Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-05-25
THE SHIPPING DECLINE
Necessary That Desire Be
Created In American PeO-
pie to Own Ships
HOW TO GET MERCHANT MARINE
James J. Hill Says it Can be Done
Quickly by Admitting Foreign Built
Ships Free = Ships Can be Built in
England Much Cheaper Than Here
Remedy is an Export Bounty.

New York, May 25.-James ]. Hill
president OF the Northern Securities
Company and OF the Great Northern
railway, appeared as witness before
the merchant marine commission the
Joint congressional committee, which is
investigating the causes OF the decline
of American shipping, in order to sug-
gest measures for remedial legislation
THE first thing necessary, said Mr.
Eli, lis to create a desire in the peo-
pie of the country to own ships. 1t is
a purely commercial question. II there
is profit in it, people will engage In
it; if a loss, it is a question how long
people will stick.
Our conditions on the high seas. as
q nation. seem hard to meet. On land
in spite OF high rates of labor. the
United States has been able to work
out system without an equal.
why we are not able to do this on
the high seas is not clear to me, and as
far as l have investigated it, | believe
Illdl IiO SiIIl0ulI vi diASSI bOheSSS 'veeA
build 1t into & life worth living.
What the country wants is mar
ket. Outside of our agricultural prod
ucts, cotton, grain and Oil, there are
very few things we can export, because
the cost of production is so high. We
can not sell them. If we would carry
those products in our own bottoms II
would be a source of great profit.
They can build ships in England
much cheaper than here. Citizens OF
other countries have owned ships for
the last forty years to greater ex-
tent than we.
II have had experience in building
two ships-the largest freight car
riers in the world-and I don't want
any more.
1000 miles of railroad than two ships.
IT has taken four years instead of two,
through strikes and other delays.
If we are going to buy merchant
marine out of the treasury of the coun-
try it won't last long. We must give
people confidence to invest.
"1n Japan they have built up large
marine; they have paid tonnage, but
dc not remember the details.
"Our business on the Pacific coast is
hard. We have to compete with all
nations, and they are fighting very
hard for the Oriental trade. And
think that we have placed distractions
in the way of this trade We can not
comply with the regulations placed on
us and compete with ships of other ma
lions. We have been forced out.
Z don't think you will make much
of success of buying q merchant ma
rine; it won't stay with you. You must
get people interested, but there does
not seem to be much disposition on the
part of the people to go into shipping"
In answer to a question of Repre-
sentative McDermott. Mr.. Hill said
that his two big ships cost rs to so
per cent more to build here than
abroad.
Mr.. McDermott pressed the question
OF governmental aid.
But is the government able to go
far enough?" he asked Mr.. Hill.
III you will admit foreign built ships
free" he said, you will get a mer-
chant marine quickly"
How are we going to get back a
merchant mariner" asked Mr.. McDer-
mott.
IF you are willing to put tonnage
tax on all that goes to foreign mar
ket, everything that goes out of the
country. even to new markets. think
you would get the ships. That would
come out of the people.
"The ship subsidy question started
I ~, Sr,1 ~
the japanese to take our cotton to mix
with theirs SO that it would make a
better yarn. The Boer war broke out
and we could not get ships on the Pa
cific coast. l had to cancel an order
for $4,000 bales of cotton in December.
came on east and saw Senator Fair
banks and Senator Hanna. ! asked
why we could not get ships to ship our
goods. Senator Hanna said he would
see me in the morning and he did. The
result was that he opened his cam
paign in Ohio on the ship subsidy"
''Then your remedy asked Mr..
McDermott, is an export bounty?"
Yes, that is it,
"You seem to be very pessmistic
over the outlook" said Senator Gal
linger.
That is because / have looked at it
from a purely business standpoint. l
built those two ships simply as a reg
ulator--to try the experiment.
There are only two courses open;
the export bounty or government as
sistance which would rise in very
large figures.
Then you are convinced that we
shall have to give some sort of gov
ernment aid or so out of business
asked Senator Lodge.
Exactly. If you fix a limit of ten
years on the subsidies the favored par
ty must make the cost of his plant in
the ten years. Otherwise he will sell
out to the other fellow"
How much do you think would be
required for subsidy" asked Senator
Mallory.
"oh s1o,Ooo.ooO or sl5ooo,ooo would
get a lot of tonnage. You might take
it out OF the river and harbor bill. But