The Birmingham age-herald., 1913-06-05

Underwood Explains
"Other countries discriminate in favor
of their ships" said Mr.. Underwood,
''and l believe in the democratic prin-
ciple of discrimination in favor of Amer
lean ships in our tariff duties. 1t was
the policy of the fathers; it built up our
merchant marine from a point where it
was carrying II per cent of our commerce
to point where 1t was carrying 80 per
cent of American commerce in a period
of seven years.
1T does not place additional burdens
upon the people; it is not a policy Of
doubtful constitutionality; it is policy
that has been tried and proven effective
1t is a policy by which we can restore
the American flag to the seas and the
American ships to our commercial trade
1t is a policy that will enable us to build
up the export trade of the American peo-
pie. 1t is a policy that will enable us to
find foreign markets for our surplus prod
ucts in agriculture and manufacture. 1t
Is a policy that will restore the balance
of commerce as well as trade to our ma
tion. 1t is a policy that will ultimately
overcome the necessity of our paying a
foreign balance in gold to European ma
tions and will bring prosperity to all lines
of industry
The above is from a speech by Mr..
Underwood, delivered in the House, Feb
ruary g. 1910, on American Ships and
Foreign Commerce"
Violation of Treaties
OF course, the reason assigned for re-
moving this clause from the Underwood
bill is that 1t violates treaty obligations
Mr.. Underwood in his speech quoted from
a pamphlet issued by William w. Bates,
president of the Shipping Association of
America, and said: There is no man in
America better advised and Informed on
these questions than Mr.. Bates" In this
pamphlet Mr.. Bates takes the position
that the agreements amount to nothing
and have long since terminated, and that
1--WE relinquished no rights whatever by
granting a privilege for term of years :"
| Further he charges: Besides, in point
of fact our rivals have paid no attention
| to the spirit and true object of these
conventions. the doing without ship pro-
lection. On the contrary, all of them
have resorted to protective devices of
| some sort"
| This is quite true. 1t would be hard to
| find a foreign nation which does not in
| some manner discriminate in favor of its
ships Germany subsidies her mail-car-
rying vessels and on all government rails
in the empire freight to ports designed
for German vessels is carried 80 1-3 per
| cent cheaper than freight for foreign
ships. England puts up large bonuses for
| the building of ships that fly the British
| flag and in every possible way encourages
| ler merchant marine All other coun-
tries follow some policy of this character
| except the United States, and the result
| is seen in the statement that since this
government has abandoned the policy OF
discrimination in duties ON foreign goods
in favor of American ships the American
| flag, which once dominated the seas in
commerce, has practically disappeared.
Advantage to Americans
A reduction of the tariff of per cent
on all goods imported into the United
States in American ships would give the
American ship owner an advantage over
| the foreign ship owner in payment OF
duties of from 10 to 10 millions of dollars
annually. This would not fall as a bur-
den on anyone; it, of course, would en-
able the American ship owner to charge
nearly the amount of the discriminating
| duty as additional freight Rates but ii
would not increase the cost of the goods
imported in this country dollar over
| what they otherwise would be.
| AS to the Presidents position, his con-
| sent given to Senator Simmons to cut
| out this clause was conceded because OF
| the treaties and because he thought that
we were bound by them. There are, how
| ever as has been pointed out, good au
thorities on International law who do not
| agree in this viey. In addition to this
| there can be no question of the right oi
| Congress to repeal such treaties If the5
think it wise to do So This question was
decided by the supreme court in the Chi
nese exclusion act.
| In the meantime it is quite certain. tha
when the bill goes to conference betweei
| the two houses that the confeFees on tht
part of the House will insist upon tn,
clause or one similar to it remaining il
the bill.
OF course, it is impossible to say jus
how this clash will terminate but it Is
safe to say that the House will not reced,
without some definite understanding thai
something will be done for the benefit OF