Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-07-21
THE MERCHl Ant MARINE
JOINT CONGRESSIONAL COMMITS
SION AT MILWAUKEE.
Seeking Information for Legislation to
Raise the Standard of Ameri-
can Shipping.

MILWAUKEE. July 21.-The joint con-
gressional commission on merchant marine
opened its Milwaukee Clearing today in the
United States court room. The commission
is represented by United States Senator
Gallinger and Representatives Minor and
Spicht Mayor Rose welcomed the delega-
ton to Milwaukee, but refrained from enter
ing into discussion of the subject, deeming
1t a political one. Senator .Gallinger re-
sponded explaining the objects of the COM
mission He said that he hoped the in
vestigation now In progress would lead to
legislation that would raise the standard
of American shipping to the front rank
where 1t belonged.
Julius Bleyer. associate editor of the
Evening Wisconsin, who has given much
study to the subject of marine. read
lengthy paper on the development of lake
shipping.
The Foreign Trade.
On the question of merchant marine en-
gagged in foreign trade, he Endorsed the
views of Thomas Clyde of the Clyde line
of steamers, given before the hearing In
New York city. Continuing he said, in
part:
TT has been said the extra cost of the
American ship would not deter investment
IN Shipment IOr the foreign trade II the
cost Of operating the American ship were
not higher than the cost of operating for
egn ships. This is probably true; but
subsidy plan might be made to compre-
bend an interest return for fixed period
an annual rebate large enough to nav
nominal rate of interest on the extra in
vestment, plus a percentage for deprecia-
ton.
Rebate Suggested
Roughly rebate representing a 4 per
cent rate of interest on the extra capital
and a per cent rate on the same extra
capital to cover depreciation, ought to put
an American investor on an even footing
with the foreigner far as the ship is
concerned
IF a rebate of this kind were provided it
could be limited to a fixed term of years,
as it Is possible that with a revival there
would be established gradually a systematic
Standardization of hulls, like that which
has obtained in the ship building trade of
Great Britain. and in consequence ships
might eventually be built cheaply on this
side Of the Atlantic as in foreign yards This
element of the proposition is within the
scope of the protective tariff idea-that of
building up struggling industries.
Extra Cost Problem.
THE problem of extra cost of operation is
one that will probably resist ultimate solu-
ton. 1t cannot be solved unless American
wages decline to the level of European
wages, or foreign wages increase to the
level of American wages. AS neither of
these changes are within the bounds of
tional expectation, the disadvantage in the
matter Of operation must be regarded as
permanent. AS the aim of protection to
American Industries is to provide barrier
against the foreign competitor equal to the
difference between foreign and American
wages a rebate is suggested in the case of
shipping based upon close estimate of the
percentage of increased cost of operation.
Rebate Based on Expense Account.
For instance after a vessel owner had
presented his statement as to cost and re-
ceived his annual rebate in interest upon
the extra capital invested, plus an allow
ance for depreciation, he could be allowed
rebate based on his expense account for
the year, or a rebate per head based on
his showing as to the number of men en-
ployed during the year and the number of
days of employment This would keep the
subsidy or rebate down to actual losses,
and obviate payment by the government for
the time during which ships are lying idle.
The mail service bounty could be extend
ed on the principle upon which compensa-
ton for mail train service is based. Speed
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