Evening journal., 1914-05-29

Senator dupont embodied in his speech earnest
plea for the rehabilitation Of the American merchant
marine by the granting OF subsidies, saying in part:
81 have always been strong advocate Of wise and
welconsidored OF subsidies for American COM
merce, believing this to be the only way IN whch our
almost nonresident merchant marine can be restored
TWO years ago voted against the conference report
on the Act to provide for the opening maintenance,
protection and operation OF the Panama Canal, and
when the vote taken on the motion to strike out
the clause exemptng American coastwse vessels from
payment of tolls stated that had not been paired
l would have voted Yea My action at that time was
based on belief that 81 subsidies to be granted
to our coastwise shipping il far wiser and bet
ter to grant them directly and openly by rounding
their canal tolls then to do so in the indirect way
provided I'm the act just mentioned particularly as
by the former method we would not have involved
ourselves in controversy as to the observance or
non-observance OF treaty obligations Had the in
terests of coastwise shipping been thus treated
the British government would have had no valid
grounds for objection like all other great powers II
has always granted subsidies to ts own merchant ma
rine. these subsidies being OF the factors which
have brought about the practical extinction OF our mer
chant marine.
"Now. Mr.. President 1 am aware of the that it
is alleged that an exemption from tolls is not sub
sdy and the junior Senator from New York in his very
able speech on the bill now before the Senate, has
defined subsidy "a gift of public funds from the
government TO private person corporation to aid
IN the establishment support Of enterprise deem
ed advantageous to the public; which definition, in my
Indictment is far too narrow A subsidy is defined
in Webster's international Dictionary to be "a grant
from the government from municipal corporation
the like TO a private person or company to assist
advantageous to the public mbvention and
subvention Is defined by the authority t. be the
act of relieving as Of a BURDEN support aid; as
sistance; help. government ala or bounty IL the
definitions the International Dictionary be accepted,
t evident that subsidy is not confined to gift i'm
the shape of money, but to and assistance or hep III
any form As instances we may cite the extensive
grants of land made by the government to our trans
continental railroads, and the donations of land or eX-
emptions from local taxation so often made by munich
pates to encourage the location of new enterprises
within their corporate limits Going step further
n
depth for ordinary vessels of commerce. but which mas
"a bar a IT'S mouth which renders it inaccessible Now
the government could make grant of money to the
communities interested for the purpose of enabling
them TO dredge the bar and make the stream access
ble and Il could not be disputed that this would be
subsidy but should the government say No we viii not
give the money directly but will dredge the bar at our
cost and in our own way 1t seems to me that such
expenditure of public funds would amount practically
to the thing. In short Mr. President to my mind
any aid extended for the establishment or support OF
enterprises deemed advantageous to the pubhc-Wheth
er I'm the form directed grants of money, land or
other valuable considerations, by the expenditure
of funds to improve our rivers and harborsis sub
sidy, I'm direct or indirect form
Senator dupont deprecated the argument in favor Of
the Wilson repeater that If the toll exemption be re-
tanned It will benefit the general public by the re-
duction Of freight rates but simply permit the
vessel owners reap larger profits at the expense of
the taxpayers. Then he said pointedy
Economic predictions. when they refer to special
and particular cases, somewhat hazardous
great many unsound ones have been made in the
past"
He then proceeded to cite instances to prove the
truth of his assertion, thus showing how carefully
/ and accurately in the past he had kept himself in
formed with respect the drift and effect Of national
legislation Nor did he fail to include the Underwood
tariff law in the list
Confident and reiterated predictions we all
know have been made that the reduction in the tariff
would greatly reduce the cost living but up the
present moment these have not been fulfilled" he
said "Al such economic considerations, however. Mr..
President relatively unimportant, in my judgment
the chief points at issue being whether the exemption
from tolls of coastwise traffic was was not a
violation of the treaty and to responsibilities to
the people of this country in any action which may be
taken
Contention was made by the Delaware Senator that
should the tolls question dispute be arbitrated
the future it is very plain that repeal Of the act
exempting coastwise vessels from the payment OF
tolls would be treated confession that in enacting
legislation OF August "a. 1912 had exceeded
rights and powers under the treaty. In addition, by
such repeal. there would be a needless sacrifice OF
liberty of action and a compulson to depend upor
direct money subsidies If It be found necessary here
after to help the American merchant marine
Surprise quite naturally expressed by Seantoi
dupont that President Wilson had failed to accep
the suggestion of the British Government that the
tolls dispute be submitted for arbitration The Sena
also made it clear that he, for one would be glad
TO it referred for adjustment to the proper ri
bunal He emphasized the we-known fact that th
question is both difficult and delicate and that arbitra
tion would be emnenty proper solvent Com
plant made by Senator dupont that Presiden
WILSON, in urging the unconditional repeal of the toll
exemption provision seeks to absolutely tn
Judgment Of the preceding national administration
which the Senator characterized as being especially
equipped to interpret the question properly, in view
the eminent legal aainments of the President hi
Secretary Of State.
Senator dupont did not question the right Of Pres
dent Wilson to take whatever action in the premise
he might deem proper. He did question, however.
many others have done, he soundness of the iude
ment of the President and characterized his repeal
misleading and unsatisfactory because IL faie
10 mention the British notes complaining that the
OF 1912 violated the HayPauncefote treaty ignore
the British arbitration proposals. In conclusion tn
Senator said