The Birmingham age-herald., 1910-02-19
EWELL AND M 'CLARY .0N MERCHANT MARINE
Greeted By Large Crowd at
 Chamber of Commerce
WORK ON THE HIGH SEAS
AmerIcu Would suffer Greatest Panic in History If England and Ger many went to War-Products
 Are Carried Fly English

In clear. foreible. logical manner, carrying conviction with every sentence J. l.. Ewell, secretary of the National Associa tion of Manufacturers, delivered his address yesterday evening on or eign Merchant Marine to a large crowd in the auditorium of the Chamber ot Commerce. building. The address was given under the auspices of the Chaihpef of Commerce and the speaker of the day was introduced by President A. Il. fofd' A short address was given by former Congressman James F. McClafy ot Mn nesota, following the lecture ef MT. Ewell, in which he pointed out in stflk- ing fashion the needs for merchant ma rine.
 Mr. McClary took up much of the same line of argument as AIr. Ewell and the points were emphasized in a way that brought the importance of the subject graphically before his hearers.
 The course of lectures being delivered all over the country by MT. Ewell and MT. McClary is one of the movements resulting from a campaign for the adop- ton of a ship subsidy bill by the United States Congress- They are making speeches in all the principal cities of the south and are certainly giving those who hear them something to think about. MT. Ewell said in part:
 '"The National Association of Manufac- turers realizes more and more that the development of our export trade Is vital to the future prosperity of our people. During the past year our net exports Of gold to settle foreign balances has to- taled $95,000,000. Our exports of food stuffs and raw materials must shrink with the growth of our country in popu- lation. Unless we can develop an increa sed trade in manufactured products the trade balance against us Is sure to increase and our prosperity will be cor respondingly imperilled. Improvements in machinery tend constantly to increase our manufa ctured output to an extent that inevitably outruns the home demand.
 "NoW the association sees that the opening of foreign markets and the re- tention of these markets is largely con- ditioned by the development of an ade- quate foreign merchant marine. This IS not a political issue. It is business is sue. The National association regardless of political utilization is for such meas ures as will result in the rehabilitation of our foreign merchant marine.
 ITO quote, It is a condition and not a theory that confronts us.' What do we behold as the present situation?
 'The present situation is just this. Whereas one hundred years ago our for eign merchant tonnage totaled 9Sl,o19 tons and carried 93 per cent of our foreign trade, today 1t amounts to only about S00,00O tons and carries but about ' per cent of our foreign trade. In the past century our foreign trade has increased 15-fold. Our coastwise marine has also kept pace and increased fifteen-fold, but our foreign tonnage is actually consider ably less than 1t was hundred years ago. As matter of fact. in making up our foreign merchant marine we count in the tonnage that plies to Porto Rico, Hawaii and the hilippines-tonnage that is protected by our laws governing coast wise trade and so not to be properly classed with our foreign marine.
 we have now but four Atlantic liners carrying our flag and six steamers on the two Pacific routes that fly the Stars and Stripes An English naval officer writing in the July Atlantic tells how he was riding along the Liverpool docks in an electric train when he saw the American flag flying from the peak of a merchant ship. The sight so interested him that he left his train and walked back half a mile to inspect it. He in- ouired of the dockmaster whether the American flag was often seen at his docks. His answer was that this case, which was on the "Homeward Bound" hailing from San Francisco was the first in his experience of twelve years.
 "Professor John c. Freeman of the Uni- versity of Wisconsin. tells how at Copen- hagen, the largest port on the Baltic, the starry flag was last seen on a merchant vessel eighteen years ago during the administration of Grover Cleveland. Hon. John Barrett informs us that fin travel ing 75o00 miles and visiting most of the Important ports he never once saw the American flag flying over a single large American carrier. The English. German and even Japanese were everywhere. In the great South American ports such as Buenos Ayres> and Rio de Janeiro which are visited annually by many thousand vessels of all nations. the flag of this country is a curiosity.
 The present situation is fraught with the utmost peril to our foreign trade.
 Would Suffer Great Panic
 "Were war to break out tomorrow be- tween England and Germany we should at once suffer the greatest panic we ever knew, because fully 80 per cent of our sea- borne commerce is carried in English or German ships. If as during the Napo- leonic wars 90 per cent of our commerce were carried in American bottoms such a war instead of being terrible disaster for us would be wonderful opportunity. As it is now our entire foreign trade Is subject to the exigencies of international politics.
 "Our Pacific mail steamers running from San Francisco to the Orient are said to be operated at an annual loss of half & million dollars. which has to be made up by the Pacific railroads in conn ection with which they are run. This loss in occasioned because they are operated in competition with the heavily subsidized British and Japan csc lines. A consular report is au- thority for the statement that the steamers of the Nippon Yusen Kaisha lines did last year business of s11,- 525,O0o gross with a net profit of s1,- 219,O0O. This line received in totality subsidies amounting to $2,610,oOO.
 Had it not been for this subsidy the net profits would have been con verted into e net loss of S1.Ss1,o00.
 Many seem to wonder why American n shipping has declined. The reasons are not far to seek. Much has been said about tNe higher cost of operating American ships due to the higher wages paid officers and crew. This, 1t is true, Is something of handicap. Not little has been asserted. too, regard ing the higher cost of ships construct ed in American shipyards because of the higher prices of material in this country and the higher rates of wages. This Is also another serious handicap. But greatest of all are the heavy sub sides paid by all the leading maritime powers to their merchant marines.