Los Angeles herald., 1910-04-12
Rise and Fall of Commercial
CenterS- Ill By Lionel A Sheldon

to make the carrying trade on the seas
reasonably profitable. Attainment and
retention of a high status in world
commerce depends upon an adequate
merchant marine of our own. Great
Britain lives and thrives on the earn
lngs of her shipping more than on any
other branch of her business.
It is urged with some truth that our
national policy, as disclosed in restric-
tive legislation, has been a standing
discouragement to investment in Amer
lean shipping-a policy that forbids
the purchase of foreign-built ships, al
lowing them American registration ana
flying the flag of the country. II Is
true that ships built In foreign yards
cost less than those constructed in
American yards, the difference being
In the cost of labor. There has been
some exaggeratlon in respect to the
difference in the cost of construction
at home and abroad. our domestlc
yards seem to be kept busy. 1t Is true
that wages in this country are hlgher
than anywhere else in the world put
we have an advantage in the matter
OF materials, and 1t is hardly denied
that American workers are able to and
do accomplish more in the same time
than do or can their foreign competl-
tors.
one obstacle has been that profits
of enterprises in other lines have heen
large, and our capitalists are prone TO
seek after those only which assure the
best returns It has become habit
of our moneyed men, when projects are
for the interest of the public as Wen
as private, to seek aid from the pub
lie treasury or to ask special privileges
that will forbid competition, and these
cities, and our manufacturers nave
favors have been exacted as condl-
ton precedent to the investment OF
money. Special privileges have been
conferred on railway companies ana IN
development of public utilities In the
cities. an dour manufacturers nave
asked and have been granted proteetlVe
fmport duties that income on lhelr
capital may be up to their greeuy
ideals. Efforts have been constahs
and perplexing to find some way or
taking money from the pockets OF the
people as a gratuity. IL mas peeh q
cause of continual embarrassment ana
obstruction to private enterprise, pc
sides being a source Of demoranzatlon
To n1blic officials That was not Wnat
our forbears relied on In making con-
quest of the continent. -,
Several methods have been adopted
bv other nations to aid building up OF
their merchant shipping, among tneul
and most usual are direct subsidies.
tonnage bounties, postal estimates ana
discriminating duties. Subsidies can
not be extensively resorted to. as IL
would bankrupt any nation II granted
to all merchant ships. 1t has never
been extended beyond Limited mum
nor of lines. and on which trade is In
large volume and competition was
active. or for the purpose of develop.
ing trade in new fields, and which, II
successful, promised benehclal resu,.s;
TONNAGE bounties cannot be extended
to ali ships Of a nation. If IT possess
anv considerable number, for IL would
draw too heavily on the revenues. IT
has been tried and generally quickly
abandoned. Postal estimates Is more
conspicuously a British method, ana
simply means appropriating literally
from the postal receipts, that larger
compensation shall be realized for car
rying the mails, and this assistance
wnere the traffic is large and conpe-
, tition is sharp.