Los Angeles herald., 1907-01-14
TO BUILD UP BIC
COMMERCIAL NAVY
WILL REHABlLlTATE AMERICAN
MERCHANT MARINE
National Convention Holds Meeting to
Urge Revival Of Discrimination
Clause In DIneIey Tariff
Measure
snecia1 TO The Herald.

CLEVELAND, Jan, l3.-AJ tne la
tional convention for the extension OIL
the foreign commerce of the United
States which opens in Washington to-
morrow, an extended review of the diff
ferent measures that have been dis
cussed during the last twenty years
for the upbuilding of American ship
ping in the foreign trade Will be pre-
sented by Alexander r. Smith, former
ly Superintendent of the New YORK
Maritime exchange and now connected
with the Merchant Marine league OF
this city. American shipping rehabili-
tation will loom large in the discussion
of measures by which to extend our
foreign commerce.
Mr.. Smiths review begins with the
FRYE ship subsidy act of March g. 1891,
a. measure that had been before con-
gress for five years at the time of It's
enactment. AS finally adopted, and as
now in force, it only provides subsidies
for mail steamship lines, five of when
are operating under that act today. AS
originally drawn the provision for mail
subsidy was 80 per cent greater than
was provided, besides which proviso
for the payment of 3 cents per gross
ton per hundred miles sailed by Amer
lean cargo vessels on foreign voyages
was eliminated.
Only One American Line
The next measure, the Cochran act
of 1892 admitted to American register
the British steamships City of New
York and City of Paris on condition
that their American owners should
have equal tonnage built in the United
States. This led to the construction
of the steamships ST. Louis and st.
Paul, which constitute the only Amer
lean line at present in the transat-
lantic trade.
Five per cent of our trade with
Europe, which latter constitutes 60 per
cent of the entire foreign trade of the
United States, is all that is carried un-
der the American flag, and were it not
for the ships of this one American line,
says Mr.. Smith, the proportion carried
in American vessels would be but a
fraction of l per cent.
Representative Fithian of Illinois, as
chairman of the committee on mer-
chant marine and fisheries, reported toI
the house of representatives a free ship
bill which hung upon the calendar un-
acted upon throughout every session
of the only congress (March 4, 1893, to-
March 4, 1880 that, with the executive
branch of the government, has been
under the control of the Democrats
since the beginning of the Civil War
Speaker Crisp, says Mr.. Smith, refused
to set day for the discussion of the
Fithian free ship bill, although, Mr..
Smith asserts, he was importuned sol
to do by the president, the secretary of
the treasury and the commissioner OF
navigation.
The senate commerce committee at
the same time could not be induced to
even favorably report a similar bill.
In 1894 Senator Frye moved an amend
ment in the senate to the Wilson-Gor-
man tariff bill, to compel imports in
foreign vessels to pay a higher duty
than imports in American vessels paid,
but the proposed Frye amendment was
rejected.
Republicans Violate Pledges
Beginning in 1896 an effort to re-es-
tablish this old policy of discriminating
duties was made, the Republican ma
tional convention and its presidential
candidate each indorsing it in strong
terms. Subsequently the Republicans
declined to carry out this prediction
pledge. But, asserts Mr.. Smith when
the Dingley tariff act went over to the
senate in 1897 it was there so amended
as to repeal all laws that prevented
the re-establishment of the differential
duty policy, leaving only existing
treaties to protect imports in foreign
ships from the payment of the discr1m-
mating duty.
This view was denied in an opinion
rendered at the time by the attorney
general of the United States. which
opinion was confirmed by a decision
rendered shortly thereafter by the
United States board of general apprais-
ers. Since that time this section of
the tariff has remained dead letter.
Mr.. Smith states that this has been
brought about by executive fiat nulli-
flying the intent of congress without
giving the federal courts an opportun-
ity to judicially determine what the
real intent of congress was
HIS also asserts that had the law been
enforced as intended by congress, from
1925. 900 900 to $50 100000 additional Gus
toms duties would have been collected
hereunder by the United States dur
ing the past ten years. This, however
he regards as of less Importance than
the great increase in the tonnage under
the American flag that would have
followed its full enforcement. An ap-
peal is now before the secretary of the
treasury urging the enforcement of the
existing tariff act in accordance with
this view of the intent of the congress
that enacted it.
Mr. Smith reviews the more recent
efforts that have been made by the late
Senator Hanna, Senator Frye, Repre-
sentative Payne and others, and that
are now being made by the congress
sional merchant marine commission, to
put through a general ship subsidy law
Such measure, prepared by the mer-
chant marine commission, passed the
senate at the last session, and is now
before the house merchant marine and
fisheries committee. President Roose-
welt is quoted as favoring its passage
at this session.
Steel Companies May Help
Perhaps the most unique suggestion
in Mr. Smiths review is that which
urges the great steel and iron corpora
tions to themselves pay a bounty on the
construction of steel ships in the United
States. He suggests that from $3,0OO,-
900 to $5,OOO,00O a year for ten years so
expended by the combined steel cor
porations would afford a large market
at home for steel manufacturers and at
less than present foreign markets for
American steel manufactures are Sc
cured.
Last year the value Of such steel
manufactures exported was 1850 600, 000
the price abroad being much less than
received for similar manufactures at
KHrlaf fIla ffsaHrs A