Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-01-09
SHIP SUBSIDY TO
PROVIDE LINES TO
SOUTH AMERICA
Senator Galllnger introduces Re-
vised Bill Looking Ahead
to New Commerce.
PLANS WILL REQUIRE
TWENTY NEW LINERS
Ownership and Mon
OpOly of Trade Is Barred
by Plan.

WASHINGTON. Jan. a.-Senator Gal
linger today introduced a revised ocean
mail subsidy bill which eliminates from
present consideration all trans-Pacifc
lines and applies only to the estab-
lishment of ocean mail services on
routes to South America, south of the
eQuator@that is, to Brazil, Uruguay,
Argentina, Chile and Peru.
No special provision Is made for lines
to the Isthmus of Panama, because 1t lie
expected that the canal will be open
for m by the summer of 1918,
which Is as oon as the proposed new
lines could be established. Steamships
then can pass through the canal on the
long routes down the west coast OF
South America.
AS In other bills presented. 1t is pro-
posed that the postmaster-general shall
be authorized to pay FOR ocean mail
service on vessels of the second class
on South American routes, the Same
rate per mile (s4) as is now paid for
service on vessels OF the first class be-
tween the United States and European
ports.
In order to serve the new commerce
which It is expected the canal will open
for the Southern States. It is provided
that II more than one line is established
from the north Atlantic coast n Of
the lines shall touch at least n port
south Of Cape Charles for mail, passen-
gers and freight on the outward and
homeward passages.
New Provisions In Bill.
A provision. which is now in sub
sidy bills, forbids the award of any
contract for an ocean mail line to any
bidder engaged In competitive trans
portation by rail or in h business OF
exporting or importing merchandise.
Moreover, the acknowledgements is d.
rected to cancel any contract, the per-
Torrance OF which shall rest within
the control of any competitive railroad
company, or n person or persons in
control OF h same through stock
ownership or otherwise"
The postmaster-general is directed
also to canoe any contracts held by
any person who gives undue prefer
ence or advantage to any particular
person. corporation or locality, or any
particular description of traffic.
The total expenditure in any one
year under the bill Is not to exceed
81, 900, 900, and shall not, in any case,
exceed the mount of revenue received
from the foreign mail servic over and
above the amount otherwise paid for
such service.
VIII Prevent Monopoly.
The trainers of the bill believe that II
will break the present monopoly in
ocean transportation between the
United States and the principal coun-
tries Of South America. 1t is regarded
as likely to create at least two lines
from the Atlantic coast to Brazil and
Argentina, and a line from Puget
Sound and San Francisco to Panama
and the west coast of South America.
These new services would require the
construction of from twenty to thirty
steamships capable OF a speed OF at
least sixteen knots an hour, and with
a gross tonnage of from 5000 to 10000
tons, built on designs approved by the
navy department.
Under the terms OF the contracts,
the ships would have to be turned
over to the use of the government
in times of war. Not one American
steamship Is now running on any of
the routes covered by the bill.