The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-21

cruisers in case Of war, are fostering their
steamship lines by the payment OF sub
sides. England rs paying TO her seeamship
lines between six and seven million dollars
a year-it Is estimated that since ls4o she
has paid TO them between two hundred and
fifty IN three hundred millions. The
enormous development OF her commerce,
her p~reponderant share OF the carrying
trade Of the world and her .shipyards
crowded with construction orders from
every part OF the earth indicate the success
OF her policy. France Ia paying about
eight million dollars q year. Italy and Japan
between three and four millions each. Ger
many, upon the initiative Of Bismarck. Ia
building up her trade with wonderful
rapidity by heavy subventions TO her steam
ship lines and by giving special d~ifferential
rates OF carriage over her railroads for
merchandise shipped by those lines. Spain.
Norway, Austria-Hungay CanadaEsl sub
sidize their own lines. II Is estimated that
about $2s 100000 a year Is paid by our
commercial competitors to their steamship
lines.
Against these advantages to his COM
petitor the American shipowner has to
contend; n 1t Is manifest that the sub
sidized ship can afford to carry freight at
cost for a long enough period TO drive
him out Of b usiness
UNNATURAL COMPETITION.
we are living in a world not OF natural
competition but Of Subsidized competition.
State aid to steamship lines is as much a
part OF the commercial system OF our day
as State employment Of Consuls to promote
business.
at win be observed that both Of these
disadvantages under which the American
shipowner labors are artificial; they are
created by governmental action; one by
our wi Government in raising the
tective tariff, the other by foreign Gov
ernments lin paying subsidies to their ships
for the promotion OF their own trade. For
the American shipowner IL Is not a contest
OF iusalIg-nce, sk,n industry and thrift
against similar qualities in his competitors;
il is a contest against his competitors and
his competitors Governments and his own
Government also.
Plainly these disadvantages created by
governmental action can be neutrali2ed
only by governmental action, and should
be ne utralized by such action.
NED PROPOSED
what action ought our Government
just purposef Three kinds Of action have
been advocated.
Il. A law providing for free ships, that is.
permitting Americans to buy ships In other
countries and bring them under the Ameri-
can flag. Plainly this would not at all
meet the difficulties which l have described.
The only thing IL would accomplish would
De 10 overcome the EXCESS IN COHJ Oh UulIOl0K
a ship in an American shipyard over the
cost of building it in a foreign shipyard.
but since all materials which enter into an
American ship are entirely relieved OF
duty, the difference in cost of construction
is so slight as TO be practically a negligible
quantity n to afford no substantial OBJ
stacle TO the revival Of American shipping.
The e~Xpedient OF free ships, therefore,
would be merely TO sacrifice our American
shipbuilding industry, which ought to be
revived and enlarged with American ship
ping, and to sacrifice il without receiving
any substantial benefit. It is to be OBJ
served that Germany, France and Italy
all have attempted to build up their own
shipping by. adopting. the policy OF free
ships, have failed in the experiment, have
place the policy Of subsidy.
y. 1t has been proposed to establish
a discriminating tariff duty in favor Of goods
imported in American ships; that is % say.
to impose higher duties upon goods i'm
ported in foreign ships than are imposed on
goods imported in American ships. We
tried that once many years & n have
abandoned it. In its place we ave entered
into treaties OF commerce and navigation
with the principal countries Of the world
expressly agreeing that no such discrimina-
ton shall be made between their vessels
and ours. To sweep away all those treaties
and enter upon q war OF commercial retalia-
ton and reprisal for the sake Of accom-
Bl1AllS " WHY "hab "a Oo uOhO IL
rectly should not be seriously considered. =.
THE OBVIOUS MErHoD.
%. There remains the third and obvious
advantages imposed upon American
shipping through the action of our own
Government and foreign governments by an
equivalent advantage in the form of a sub
sidy or s~ubvention. In my opinion. this
is what should be done; it is the sensible
and fair thing m do II ia What must ho
done IL we would a v a revival of our
shipping and the desired development of
our foreign trade. We cannot repeal the
protective tariff; no political party dreams
OF repeating it; we do not wish to lower the
standard OF American living or American
wages. We should give back to the ship
owner what We take away from him for the
purpose of maintaining that standard
and unless we do give it back we shall
continue to go without ships. How can the
expenditure of public money for the i'm
provement OF rivers and harbors to promote
trade be justified upon any grounds which
do not also sustain this proposal? Would
any one reverse the policy that granted aid
to the Pacific railroads. the pioneers OF our
o internal commerce, the agencies
that built up the great traffic which has
enabled half a dozen other roads to be built
in later years without assistance?
WOULD NOT BE GIFTS.
Such subventions would not be gifts.
They would be at once compensation for
injuries nfiicted upon American shipping
by American laws and the confederation
for benefits received by the whole American
people-not the shippers or the shipbuilders
or the sailors alone, but by every manu-
facturer, every miner. every farmer, every
merchant whose prosperity depends upon
a market for his products.
The provision for such just compensa-
ton should be carefully shaped and di-
rected 8 that il will go to individual adj
vantage only "a far az the individual ia
enabled by IL to earn a reasonable profit
by building up the business OF the country.
"A bill ia now pending in Cong ess which
contains such provisions; it has passed
the Senate and is now before the House
Committee on Merchant Marine and Fish
cries; it il known a. Senate Bill No. $40,
Fifty-ninth Cong ress. First Session. 1t
provides specifically that the Postmaster
General may pay to American steamships,
Of specified rates Of speed, carrying mails
upon a regular service, compensation not
to exceed the following amounts: For a
line from an Atlantic port TO Brazil monthly,
$3.50, 900 a year; for a line from an Atlantic
port to Uruguay and Argentina monthly,
Sls7, 500 a year; for a line from a Gulf port
to Brazil monthly, tl37,5O0 a year; for a
line from each of two Gulf DOrta and from