The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-10-16
Entered at Richmond, Ind, Postoff1ce
AS Second Glass Mail Matter.
SHIP SUBSIDY.

idea was being agitated we declared
against it, believing that it would not
benefit the country at large but only
a few wealthy men. Since that time,
ton more closely and, after hearing
Mr.. Watson's able address concern
ing ship subsidy and the good it
would do the entire country, are con-
WINGED that it will prove a real bene-
rather hard, however, at first to see
why nation as rich and powerful
and progressive as the United States
should have to provide a subsidy in
order to obtain a merchant marine
worthy the name.
One of the chief reasons why Am
orleans hesitate to build ships to run
in competition to German or English
ships is on account of the Difference
in the cost of labor. The American
laborer receives practically twice as
much for his work in building a ship
as does the German or English labor
err. And labor, as everyone we'll
knows, is the most important and eX-
pensive consideration entering into
the construction of a ship. There
fore, the American who builds ship
to compete with German or English
ship owners Is handicapped from the
start by the relatively larger invest
ment he must make. Added to this is
the ship subsidy the German and En-
glish governments pay their ship own
ers. These two considerations make
it practically impossible for the Am
erican ship owner to compete on
money making basis and without that
there is no inducement to any man to
invest his money
Just why the American ship owner
can not compete on a money making
basis Is readily understood. 1t costs
him more to build a ship and he re-
ceives no subsidy. The German and
English ship owner can compete for
freight On a lower basis because, hay
ing a ship subsidy, he can lower his
freight rates below a money making
point and still make money on &C
count of his subsidy. Another con-
sideraton is that after the ship is in
running order the German and Eng
lish ship owner still enjoys an added
advantage. He has cheaper labor to
run his ship, American sailors being
better paid than their European
brethren. Taking these things into
consideration 1t is easily seen that If
this country wants a merchant marine
it will have to provide a ship subsidy
in order to enable American ship own
ers to compete on money making
basis with their European competi-
tors.
OF course the point that settles
whether or not the United States
should provide for ship subsidy is
whether or not we should have a mer-
chant marine. Whether a merchant
marine will be a benefit to the coun-
try. We believe it will and think an
incident that happened to a Richmond
70 OF will
rect. Gaar, Scott & Co. a year or so
ago had occasion to ship some thresh-
ing machinery to the Argentine Repub-
lie AS there were no American ship
ping lines to that country the ship
an English line. The shipment was
delayed for months by our English
cousins and when finally it was de-
livered it was too late. Now this il
illustrates the difficulty under which
the American exporter labors in get
ting his wares to foreign markets I'M
der existing conditions. He must
oShu LIS oAipiuSutS III d
way greatly adding to the freight cost
and, being a foreigner to a German or
English shipping line, he is consider
ed second when it comes to deliver
ing goods and the German or English
exporter is given first consideration.
With the granting of a ship subsidy,
however. should come a change in our
consular service. Our consuls abroad
at present are enjoying their positions
simply as rewards for political work
in the past. Such qualifications as
familiarity with the language of the
country to which they have been ap.
pointed, or possession of sufficient
judgment to enable them to make
such reports as will be help to the
exporters of this country in develop
ing their foreign markets were not
considered. The appointments were
as we said before, made simply as re