The Washington herald., 1907-02-07
NO Subsidies Fncourage shipDiua?

Mr.. Spight, of Mississippi. i'm the report
of the minority OF the House Committee
on Merchant Marine, has made a very
suggestive examination of the claims of
ship-subsidy advocates that the postal
subsidies provided in the pending bill
will result in considerable additions to the
ocean feet under the American flag Mr..
GrOsvenOr. for the majority, offers the
prediction that the carrying out of the
contracts contemplated in the bin viii
require fleet of thirty-two steamers in
addition TO the eleven we now have.
What light does our past experience with
postal subsidies throw upon the proba-
bility that this prediction viii be real
ized2
Mr. Spight shows in the first place
that with respect TO the Hi and Harri-
man lines, which are generously provided
for almost by name, in the Littauer bill,
the subsidy viii go TO vessels now afloat
and in service. Each of these lines is
TO have an annual subvention Of $4,000.
Mr. Spight intimates that the only
change in the HiH fleet essential in order
to gain title to this subsidy is that of the
alteration of fOurteen-knot vessels into
speed-trial ships of sixteen knots speed.
Without the slightest change the Har-
riman line, according to Mr. Spight, can
put five of its regular steamers into the
Service, and save for making Manila a
regular port Of call, no benefit Will ac-
Crue TO the American people The pro
posed line to Chile viii be merely an ex-
tension Of the service of Hartman lines
now running 20 Panama.
So much for the easily foreseen effect
of the pending bill Some of the other
lines Of mail communication proposed
in the Littauer bin cannot be operated
until steamers are built for that particu-
lar service. We may judge what likeH-
hood there is of new lines spriuging into
being at the command OF Congress by
the promise and performance Of former
subsidy legislation. In 1892 Postmaster
General Wanamaker made contracts with
eleven lines for the mail service pro-
Vided for in the Ocean-mau bill Of 1891.
These lines. Mr.. Wanamaker stated.
would. when completed. comprise forty
two ships Of 165.S0- tonnage, and the con-
tractors were expected to expend $1,000
900 to provide the necessary ships. Within
year three of the lines went out of
business. As to the eight remaining lines.
Postmaster General BisseII said in 1888
that THE ocean-mau service contract
routes on which service is now being
actually performed We're in existence and
were having performed on them the same
service before the change in compensa-
ton took place" The millions that. in
the rosy view of Mr. Wanamaker, were
to be expended in building new ships did
not materiaIize. observes Mr.. Spight
More than 81 Oo0 900 has been paid out
for seven contracts under the ocean-mau
bill. or 100000 more than Mr.. Wana-
maker estimated the contractors would
be required to put in the service. OF
this sum over 100000 has been paid
out for the service on the New York
Southampton route. No new ships have
been built for this route. The subsidy
paid the American steamers employed in
this service Mr.. Spight characterizes as
a pure gratuity. Until the friends of
mail subsidies he concludes, can show
Us better results in the way of growth
of our merchant marine as the product
of such legislation, they must excuse US
for not being willing TO accept their
glowing statement as to what the future
may hold in store for us"
But the trouble. advocates Of subsidies
say, is that the subsidies already granted
are insufficient. Give US more money and
the country viii receive IAN abundant
reward in increased maritime strength
and increased commerce." to quote the
optimistic subsidy hunters But what
about the fellows who want a cargo sub
sidy? They are not satisfied with the
pending bill, because it does not provide
a subsidy on freight. They fail to see
where the new ships and increased COM
merce are coming from unless a subsidy
is paid on every ton of freight carried in
American bottoms. Where. can any limit