The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-11-02
AMERICAN MERCHANT MARINE

.hc government will lose money in this
f, business.
! This argument has been their favor
lite ono. The bugaboo oil Increased
taxes. loss OF the initial Investment
every three years" and much more of
thersnme nature. has been circulated In
| an effort to defeat the bill.
The shipping business is one OF tho
| most profitable In the world Special
napiomatic and Consular Reports
| page 30, saws:
The White Star Line. in 1910 earned
! net profit OF $4,000 pounds sterling
OH Il capital of 100000 pounds sterling
AFTER writing off 37OO16 pounds ster
I nng for depreciation. A dividend of
80 per cent was paid in that year"
The Holland America Line earned
about so per cent net on its canit,,
| curing the fiscal year OF 1918. The
hamburg American Line earned about
80 per cent net during its fiscal wear
Oh 1918 These are only a few spe-
enc instances of steamship line earn
inss They are not Mt alI unusual. but
are the regular thing in the shipping
business. e
i. +. Dixon < Co.. Of London. who
/ own and operate a large fleet of
tramp" freighters, showed earnings
Oh ABOUT 90 per cent net last year
| winch proves that steamship earnings
are large I'm the irregular services as
well MS In the regular lines In fact &
the profits OF the steamship business
are 80 large that frequently the en-
/ tire cost of n ship Is earned In two
years
| The question will arise, why have
not Americans gone into such profit
able business? The answer Is. for the
same reason that Americans have neg
iected the vast foreign export trade
they have been too busy with their in
dustries at home.
! But, unlike the export trade, which
each manufacturer can work UP in
Individually, to establish an ADEQUATE
/ merchant marine is SO large an under
taking at this time and involves SO
large an amount of money that IL it.
is to be done at oil, 1t must be done
! by the government.
RIGHTS AS NEUTRAI.s
/ AS WELL AS DUTIES
4 CD Opponents to the bill say that
there will be danger Of the United
State violating neutrality II it operates
merchant ships ut this time.
| The report of the Committee on the
Merchant Marine says:
I'VE have rights as neutraIs, as we'll
as duties to be be observed
The President will have tho State De-
partment to advise him on all ques-
tons affecting our rights and duties
as ncutrals. = . We should sas,lme
that the President and shipping board.
In the exercise of any powers grant
ed or duties imposed by this BILL will
keep we'll within our rights as neu
trails"
90 Opponents to the bill make an
alternative proposition that we should
build up an American merchant marine
| Ey granting subsidies.
Subsidy seekers have managed to
create a belief that the merchant ma
rines of European countries. especial-
Mt rly,a .pS
greatest maritime countries In the
world. Great Britain and Germany, have
been built up by granting subsidies TO
/ Its shipping. Neither OF these coun-
tries grant subsidies, except to very
limited extent and for. very special
service.
the Hamburg american Line, the
largest and perhaps the most success
ful steamship company in the world,
has never received a subsidy. A mod
crate subsidy was granted by Great
Britain to the Cunard Company I'm con-
hection with the steamers Mauretania
and Lusitania, but that was chiefly TO
Keep the Cunard, Company from selling
out to the international Mercantile
Marine, the combination organized by
j. r. Morgan & Co. over 90 per cent
OF the total tonnage OF Great Britain
does not receive farthing of subsidy
1t will surprise many to know that
the United States pays n larger sub
oitS " iOuT american SnlpS--OWned by
the International Mercantile Marine
namely. the New York, Philadelphia
st. Paul and ST. Louis, than Is paid by
any foreign nation for similar service.
This country pays to these ships an
annual subsidy of about s735.000, and
obtains practically nothing in return
for this. except the carrying Of the
mails on these steamers, which,, at
regular rates. would amount to only
trifling fraction of the amount of
the, subsidy. As n matter of fact, most
OF our mail goes forward on foreign
ships, as they are much faster and they
sail more frequently. the subsidized
American ships being among the
smallest and most out of date steamers
In tho north Atlantic trade. 81
The extraordinary large profits In
the steamship business show that
steamships can be operated probably
under the American flag without a sub
sidy. In spite OF the somewhat higher
American seamen,, ,.s s. , q