Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-01-10
PURCHASE BILL
IS ONLY SOLUTION
McAdoo Discusses Problem of
Building Up Adequate Amer
lean Merchant Marine.
MAKES SPEECH AT CHICAGO
Matter Not a Partisan Question,
but Policy Long Endorsed
by Both Parties.

the commercial Club of Chicago thai
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. It promises he soid r.
overcome many of the obstacles the
european war has thrust in the nath
OF American trade expansion and ia
help prosperity.
The creation OF an American NOR
chant marine, he argued, Is not n narti-
san question, but policy which has
received the Endorsement OF both the
Democratic and Republican parties for
thlrtE-hVe years. Failure OF the Re
publican party to legislate to that end
in twenty years OF power. he said
showed it the more culpable.
The Democratic party" he added
now has the power to legislate, and It
Will be equally culpable il it fails. to
act. 1t will be even more culpable, IL
II docs nothing. since the emergency
created by the European war has en-
phasized, as nothing else could have
done, the supreme folly of subjectins
the foreign commerce of this great ma
ton to the hazards of ocean transpor-
tation under the flags of nations now
engaged In the most gigantic war of all
time. Regardless OF these hazards 1t
is even greater folly from an economic
point OF view, to continue deliberately
the policy Of trying to build up a great
foreign trade by leaving to our rivals
the control OF the vitality important in
strumentalities of ocean transportation.
SO long as our competitors own the
ships they make the rates, they con-
troll the service, and they determine
the routes. With this power it is easy
to favor their own commerce and dis
criminate against ours.
$50 long as England commands the
sea, our commerce will not be stoned
But who can forcteil the eventualities
Of a great war? It Is uncomfortable
that daring German squadron might
get into the Atlantic and play havoc
with our commerce in British bottoms
No one can tell how long 4l,e war will
last. and every day that 1t continues
our foreign trade is SUBJECT TO Its vi6is.
STUDIES and dangers, Is it fair to our
producers, our merchants and our man
| ufacturers to force such risks upon
| them? Are we justified in putting the
prosperity of our country in needless
jeopardy"
UNPRECEDENTED INCREASE
IN OCEAN FREIGHT RATES
withdrawal of Is per cent of the worlds
total steam tonnage-which before the
war amounted to 45.400,000 tons--had
operated to increase ocean freight rates
in unprecedented fashion. The lack OF
American bottoms and the fact that
neutral ships cannot be depended upon
has practically destroyed the trade of
the United States with some of the bell
ligerent nations in noncontraband arti-
cles. Mr.. McAdoo referred to the in
| crease In rates. and said that on all
commodities il has amounted to be-
tween so and 300 per cent, whether car
goes were for English, European or
Mediterranean ports.
These enormous increases" he said
Constitute a heavy tax on the Ameri
can producer. They are reflected i'm
the lcssencd prices which he has been
compelled to take for his product. The
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 eXactcd by foreign
steamship owners from American shfpi
pcrs and producers. II is, in effect, a
penalty they are paying for the fail
ure Of American politicians to carry
out their repeated promises to the
American people. Foreign owners NAV
! increase their rates overnight. arbi-
trarily-we have no power to prevent
it--and we must pay the price or stop
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.
ana which will lie more heavily upon
it with each day that passes, because
ocean freight rates are still rising"
OPPORTUNITY KNOCKING
AT DOOR OF NATION
Opportunity to grasp large amount
OF trade Is knocking at the door Of the
nation. the secretary declared, but bust
ness men must have assurance of ocean
transportation under tho American
flag. equal in quality, reliability and
regularity with European competitors.
american trade I'm foreign mark ets,,,
he said, will follow transportation UNI
der the American flag and thrive as Il
never did before. The markets OF the
world are before us-the Orient as well
as South America. Enterprise and cour-
age are needed to secure them"
Mr.. McAdoo urged that efforts to
build up n merchant marine through
ship subsidy had failed, that changes
i'll the navigation laws, with reduced
wages TO American seamen, would not
be tolerated, and that the policy of dis
eliminating tariff duties favoring inn
ports In American ships had been
proved unavoidable. Guarantees of
principal and interest OF bonds issued
by private corporations engaged In
shipping. he said, was not worthy OF
serious consideration. The alternative
Ia IN NH 81 oh to 81
American flag fying in every port was
I'm the bill now In Congress, with Its
private corporation, OF which the gov
eminent shall own 81 per cent OF the
stock.
The main objection to that plan,s he
pointed out, has been that IL puts the