The San Francisco call., 1908-05-22
SUBSIDIES TO BE
PAID MAIL LINES
Congress Will Authorize Double
Rates to Second Class
Steamships
Local Representatives Fail to
Show Eagerness to Take
Up the Work

WASHINGTON, May 71-Congress
today took an important step looking
TO the payment ofs ship subsidies, the
conferees on the postof1ce sppropria-
tion bin having agreed TO accept the
amendment by the senate authorizing
the postmaster general to contract
with steamship lines running to ports
OF South America. Philippine islands,
Japan, China and Australasia for the
carrying OF the mails and to pay the
same rate TO vessels of the second
class that is now paid on American
vessels Of the first class TO Europe. and
TO vessels of the third class the rate
now authorized for vessels OF the sec
ond class.
There are no American lines of the
the effect OF this legislation will be to
encourage the establishment Of mall
and passenger steamers 10 ports Of
those countries.
SHOW LITTLE INTEREST
Officials of neither the Pacific Mail
nor the Oceanic stea mship companies
seemed eager yesterday TO take adVan-
tage OF the increased appropriation
made by congress for the carrying of
the United States mails to far Pacific
ports.
F. S Sanuels, manager of the Ocean
ic company. said that the vessels OF
that corporation were in the second
class and would now be IN a position
TO qualify TO receive 81 q mile on the
outward bound voyage for carrying the
mails Under the rating heretofore IN
-orce the allowance was only 81 mile.
Whether we viii resume running
vessels TO Australia and carry the
mails can not be determined for a
time" he said australia and New
/ Zealand have made other contracts for
carrying the mails since we discontin-
I
whether we could get that business
! again Australia has been waiting for
I our government to act and now that
! the increased subsidy Is to be allowed
expect soon TO hear from that govern
ment-"
Adolph ]. Frey, assistant to the vice
president and general manager Of the
Pacific Mail company, the Japan and
China line, said in substance that there
was little prospect of the Pacific Mail
availing itself OF the increased allow
ance. The steamers OF the company
also are in the second class and would
/ receive 81 an outward mile, or some
( s2s.s00 for each trip to the orient. but
I other conditions govern the acceptance
T OF the appropriation.
POINTS OUT DIFFICULTIES
II We accepted the contract on those
terms" explained Frey. we would
4 have partly TO man our vessels with
American crews. II would be impos-
sible TO get an American crew at this
port and IL one were secured by any
! chance the wages we would have to
pay would be so high that we could
not make any profit out Of the con-
4 tract At present we carry the mails
/ al what is practically postal rates
! that is. we get what amounts 10 the
! postage on the mail we carry
/ Under the terms of the bill just
! passed the subsidy can not be greater
/ than the proceeds from the mail car
ried," said the reporter. IF You now
get all the postage value does it not
mean that the new appropriation VIII
4 be greater than the postage paid.
1T might be" answered Frey. IN
/ that event the subsidy would have &c
/ be discontinued toward the end OF
1 each fiscal year The chief value OF
! this bill is that il is a step toward
/ the providing Of an adequate subsidy tc
/ build UP the merchant marine"