Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-01-26
Tuesday, January 20, 1915.
Government Owned Shipping.

The Washington evenings Of late
have been filled with party caucuses,
Democratic caucuses, il you please.
Senate democrats have been meeting
evening after evening to caucus upon
the Presidents ship purchase bill ana
try to perfect the text SO as to COM
mand unanimous party support. That
is the Democratic method OF operatin:.
in the Senate under stress. There
was prolonged caucus on the IN
derwood tariff bill in the Senate 1t will
be recalled. Then there was eau
Gus on the Federal Reserve Board bill
and on other notable administration
measures. The many provisions vera
discussed in private and the sentiment
Of Democratic senators obtained. =
From the President down it is now
is a losing proposition. But the Presi-
dent is SO strongly pledged to it. and
have his own way, that hope Of avoid :
ing an extra session of Congress is
Of moral support Of those in the
United States Senate who oppose the
bill, is growing, and every day the
fallacy Of the proposition becomes
more evident to all the people. The
tics. says:
Is there a shortage in shipping
which requires the government to
come to the rescue of American COM
merce by building or buying ships?
Steamship men insist that there Is
nc shortage. They admit that rates
are high, but they suggest that the de-
mands Of European nations for sup
plies are so insistent that increased
rates naturally follow, especially in
view Of the withdrawal of German and
Austrian vessels from the seas. The
rates to European countries are from
SO to 500 per cent. higher than they
were before the war. From the United
States to South America the rates
have increased somewhat. on account
OF higher insurance rates, etc, while
the rates to Asia are hardly above
normal.
The increased rates, however, are
temporary. The government could not
count upon receiving the rates that
are now paid. At ttte end of the war.
with more shipping released and the
wars demands satisfied, rates would
tumble, probably below normal. The
government lines would then be facing
hard times. and ships owned by in
dividual Americans would be driven
out Of business. Probably the United
States Treasury would be drawn upon
to prevent a deficit in the government
steamship business.
Cotton is going forward to Europe
in nearly normal quantities. Wheat.
horses, and other supplies urgently
needed by warning nations are being
shipped in unprecedented quantities
Evidently there is no lack Of ships for
this very lucrative trade
AS for South America, shipping men
SiACA NSSSCio loi t&lI the IlldC IS
in sight. The United Fruit Company's
steamers come to this country loaded
with bananas, and return to Central
and South America empty. The presi-
dent OF that company recently testified
that he would make special rates to
any American exporters who desired
to ship goods to South America.
Is 1t the cost of shipping, and not
the scarcity, that calls for a govern
nlent-owned line? Then the govern
ment must be prepared to meet for
eign competition. In peaceful times
foreign ships are operated much more
cheaply than American ships. This
is accomplished by the employment OF
Lascar and Chinese crews, and by
reasons Of more lenient shipping laws
in foreign countries. Would the
United States government employ
Chinese crews. or would it employ
Americans at the American rate .,
wages? If it did the latter, it would
have to charge higher freight rates
than its foreign competitions. or make
up the difference out Of the Treasury.
That Mysterious Democrat,