Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-06-27
MEETING AT DETROIT
SUBCOMMITTEE OF THE CON-
GREssIONAL COMMISSION.
Some Interesting Facts Brought Out
in Comparisons Of Lake and
Coast Commerce.

members of the commission were present:
Senator's Penrose of Pennsylvania and CAL
finger of New Hampshire. Congressman
Grosvenor Of Ohio. Humphrey Of Washing
ton. Minor of Wisconsin and Spight of Mis-
sissippi and w. l.. Marvin of Boston.
rotary of the commission.
Mayor VIM. c. Maybery delivered an ad-
dress of welcome. in responding to which
Senator GaIllnger stated the purposes of
the commission. We are not endeavoring
to find reasons so submit to Congress" he
said for the passage of so-called sub
sidy law. We desire to hear from mon of
differing opinions. You owners of tonnage
the lakes do not need legislation. You
have the protection of nature and also the
protection afforded by Congress in the ex-
clusion of foreign countries from our coast
wise trade.
Conditions on the lakes are admirable
but on the high seas are deplorable.
AT the conclusion of our hearing In diff
ferent parts OF the country We shall sift the
evidence. and we hope to be able to recon-
mend some plan to Congress for the I'M
provement of our merchant marine on the
high seas
j. L. Hudson. president of the Detroit
board of commerce. was the first speaker.
Subsidy a FHghtful Word.
Subsidy is a frighftul word" said Con-
gresham GrOsvenor after Mr.. Hudson had
finished. And yet you haven't . cents
worth OF property in Detroit that would
have been valuable without gifts Of money
from the federal government The openings
Of your lines OF communication was due to
subsidies You were handicapped by OBJ
structions to navigation. You had low wa
ter in the harbors and you had very small
ships. I remember when the harbors at
LOrain and Ashtabula had depths OF seven
big freight ships were made possible by
the expenditure of the federal government
In improving the lake harbors. the lime kiln
crossing and other channels You are Nv
ing on subsidies. You have built. In my
opinion. the prettiest city in the world on
subsidies. The legislation that prohibits
foreign tonnage from participating In our
coastwise trade is the strongest kind OF pro-
lection In the world. The question now Is
whether the great system that has built
up your inland trade may not demonstrate
some plan and system by which Congress
can accomplish equally good results on the
high seas.
An Index Of Prosperity.
William T. Livingston. president Of the
Lake Carriers Association. was the next
speaker. Mr.. Livingston said. ITO me the
freight tonnage Is the greatest index of
nations prosperity"
Mr. Livingston presented interesting sta
tistics on the business passing through
the 500 and Welland canals as showing
the enormous proportion and phenomenal
1.-THE Suez canal In 1902 ten million
tons of commerce pass through It's locks
while in the same year the 500 canal saw
sj.0oO0O tons and it must be remembered
that the 500 canal was open only 10 days,
while the Suez canal was open 800.
Last week wheat was carried from Chi
cago to Buffalo for &c. bushel This the
lowest rate on record. was. of course. be-
low the actual cost of transportation. In
facilities for loading and unloading IL can
not be disputed that facilities cannot
be equaled anywhere In the world.
Steamers Remarkable Performance.
Mr.. Livingston mentioned the remark
able performance recently on Lake Su-
perior when steamer was loaded with
52l7 tons of ore In three hours and fifty
six minutes. He made a careful and OK
tended analysis of shipping statistics TO
show what has been accomplished on the
lakes m the way of reducing cost of trans
portation. improving loading and unload
ing facilities and increasing the carrying
capacity of vessels.
Mr.. livingston said that in his opinion
there was no single form of appropriation
of money by the federal government which
had done so much good TO the country at
large as that spent on rivers ana naroors.
Referring to the acquisition OF the Panama
canal zone Mr.. Livingston predicted that
the tonnage passing through the Panama
canal would not exceed 1O.W0.0U year IN
the first ten years of its existence. and
interjected Senator Gallinger.
Increase of Ships Beneficial.
MIR. Livingston thought an increase in
the size OF ships would be benehciai 10
American commerce on the high seas. He
said that while some people referred TO
ship subsidies as graft" 1t was necessary
to devise some means to meet the difference
in wages between American and European
n give the
secretary of the committee statistics on
comparison OF the cost OF labor in ship
yards OF the lake and at yards where 1or-
eign- going ships are built
Senator Gallnger said there were three
points that had to be reckOned with as
son between American commerce and that
OF other nations These were the addi-
tional cost OF construction here. the ad-
dit!onal cost of operation here and the
fact that other nations subsidiZe their
shipping
Difference in Opinion.
The next speaker was A. c. Pessano OF
this city, president OF one of the largest
ship yards on the Great Lakes Mr.. Pes
sano advocated great waterway connect
ing the Great Lakes and the Atlantic
coast This brought out a difference in
opinion between Senator Gailinger and Mr..
Pessano the latter holding that the state
OF New York would reap a rich return
from every cent expended in this direction.
while Senator Gallinger said a cursory con-
sideration of the subject made him incline
to the opinion that the New York canal
expenditures were not wise.
MIR. Pessano favored differential duties as
opposed to ship subsidies. On this point
Senate Gallinger asked Mr.. Pessano what
would be the result II by adopting the
plan OF differential duties 1t was necessary
to revoke thirty or more commercial
treaties
Senator Gallinger said he feared that the
abrogation OF these commercial treaties
would mean retaliation or possibly COM
merclal war. Mr.. Pessano replied that he
really favored a subsidy but feared II could
not be passed by Congress. therefore he
had become favorable to a plan of differ
entail duties as compromise that would
be possible of accomplishment
An Engineers Opinion.
George Y. Wisner OF Detroit, a widely
known engineer. said that while New York
was preparing to build a twelve-foot canal
from the lakes to the coast Canada could
have a connecting waterway from Georgian
bay to the Ottawa river with the necessity
of building actually only forty miles of
canal. The Canadians. he said had been