Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-09
Report Of Special Agent
Hutchinson.
NOT NEEDED FOR TRADE
HIS REASONS FOR REACHING
THAT CONCLUSION.
Statistics Show That the United States
Has Suffered Less Than
European Countries.

Ihere will be CONSERVATION among the ad-
Vocates of ship subsidies when they learn
the nature of the reports that are being
sent to this country by some of the special
agents of the government Mr. Lincoln
Hutchinson, who is travelling in South
America and making reports to the de-
partment, has sent in some suggestions
In relation to the usefulness of fast di-
rect steamers in encouraging foreign trade
that Will prove very troublesome the next
time ship subsidies are talked about in the
Senate or House of Representatives. Mr..
Hutchinson takes the view that the means
of transportation between this country and
South America are entirely satisfactory for
the bulk of the trade. and that only in
minor would direct and fast steamers
prove beneficial in increasing trade rela-
tions.
Will Be Received as Heresy.
Such a suggestion will be received as
rank heresy by that great body of men
who have been urging that the government
subsidize shipping interests in order to in
sure fast steamers between this country
and South American ports. Even the op-
ponents of ship subsidies have not claimed
that fast steamers would be useless in
building up trade. They have generally
rested their opposition the claim that
1t is not the proper function of the govern
ment to give bountes to private corpora
tions for doing such work The opposition
to the principle of ship subsidies by the
democratic minority has been very general
ly based chiefly that argument. But
now that special agent of the govern
ment has reported that the rapid steamship
service would be of little or no use in build
ing up foreign trade entirely new fea-
ture has been introduced in the debate,
and it is sure to be used in Congress
Mr.. Hutchinson declares that the great
wholesale houses of South America dealing
in staple goods supply their wants long
enough ahead not to be Inconvenience by
a delay OF a few weeks in the delivery of
goods. Their orders, he says, are not sent
by mail. but are cabled, so that the ra-
pidity of the mails is of no consequence in
the transaction. There is, he says, a GER
tain amount of business in which specilca-
tions have to be sent to this country that
makes necessary the use of the mail steam
er and also certain cases in which prompt
delivery of the goods Is essential. But he
does not place much importance on that
class of trade.
Backed by Statistics.
This contention is backed up by statistics
10 show that those countries that have
been most liberal in improving their ship
ping facilities have not Jared any better
than the United States, and, In fact. In
some cases, they have not, according to his
statement. Jared as well. The logical in
ference of all that Mr.. Hutchinson says is
that the trade of this country with South
America depends upon the ability of the
country to provide what Is wanted at a
favorable price.
Not only have fast steamers no important
relation toward the country's trade with
South America, according to Mr.. Hutch
inson, but, as a matter of fact, he says
this country pays little more freight
on its goods delivered there via England
than do English exporters. He quotes fig
ures to bear out that contention.
This report from Mr.. Hutchinson was
brought out by inquiries he made in Bra
ri! in relation to statements of Mr.. +. L.
Corthell of New York city. Mr.. Hutchin-
son says:
"Mr. Corthells letter suggests some form
Of active effort on the part of the United
States government to promote the estab-
fishing OF one or more lines of large ana
fast, Steamers running between the ports or
the United States and those of Brazil, as
suning that this improvement of the serv-
ice would greatly increase the trade be-
tween the two countries. Mr.. Cortheif is
not alone in making this assumption. Near
ly every article that is written and nearly
every speech that is made on the subject
of our trade with South America seems to
take 1t for granted that the inferior char
acter of our direct steamship service to the
south is serious handicap to our ex-
porters.
There are, however, grave reasons for
doubling whether the Improvement of the
steamship service would have any great or
immediate results of the sort predicted, and
I have, therefore, considered 1t one of my
most important duties to examine this
question with especial care My reasons
for doubling the efficacy of the proposed
stimulus to trade fall under two distinct
'bo onipinnS NJ Ia 1or INN
here, and the experience of other nations
which have abundant transportation facil-
ties. l find many of the largest and most
experienced importers, men who deal in
goods from both the United States and
from Europe inclined to laugh at the Idea
that American exporters are In need of
greater facilities. They claim that they
never have any difficulty In getting all the
goods that are demanded from New York
quite as readily as from London, Liverpool
Hamburg. And as to the experience of
those countries that control the bulk of
the transportation to Brazil the statistics
show that in the past ten years some of the
countries of Europe which have made the
greatest effort to stimulate steamship facili-
ties between their ports and those of Brazil
have been the least successful In holding
their Brazilian trade.
Decline Smaller in Case of U. s.
"In short the countries OF Europe. as we'll
as the United States. have lost ground In
Brazilian trade in the last ten years, with
the single exception of Italy, but the decline
in the case of the United States is smaller
than In any other. We show, therefore, a
relative Improvement England, which con-
trolls the bulk of the transportation facili-
ties and Germany, which has been making
persistent efforts In favor of her direct lines
of communication, have both shown fall
ing off in trade greater than that OF the
United States while France. which SUBJ
sidzes one Of the largest lines running to
these ports, has lost over one-third of her
trade in the same period"
Throughout Ills report there is no iniica-
tion of uncertainty. He speaks with the
greatest confidence TO his conclusions
that Improved steamship service is of
Importance In considering the subject of in
creased Soath American trade for this coun-
try.