Evening star., 1915-01-10

CluD Oh C41C1&Os
CHICAGO, January 9.-Secretary Nc
Adoo declared tonight in a speech to
the Commercial Club Of Chicago that
the administration ship purchase bill
now pending in Congress offers the
only solution of the problem OF how to
build up an adequate American mer-
chant marine. 1t promises. he said, to
overcome many Of the obstacles the
European war has .nrust in the path
of American trade expansion and to
help prosperity.
The creation OF an American mer-
tisan question, but a policy which has
democratic and republican parties for
thirty-five years. Failure Of the re-
publican party to legislate to that end
in twenty years of power, he said,
showed it the more culpable.
Present Plan Held Folly.
THE democratic party" he added.
now has the power to legislate, and
it will be equally culpable II 1t fails
to act. 1t will be even more culpable
If it does nothing. since the emer-
gency created by the European war
has emphasized, as nothing else could
have done, the supreme folly of sub
great nation to the hazards of ocean
transportation under the flags of ma
tions now engaged in the most gi-
gantic war of all time. Regardless OF
these hazards it Is even greater folly
from an economic point of view to
inn al he foy- (,f -
ing to build up a great foreign trade
by leaving to our rivals the control
of the vitality important instrumentaH-
ties OF ocean transportation. So long
make the rates, they control the serv-
ice and they determine the routes.
With this power it is easy to favor
their own commerce and discriminate
against ours.
$50 long as England commands the
sea our commerce will not be stopped
But who can foretell the eventualitiet
of a great war? 1t is conceivable tha,
a daring German squadron might gel
into the Atlantic and play havoc with
our commerce in British bottoms. Nc
one can tell how long the war will
last and every day that 1t continues
our foreign trade is subject to its
vicissitudes and dangers. Is 1t fair te
our producers, our merchants and ouI
manufacturers to force such risks upon
prosperity of our country in needless
jeopardy"
Freight Rates Increased.
The Secretary pointed out that the
withdrawal of 13 per cent of the worlds
total steam tonnage-which before the
war amounted to 45,400,0o0 tons-had
operated to increase ocean freight
rates in unprecedented fashion. The
lack of American bottoms and the
fact that neutral ships cannot be de-
pended upon has practically destroyed
the trade of the United States with
some of the belligerent nations in non
contraband articles. Mr.. McAdoo re-
ferred to the increase in rates and said
that on all commodities 1t has amount
ed to between so and 300 per cent,
whether cargoes were for English, Eu-
ropean or Mediterranean ports.
These enormous increases" he said.
CONSTITUTE a heavy tax on the Ameri-
can producer. They are reflected in the
lessened prices which he has been
compelled to take for his product. Tho
increased cost OF carrying American
produce and commodities to European
ports since the war broke out runs into
millions.
This great sum represents a heavy
toll that has been exacted by foreign
steamship owners from American ship
pers and producers. 1t is, In erect.
nenalty they are paying for the failure
Of American politicians to carry out
their repeated promises to the Ameri-
can people. Foreign owners may In
crease their rates over night. arbi-
have no power to prevent
our shipments. Already our commerce
is being injured and our prosperity is
being retarded by the relentless hand
of tribute which lies heavily upon 1t
it with each day that passes. because
ocean freight rates are still rising"
Chance to Get Trade.
opportunity to grasp large amount
Of trade is knocking at the door Of the
,ation." the Secretary declared. but
business men must have assurance OF
,cean TRANSPORTATION under the Ameri-
,an flag, equal in quality. reliability and
with European competitors.
american trade in foreign markets.
he said. will follow transportation under
he American flag and thrive as it never
lid before. The markets Of the world
are before us-the orient as well as
South America. Enterprise and courage
are needed to secure them"
Mr.. McAdoo urged that efforts to build
IN a merchant marine through ship SUBJ
;!dy had failed, that changes in the
IA yisation laws with reduced wages to
4 merican seamen would not be tolerated
md that the policy of discriminating
ariff duties iavoring imports in Ameri-
AN ships had been proved unworkable.
;la arantees of principal and interest Of
,onds issued by private corporations en-
,aged in shipping, he said. was n2t
worthy of serious consideration The IL
ernative left to those who wish to see
he American flag flying in every port
vas in the bill now in Congress with its
nent shall own 81 per cent of the stock.
Main Objection to Plan.
The main objection to that nlan. he
pointed out. has been that 1t puts the
in the shipping business.
That. he declared, had a familiar sound.
It was argued against the federal re-
serve act. he said. that 1t would put
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