The Mathews journal. (Mathews C.H. [Court House]) 1903-1937, 1910-01-27
JONES FkYORS
SUBSIDY BILL
At Least he Voted for a Similar
Measure Last Session-Now Be
heved the Humphrey Bill Will
Be Passed-Resent Calling
1t Ship Subsidy Act.

resentative Isassiter, of the Fourth
District. are divided as to the bill
amending the ocean mail act Of 1891,
commonly called the ship subsidy act.
although be il said i'm the outset that
the Republicans. as well as the Demo-
Gratis, who are supporting the meas
ure. object streBuOusly to calling II
subsidy bill. Representative Slemp.
the Republican Representative from
Virginia, will support the bill.
Representative William A. Jones, OF
the First Virginia voted for n bill at
the last session which was similar TO
the one which has been introduced in
the House this year by Representative
Humphrey. and which soon will be re-
ported from the Committee on Mer-
chant Marine and Fisheries. The bill
has the endorsement of President
Taft The bill last year passed the
Senate without opposition. but was
defeated in the House by a majority
Of three or four votes Representa-
tives Jones and HobsOn were the only
Democrats who voted for it.
The traditional opposition Of the
Democratic party 20 subsidies of what
ever nature must account for the OBJ
lection of Democratic advocates of
the bill to having il dominated ship
subsidy bill. 1t is recalled that there
was nothing which gave greater OF
Tense to congressional as well as out
side advocates OF the payment TO the
Southern Railway of upwards of
100000 for running a fast mail train
from Washington to New Orleans es
TO have it called q subsidy" The
application of the name is believed to
have had much to do with the final
discontinuance of the appropriation
Nobody ever has doubted the sound
ness and saneneSs of the views of
Representative Jones, Of Virginia In
conversation recently Mr.. Jones out
lined the position of those Democrats
who supported the bill OF last year
and who will support the Humphrey
bill this year.
Ocean Mail Bill.
an 1891. when 1 entered Congress"
said Mr.. Jones. "a bill was passed
authorizing the Postmaster General to
contract with American owned vessels
90 carry the mails 1t was termed the
ocean mail bill. Such contracts were
made. but they did not prove profit
able. and some OF the lines gave them
up. At present there are eight lines
owned in the United States which are
operating under this law. They run
chiefly between ports In the United
States and the West Indies and Cen
trail and South America
The Government paid out for this
service last year the sum of $1,127,-
900. and received in revenue from the
same service $2,555, 1000. am in
formed that several of the lines con-
template surrendering their contracts
as Improbable.
1.-The bill to amend the law which
was defeated in the last Congress, pro-
vided that ships OF the second class
mentioned in the original act should
receive the compensation given ships
CT the first class and that ships of the
third class should be compensated at
the rate provided for ships of the
second class. This bill not only passed
the Senate without opposition, but
such Democrats as Culberson. Money.
the former and the present Democratic
leader. respectively. and Bacon and
Simmons commended the bill. In the
house IL was defeated by small ma
jority, only HobSon and myself from
among the Democrats. voting for it.
while the Humphrey BILL" contin-
ued Mr.. Jones, lis framed along the
lines OF the bill of last year it is much
better IN one respect 1t contains a
provision which should make il more
acceptable to all Democrats. / allude
to the free ship section, which pro-
vtdeS that vessels owned by Americans,
whether built here or abroad shall be
given American registry, provided
such vessels are of as much as $500
tonnage. The bill provides that such
vessels shall not engage in coastwise
trade, but may trade with Philippine
ports.
This alone should commend the
approval of the bill. almost without
reference to what other provisions il
contained.
Inc Dill provinces explicitly that
81, the Postmaster General shall not con-
tract under this bill with any foreign
ships &c carry mails. OF course, he
may contract with foreign owned
ines to carry our mails, but they would
not Ice allowed to receive the compen-
sation provided for under this bill. The
Postmaster General says that if this
bill is passed five new mail lines viii
be established to run between ports
OF the United States and the Orient
and Australasia, and from Atlantic
to South American ports.
"A very important provision of the
bill is one which prohibits the tota
compensation from exceeding the rev.
enues derived by the Government from
the lines carrying the mails under the
contracts to be made. Thus it is made
impossible for any money to be takeI
from the general treasury and paid fol
the service.
THE Government paid out last yea1
upwards of 100000 to the railway.
of this country for transportation Of
the mails. In many cases the rail
carrying malls over their lines as wa:
paid them by the express companies fol
the transportation of express.
The Government paid out last year
Tor rural free delivery service upward:
of $S5,000,0O0, which was $2S,0O0, 900 il
excess of the receipts from the service
In other words, every rural delivers
route cost the Government $685. more
than were the receipts from that route
Rural Deliveries Costly.
Yet this ocean mail service bill can
not cost over a million and a quarter
and cannot reach that unless the re-
ceiptS are that much. / cannot see
that there Is any principle which
should prevent the soundest Democrat
the 'narrowest Democrat, if you please
from supporting the bill. 1t simply
provides for the payment from the
postal funds for service actually rem
dered the Government, the payment tC
be confined strictly TO the revenue from
the service performed"
Several ship subsidy bills have been
killed in Congress in recent years
There was the Mark Hanna bill, which
was straightout subsidy measure
providing for the payment of about
100000 to builders of American
ships. IT was defeated. The two Gal
linger bills, much similar in nature met
similar defeats. They provided for
payment of public funds to private en-
terprises. Under Senator Hanna's bill
the Standard oil Company, which has
many millions OF dollars Invested in