Los Angeles herald., 1909-10-27
SHIP
SUBSIDY BILL
SENATOR NEWLANDS GIVES HIS
REASON FOR OPPOSITION
Nevada solon Says Country Cannot
Compete with Other Nations in
Carrying Trade Under Pro-
tectiVe Tariff

RENO, New, Oct. Ex-senator
Francis G. Newlands made public to-
night his answer to James McNab,
president of the San Francisco cham
ber of commerce, who had written ask
ing the senator's view regarding the
passage by congress of a ship subsidy
law.
Mr. Newlands said he opposed the
subsidy and advocated rather the
United States build an auxiliary fleet
to be leased to private persons in time
Of peace. The senator said that under
the protective tariff the United States
could not hope to compete with other
nations in the carrying trade. The
letter follows:
my dear sir: I am in receipt of
your letter of September 13 in which
you call my attention to the blight
that has fallen on Pacific coast ship
ping interests and state that in the
last analysis, unless American ship
ping interests on the Pacific be prop
erly promoted and protected, the great
manufacturing and producing interests
in the interior of the country and the
labor interviewer therein, will feel most
keenly the extinction of American ship
ping in Pacific waters
''I have also read, with great in
terest, your letters to the editor of the
American Flag, the Hon. George G.
Perkins, and to the secretary of the
navy, all of them showing that 1t Is
impossible for American vessels,
manned with American crews, to COM
pete in the international transporta-
ton with foreign ships because of the
higher cost-both of construction and
operation-of American ships, and the
necessity therefore of liberal subsidies
by the national government in order to
rehabilitate the. American merchant
marine.
Vessels Cost More to Build Here
your letter to the secretary of the
navy makes comparison of the Ameri-
lean vessel Wilhelmina with foreign
ship, showing that the Wilhelmina,
constructed in America, cost double
what it. would have cost if constructed
in England, and showing that this yes
sci, without counting the difference In
cost of feeding the crew and other
items, must earn $12,750 more than a
foreign vessel on voyage of sixty
days. or in other words, that if the
foreign vessel should receive $3.50 per
ton the American vessel should re-
ceive 1888 per ton for carrying coal
for the navy, illustrates the hopeless
character of attempting to rebuild our
marine engaged in foreign trade save
by a colossal subsidy, which the peo-
pie would not tolerate.
"You urge. in view of these tacts'
that the so per cent extra otfered by tne t
navy department TO AlnerlGaa sillPa E7,tl ao :
the transportation of coal over Whdt
foreign vessels would charge is not
sufficient and that this should be IN
creased to 95 per cent.
1.-THE same reasoning would require
the encouragement of the American
merchant marine by subsidy Whlch
would enable the American ships TO
receive for transportation in the freight
charge and in the subsidy received
double the amount charged by foreign
ships for a similar service. The enor-
nous burden which would thus be I'M
posed upon the taxpayers of the coun-
try can hardly be measured.
Cost Must Be Lessened e
"This is the initial step to take, and
the establishment of a merchant ma
rine will accomplish nothing until the
cost of production in our country Is
diminished.
"If anything is to be done in this
direction | would favor the immediate
construction of ships as part of an
auxiliary system of the American navy,
letting them out in times of peace to
private corporations and establishing
on them a naval reserve, SO IIldl potH
the ships and men could be made use
of in case of war, in preference to any
system OF subsidizing private ship
companies. We have gone far enough
in granting special privileges and in
substituting special interests and we
should retreat from the position al
ready assumed rather than advance
further in this direction.
Every sincerely yours
FRANCIS G. NEWLANDS."