The Washington herald., 1906-12-07
Limited to Pan American
and Philippine Ships.
PRESIDENTS STAND TRIUMPHS
Restricted Subsidy Is Now In the
Grasp of House Leaders, and
Speaker Cannon VIII Not Get I'm Its
Way-NOw aOFe Favorable 10 Leg
iSIation-TwO Courses Open.

yesterday on the subsidy bill. The House
Committee on Merchant Marine held its
first meeting Of the session TO take up the
measure
No vote was taken, and no action was
had as TO programme. Yet the discus
sion made it clear that the committee. as
it stands, is eight to eight for and against
the Senate bill This tie produces a nice
situation. The extreme friends Of subsidy
have before them two courses-one a des-
perate fighting chance, the other the der
nier resort of surrender with good terms
of peace.
There are two members Of the commit
tee who are kept at their homes by Sc
we're illness. These are William II. Flack,
of New York, and Allan L. McDermott, of
New Jersey. Both would vote for the
measure if they were present. This would
enable the friends of the complete sub
sidy to get a favorable report. with even
chances, in view of the Presidents recent
utterance. in behalf Of the bill. of getting
the favor Of the Speaker and passing the
bill
The other course, and that which in all
probability must be followed, is, to com
promise and take the half loaf of restrict
ed subsidy
This alternative is so substantial that
it has already been practically arranged.
1t appears as the proposition of MI. Wat
son, of Indiana, and 1t Is simply 70 allow
subsidy benefits only to American vessels
engaged in Pan-AmeTican and Philippine
commerce, with the elimination of subsidy
on steamship lines from Atlantic ports to
Europe and Africa. Even the benefits to
be held out 10 steamships to the Philip
pines would be limited 10 two lines. The
Indiana member has not been an advocate
Of subsidy heretofore, and the new posi-
tion taken by him is the result of his con-
viction that IL is a distinctly American
project TO stimulate commerce that is es-
sentially domestic.
Mr. Watson had an interview with the
President yesterday, and came from the
White House confirmed in the opinion
that restricted subsidy was the best path
TO q result More important than this,
however was the authoritative statement
current after the committee meeting that
the Speaker had indicated his attitude
toward the subsidy BILL and had said
that while he would be opposed 10 the
Senate bin, he would not be disposed to
antagonize the restricted subsidy propo-
sition. The proposed compromise will
call for about S5.0O0.g00 a year.
Still Fighting for Senate Bill.
While half a loaf is better than none,
the advocates of subsidy, who have been
waging battle against great odds Of pub
lie opinion for ten years past, are lOath
TO give up the whole prize. To get a part
Of what they desire only whets the an
petite for the complete feast. The eight
members of the Merchant Marine Com
mittee who are opposed 10 the Senate
bill are the FIVE Democratic members.
MeSsrs- Spight Goulden Maynard. Sher-
ley and Patterson, and the three Re
publicans. Messrs. Birdsall, Of Iowa, VII
son, OF Illinois. and HInshaw. Of Ne
brsska These three Republicans are
having full opportunity in these days ID
hear the arguments for the development
OF American commerce. The friends OF
the bill now and then are encouraged
10 believe that some one of them may be
able to see the light sufficiently well 20
come over TO the help Of the majority.
In the meantime there are outside Of the
committee many conflicting currents Of
oEiillpu III ItsdIu 10 tlte ellldLlpu- A
large number think that II the radical
subsidy men win, the Speaker will veto
the whole thing, and another failure
worse than any hitherto will be recorded
in the history Of subsidy agitation After
such a disaster IL would. IN their opinion
take years 10 regain the lost advantage
now reached by the Presidents advocacy
Of the scheme. and Secretary Roots in
cisive assistance in the cause Almost
without exception Republican members
of the House emphatically refrain from
calling what is sought TO be accomplished
subsidy measure. It is ''subvention"
every time.
Said one distinguished member last
night, when asked what he thought Of
the prospect: My only anxiety is that
if they pass that thing they will call it
by some other name II have got to vote
for It," This remark would express the
feeling Of a large proportion of the ma
jority.
The Tariff View of It,
There was no little surprise at the an
nOUnCement that Uncle Joe had aposta-
cised and agreed to any form of subsidy
The Interpretation put upon 1t is that the
Speaker, in common with standpatters
generally. is afl aid Of the surplus that is
y
willing to seek some way to dispose Of It
to anticipate a strengthening demand for
revision.
At the close Of business yesterday the
surplus was, in round numbers, Sl6500, COO
A year ago the Treasury faced a deficit of
Sl0000,000. BY the close of the present fis-
cal year, IL something is not done to stop
II, Secretary Cortelyou will have on his
hon -Il.s efaN
COO At the present rate of increase
it viii not be very long, only a few years.
when all the money in the country will
be tied up in the vaults Of the Treasury
With this tremendous accumulation, re-
visiOnists have an ever increa sing lever
age with which TO pTy loose the standpat-
ters from their heretofore solid footing
If the government continues to collect
more than it needs, what argument can
the standpatters find for keeping the tariff
wall so high? The only way out is to hit
upon some scheme that will keep the
wOTrisOme surplus down. The ship-sub-
sidy bill looks good TO them. Once it gets
its hooks into the Treasury surplus. It
may be reasonably certain of checking
that unhealthy swollen appearance. Uncle
Joe. who holds the legislation of the Con-
gressional session I'm the hollow of his
hand, is seemingly somewhat persuaded
That the grandest standpatter of them all
should thus capitulate is regarded as
proof positive that the high tariff men
realize the situation TO be desperate, and
only the most desperate of remedies will
promise a cure. This is the way the tariff
revisionists discuss the matter
An Opening Wedge.
Representative Hinshaw. member of
the Merchant Marine Committae wboco
opposition had in part prevented the
committee from reaching vote. said
Yesterday that the subsidy advocatas