The
present foreign mail system he considered
ample and sufficient for present needs. but
even II it should not prove to be fully so,
the existing law gave warrant for any
necessary increase. He deprecated policy
which had for its purpose subsidy to
shipOwners under the guse of mail pay.
Attack on Subsidy Feature
Senator Clay devoted the main portion
~ hnu To OF
upon the general subsidy feature of the
bill. which is separate from the ocean mail
feature. He argued that the low rates
given by foreign ships against which
American Shipowners complained, do not
at all work to the injury Of American
exporters. who get the benefit of these low
rates. Ocean freight rates the cheap
est 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 advocacy of a general sub
sdy. First. that it cost more to build
ships in the United States than abroad:
second. that the American wage scale is
higher. and therefore the cost of operat-
ing ships under the American flag is
greater than under foreign flags; third.
that foreign governments subsidize their
merchant marine.
Cost of Construction.
Senator Clay quoted a number of
thorities to prove that with the better
methods prevailing in the shipyards of this
country the cost of construction is no
higher here than abroad. He contended
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 shipOwners can and do
obtain their labor in any ports at which
they touch. The American shipowners
make use of the cheapest labor they can
obtain. The provision for certain per-
c6ntage of the crew to be American will
Not necessarily result in any material in
crease in the cost of operation. although
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 it was
in no sense warranted
Aid to Merchant Marine.
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 its merchant
marine. Both governments pay for ships
which can be converted into auxiliary
cruisers. but that is all. Great Britain's
payment in this line was but three hun
dred thousand dollars year. He con-
tended that there was no general subsidy
two governments which the chief COM
merC1al rivals of the United States.
Compared With Previous Bill.
Senator Clay compared the provisions of
the present bill with that of the last Con-
gress. which had been defeated by the ac-
tive work of the minority. He recalled the
estimate of the commissioner of naviga
ton. upon which that former bill was
based. that ii would require nine million
dollars year to offset the advantages en-
joyed by the foreign merchant marine. and
compared with that estimate the one from
the same official who now says that
subsidy of one million dollars year will
effect the same result The enactment of
tbs bill would not result in any material
increase in the number of ships flying the
American flag.
The senator concluded by declaring that
In his opinion. the bill Is vicious in prin-
Ciple. in that II is an effort to aid private
business through taxation of the people.
THE HOUSE.
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