Evening journal., 1914-05-28

ternational Dictionary 70 be a grant
from the government. from muni-
cipal corporation, or the like, TO a
private person or company to assist
IN the establishment or support OF
an enterprise deemed advantageous
to the public: a subvention; and
subvention is defined by the same
authority to be the act of relieving,
as of a burden; support; aid; as
sistance; help. A government aid
or bounty II the definitions Of the
International Dictionary be accepted,
Il is evident that a subsidy is not con-
fined to a gift in the shape OF money.
but to aid, assistance. or help In any
form. As instances. we may cite the
extensive grants of land made By the
government to our transcontinental
railroads, and the donations Of land
or exemptions from local taxation so
often made by municipalities to en-
courage the location OF new enter
prises within their corporate limits
Going step further let us take the
case of a river which IS of sufficient
depth for ordinary vessels of com
merce, but which has a bar at its
mouth which renders Il inaccessible.
Now the government could make a
grant Of money to the communities
interested for the purpose of enabling
them to dredge the bar and make the
stream accessible, and It could not
! be disputed that this would be sub
| sidy, but should the government say
| No, we will not give the money di-
rectly, but will dredge the bar at our
own cost and IN our own way. IL
-
public funds would amount practical
ly to the same thing In short Mr..
! President, to my mind, any aid eX-
tended for the establishment or sup
port OF enterprises deemed advan-
tageous to the publc-whether in
the form of directed grants OF money
/ land, or other valuable consider
ations, or by the expenditure of funds
to improve our rivers and harbors-
is a subsidy, in a direct or indirect
/ form.
Another argument presented IN
support of the pending bill is based
upon the prediction that II the exemp-
/ ton from tolls be retained 1t woniu
not be Of any avail TO the general pub.
lie by the reduction of freight rates
but would simply permit the vessel
owners TO reap larger profits at tn,
| expense Of the taxpayers. Economic
predictions, Mr. President. when they
refer to special and particular cases
are somewhat hazardous. A grea
many unsound ones have been made
in the past. Many years ago Il wal
insisted that the removal OF the dutl
on coffee by the so-called Free Break
fast Table act, would be of grea
benefit to the consumer; but th'
sequel proved that all that ensueI
was that the treasury OF the United
States was the loser without an
benefit to the consumer similar in
stance was the forecast made as 4
, the loss to the cattle owners through
out the land when hides were put Ol
the free list, the fact being that afte
this action was taken the price o
hides advanced Confident and reit
Grated predictions, as we all know
have been made that the reduction il
, the tariff would greatly reduce tn
! cost of living, but up to the presen
moment these have not been fulfilled
All such economic consideration
however, Mr. President. are relativs
~ unimportant. in my Judgment, th
, chief points at issue being whethe
the exemption from tolls OF our coasi
, wise traffic was or was not viola
I ton of tle treaty. and as 10 our re
! sponsibilities to the people of thi
: country In any action which may b
: tFi-~~
, "Passing now, Mr.. President, to ii
last DranOn of my subject. in muc
more able way than ! could haN
, done, the junior Senator from Uta
, has anticipated much of what ! ha
intended to say in regard to the pr
, cedent which would be established I
, the repeal of the exemption. Shoul
l the question in dispute be arbitrate
I in the future, it is very plain, NJ
, President, that a repeal of the act e.
/ empting our coastwise vessels fro
4 the payment of tolls would be treatG
D as a confession that in enacting q
Y legislation OF August "a, 1912, we hs
. exceeded our rights and powers und
- the treaty. Should this act be repea