The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1911-01-10
IS LIMITED TO
SOUTH AMERICA
Ship Subsidy Bill introduced
in Senate.
PRESENTED BY GALLINGER

Measure Forbids Contracts Going to
Any Bidder Engaged in Competitive
Rail Transportation, This Provision
Being Expected to Break Any
MonopoIy-Cost Limited to $4,000,
600 Annually.
Washington, Jan. Ex-senator ia
cob H. Gallinger of New Hampshire
introduced a revised ocean mail sub.
sidy bill which eliminates from pres
ent consideration all transpacific lines
and applies only to the establishment
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, be
cause it is expected the canal will be
open for commerce by the summer OF
1913, which is as soon as the proposed
new lines could be established. Steam.
ships then can pass through the canal
on the long routes to the west coast of
South America.
AS in other bills presented, it is
proposed 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 t$4) as is now paid
for service on vessels of the first class
between the United States and Eu.
ropean ports.
In order to serve the new commerce
which it is expected the canal will
open for the Southern states it is pro-
yided that if more than one line is es-
tablished from the North Atlantic
coast one of the lines shall touch at
least one port south of Cape Charles
for mail, passengers and freight on
the outward and homeward passages
A provision, which is new in subsidy
bills, forblds the award of any con.
tract for an ocean mail line to any bid.
der engaged in competitive transporta
tion by rail, or in the business of ex
porting or importing merchandise
Moreover, the postmaster general is
directed to cancel any contract, the
performance of which shall rest with
in the control of any competitive rail
road company, or any person or per
sons in control of the same through
stock ownership or otherwise
Limited to $4,ooo,ooo Annually.
The postmaster general is directed
also to cancel any contracts held by
any person who gives undue prefer.
ence to any particular persons, cor.
porations or locality, or any particular
description of traffic.
The total expenditure in any one
year under the bill is not to exceed
$4,000,000 and shall not, in any case
exceed the amount of revenue re-
over and above the amount otherwise
paid for such service.
The trainers of the bill believe that
1t will break the present monopoly In
ocean transportation between the
United States and the principal coun
tries of South America. 1t is regard
ed as likely to create at least two
lines from the Atlantic coast to Brazil
and Argentina and a line from Puge,
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 speed of al
least sixteen knots an hour and with
a gross tonnage of from 5000 to IL,
900. to be built on designs approved
| by the navy department.
Under the terms of the contracts
| the ships would have to be turned
over to the United States government
| in times of war. Not one American
steamship Is now running on any o.
| tho rnttac anyorad bv tho hill