Evening star., 1921-12-04

States never has adopted the sub
sidy system. Notwithstanding the
claim of some that mail pay Is a
subsidy. The Jones shipping law of
1920 provides that for five years the
Shipping Board may annually set
aside out of the revenues from sales
and operations a sum not exceeding
$2S0O0.O0O, to be known as Its con-
struction loan fund, to be used in aid
of the construction of new vessels,
but this is not a subsidy.
The Story Of American "Subsidfes."
The story Of Americas experiment
with ship Subsidies or subventions
dates back to 1855, when. to meet
British subsidies amounting to $780,
900 annually, the United States under
took a feeble system of mail pay sub
sidy or subvention. Three American
lines to Europe and several to South
America and the Pacific resulted. This
mail subsidy amounted to 100000
annually In 1858 the law was re-
pealed, and the only American trans
atlantic line (the Collins line) went
into bankruptcy. From 1889 to 1S48
Great Britain pursued a powerful pol
icy Of subsidy The Cunard line was
backed by the British government and
ruled the ocean transportation. In
1S4S a member Of Congress said: '"The
time has come when we must decide
whether we will yield this essential
b1hnch of navigation and this. indirect
ment to our great commercial rival, or
promptly extend to our enterprising
merchants the necessary means to
compete with British sagacity and
capital" Abandonment Of postal sub
sides brought the result predicted
In 1860-1861 Great Britain paid an
annual subsidy to her shipping
amounting to s4.5s1 900. In 1864 the
American Congress granted an annual
subsidy Of $250,O00 for the establish
ment Of a monthly mail line Of
steamship service between Phi!adel,
phia and Rio de Janeiro. The United
States paid $150.000: Brazil paid $780,
900. This was in force until 1876. In
1865 the United States government
made a ten-year contract with the
Pacific Mail Steamship Company for
mail service between San Francisco
and China and Japan at an annual
subvention Of 100000.
In March. 1891, another effort was
made to revive American shipping on
the ocean by means Of mail pay. An act
'of Congress authorized the Postmaster
American steamship lines for the
transportation of mails to foreign
countries. Eleven routes were estab-
lished. costing about $954.000 annual
ly. This law was amended IN De-
cember, 1906, placing the Postmaster
General in charge of the entire pro-
gram and authorizing a bounty Of "a
per mile to American ships promising
satisfactory American ocean mail
lines to South America, Asia, the
Philippines and Australia.
Subsidies by Foreign Nations.
Between 1891 and 1908 several un-
successful attempts were made to aid
the American merchant marine by
means Of more liberal mail pay OF
subventions. In defense Of the mail
pay bill Of 1891, 1t was pointed out
that in 1890 Great Britain paid an
nually the following mail subsidies
or bounties to British steamship
lines: To Japan, China and India,
s2,50O,000; to Australia, $650.000; to
the Pacific, $4,000: to South America,
$250,000 to the United States, $780,
900; to Canada, $4,000; to- the. West
Indies, $3.50, 0,000-a total Of more than
$4,4O5,000. From 1910 to 1905, Great
Britain paid over $45,000.000 to her
ships sailing to and from South Amer
lea alone. These were mail subsidies
OF subventioIis.
The feeble congressional act Of
1891 was ineffective against such
powerful foreign competition. In
1s04-1s05 a congressional commission
headed by the late Senator Gallinger
Of New Hampshire made an exhaus.
tive Investigation of the subject and
reported in fayoE Of asystem OF SUBJ