Every evening, Wilmington daily commercial., 1906-04-12
subsIdles ana Export prloes.

mittee on merchant marine and fisheries,
at Washington on tuesday last Mr.. L. 5.
Cramp Of the Cramp shipbuilding firm
OF Philadelphia was urgent in his recom-
mendation OF government subsidies as a
stimulus TO the shipbuilding interests
Of the United States. He claimed that
there was a great difference in the cost
Of building ships in this country and in
Europe, giving the instance Of the bid Of
a Scotch firm for large vessel the figures
being S6l3,0O whereas tho lowest Ameri-
can bid was sl,024,OOo The latter
figures were u per cent higher than those
Of the highest foreign bidder. He said
that at present there was absolutely no
difference between the foreign and do
nestle price Of steel.
Now, il is to be presumed that Mr..
Cramp knows the conditions Of the ship
building business much better than do
those who are not engaged in building
ships; yet there are conditions, made ap-
parent by sworn testimony as to actual
facts, which afford such convincing in
formation bearing upon the cost Of ship
building materials that the outsider may
become as well informed upon this par
ticular branch Of the business as the
builders Of ships.
It may be, - Mr.. CRmp says, that at
present there is "no difference between
the foreign and domestic price Of steel, 4"
but heretofore il has been the other way.
Less than two years ago, in Cleveland.
Ohio, Mr.. James c. Wallace, president Of
the American Shipping Co., testified be-
fore the Merchant Marine Commission as
follows: Recently one Of our largest
steel mills sold abroad 100000 tons Of
steel plates. They delivered Il, / under
stand, at Belfast, At s24 ton. That
would practically mean, with ocean rates,
as they are, S22 ton at tidewater. They
are charging US today, at Pittsburg, s32
ton. A differential Of $40 ton in a
ship carrying 5000 tons is S5O,OOO That
is the shipbuilder's profit" In addition,
Mr.. Wallace testified that the concern
TO whom the steel plate he spoke Of was
sold was the Harland & Wolf Co. Of Bel
fast, and that the seller was the United
States Steel Corporation, otherwise known
as the Steel Trust.
So impressed was the commission with
this testimony that in ia report Il pro-
tested that "when American steel mills,
long and amply protected, sell material
to foreign shipyards at So or $40 below
the price asked from American yards,
these steel mills simply heap an intolerable
burden upon an interest well-nigh pros
trate."
Here is testimony that will not be dis
putod, showing that American steel plates
were sold TO the shipyards Of Great Brit
ain at So to $40 per ton cheaper than
American shipyards were charged for
them. Here, also, is expert testimony 70
the effect that this difference in the price
Of steel plates alone in favor Of the foreign
shipbuilder amounts 70 the builders
profit on a 5,O00-ton ship. Mr.. Cramp,
in his testimony given last Tuesday, said
that az present there is absolutely no
difference between the foreign and do
nestle price of steel, but he did not state,
so far as tho public reports Of his testi-
mony go, that there was no difference at
the time Of the opening Of the competi-
tive bids for building a ship, which no
quoted for the purpose Of showing that
foreign builders could easily underbid the
shipbuilders Of this country. There is
every reason for believing, from all the
undisputed facts now available, that the
difference in the prices Of steel plates alone
was sufficient to account for the great
bulk of the margin in favor Of the foreign
bidders figures.
The same conditions that have been
revealed with respect 10 steel plates apply
90 steel rails IL has been stated by COM
potent men that steel rails are sold in
Liverpool at $40 per ton less than they
are sold for at any point In the United
States. Only a year or so ago an order
for 100000 tons was accepted from q
Canadian railroad at 50 per ton below
Pittsburg prices. In these unjust dis
ordinations in favor Of foreign customers
therefore, is to be found the great advan-
tage enjoyed by foreign shipbuilders, and
no system Of subsidies can be depended
upon to correct the inequality. Sub
sides would be but an additional burden
upon the people.