Evening star., 1916-06-27

interest or without interest at all was
begun. it is believed. by Austria The
British government did 1t for the
Cunard line in 1903. lending the COM
pany s12,652,900 to build two steam
ships that would be the fastest afloat
and suitable for use by the admiralty.
If needed. The interest rate charged
was 2& per cent. which was about 2
per cent lower than the rate charged
in open market.
Denmark and Belgium have been the
only important countries to extend aid
by granting exemption from or refm-
bursement of port dues. Belgium. for
many years. reimbursing the North
German Lloyd, the Kosmos line and
the United Steamship Company of
Copenhagen for pilotage fees, port dues.
etc. paid to the Belgian and the Dutch
officials. Denmark withdrew the privi-
lege from the favored lines in 1910.
The practice of granting indirect aid
tuted by Russia in 1879. It is now fol-
lowed by the reimbursement of the full
amounts paid by Russian steamers
bound for or from ports on the Indian
ocean and non-Russian ports on the
Over 81, 600, 900 in Reimbursements.
From 1879 to 1906 the Russian gov
ernment expended s4,4OO,Ooo in the re-
endorsement of Suez canal dues. The
Austrian government reimburses Suez
canal dues paid by the Austrian Lloyd; {;
the Swedish government, under con-
tract releases so per cent of the Suez
canal dues to the Swedish East Asiatic
Company: paid in 1915; So per cent cent Of Of
those paid in 1917. Italy refunds all
Corinth canal dues paid by one of her
lines. and the French government the
Suez canal dues paid by the Compagnie
deS MeSSa geries MaritimeS.
Exemption from taxation is another
form of indirect assistance. 1t is
granted by Austria and a few of our
own states, notably New York, which
exempts from all taxation for state and
ships registered at any port in the
state, If engaged in the foreign trade
of the United States Corporations
owning such ships are exempt until
upon their stock, franchises and earn
ings. Alabama exempts all ships en-
gagged in foreign commerce, and Wash
ington all ships built or in process of
as for foreign trade of the United
States.
Great Britain was first to grant
postal subventions, which policy ante
dates the bounty or subsidy system,
her first contract being made in 1888.
The United States followed in 1S47.
France in 1851 and Germany in 1886.
in case of the North German Lloyd line.
Purposes of Subventions.
The purpose of these subventions is
primarily to encourage the maintenance
of fast mail service on regular routes
and schedules. Another purpose is to
secure the quickest communication be-
tween the mother country and her col
onies; another to provide auxiliary
cruisers and transports In time of war,
and still another is to foster domestic
shipbuilding, the subventions being linn
tied to domestic-built ships. With but
two important exceptions all financial
aid from the British government has
been in the form of postal and admi-
rally subventions. The United States
and Germany grant only mail subven-
tions, although the Hamburg-American
line. the largest of the German COM
panies, has received comparatively lit
tie financial assistance from the Ger
man government
Direct general bounties or subsidies
to shipping lines were instituted in
France in 1881, and the results. the re-
port states. as whole have not been
satisfactory. Italy, Austria-Hungary.