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1900) MARINE REVIEW. _ | SENATOR FRYE ON THE SHIPPING BILL. HE DENIES THAT IT HAS BEEN ABANDONED--THE REPORT OF THE DEMOORATIO MINORITY IS FILED--AN ARGUMENT IN FAVOR OF FREE SHIPS IS WHAT IT AMOUNTS TO. It was brought to the attention of Senator Frye a few days ago that certain eastern papers were claiming that the shipping bill had been abandoned at this session. "As chairman of the committee which reported the bill,' said Mr. Frye, "I think if it were to be abandoned at this session I would know something about it. But I have no such information and neither has anybody else. I expect to see the bill passed in the senate at this ses- sion. There is a strong and increasing demand for it. The measure is of vital importance to the interests of the nation. Our consuls are re- porting trom various parts of the world the need of American steamship lines. Republican conventions are reiterating their demands for the passage of the bill and the party will redeem its promises in that respect." The minority report cpposing the bill has been filed in the house of representatives by the inajority of the members of the democratic minority of the committee on merchant marine and fisheries. Repre- sentative Fitzgerald of Massachusetts drew the report which was signed also by Representatives De Vries of California; Daly of New Jersey and Speight of Mississippi. Three other democrats of the committee-- Messrs. Chandler, Small and Ransdell--have heretofore submitted their views, upholding the general principle of government aid to the mer- chant marine, but pointing owt defects in the bill. The present report therefore represents the opposition to the measure both in principle and in detail. Jn the main it is an argument against government subsidies, and asserts that most of the proposed $9,000,000 subsidy will go to a few favored concerns, without building up American shipping in general or encouraging American exports. The report quotes a recent utterance of President McKinley on the remarkable increase of our ship building, and says in part: CLAIMS OF OPPONENTS OF THE MEASURE. "Our foreign trade, then, is increasing with wonderful rapidity and our ship building industry is remarkably prosperous without subsidy. Why, then, should the whole country be taxed to provide gratuities to industries which are now prosperous and which have every prospect of continuing to be more and more prosperous? Even if our foreign com- merce were in a declining rather than in a fairly prosperous condition, it is improbable that the present bill would give any relief and for the following reasons: "Because subsidies are graded according to the speed and capacity of ships, and are more than twice as high per ton of capacity for the swift passenger steamers, which carry but little cargo, as for ordinary freight steamers, which carry 80 or 90 per cent. of our exports. The subsidy, therefore, if it affects rates at all, will affect passenger rather than freight rates. As only about 5 per cent. of the total tonnage of the world's shipping is subsidized and as nearly all of the present subsidy goes to passenger and mail steamers, the hopelessness of trying by subsidy to lower freight rates and increase commerce is apparent. Un- limited subsidy would be necessary to lower general freight rates. If any one country attempts by subsidy tc secure lower rates the subsidy must go t6 all ships carrying freights. Otherwise the moment the few subsidized ships lower rates for one country the unsubsidized ships (tramp steamers, etc.), will withdraw to other service and rates for this particular country will go back to the world's level. Hence it is prac- tically beyond the ability of any one country to materially reduce by subsidy its ocean freight rates and in this way to increase its foreign trade. "The 'bill does not sufficiently provide for subsidies based upon the amount of freight carried, nor does it require any decrease in freight rates. It cannot be shown from the history of subsidies that they ever materially lowered freight rates or increased the commerce of the coun- tries granting them. Trade conditions and not trade theories fix the rates which shippers. will pay, and which ship owners can get. Neither does the history of subsidies show that any country has ever built up its merchant marine in this way. Our expenence with the Collins, Brazil and Pacific mail lines is the present experiences of France and Italy and the past experience of all other countries which have given real subsi- dies. As the government could not under the proposed law, take Ameri- can ships for cruisers or transports on any more favorable terms than it can now obtain them, viz., by paying for them all they are worth, it will on this score get nothing in return for its lavish subsidy expenditures. Neither is there anything in the bill which would provide American sea- men for our national defense. In no way, then, would this bill provide for the national defense. On the contrary, by draining $9,000,000 a year from our treasury it weakens our national defense by taking money which might otherwise be invested in more ships or in transports, pro- visions, ammunition, etc., in case of war. "Such a large amount of subsidy practically put at the disposal of the few who benefit by this 'bill cannot but tend to unite, even more closely than now, the great ship building, ship owning and railroad interests concerned in this measure. By the time these few interests bring in their foreign-owned ships and get their ships now being built into the subsidy race the $9,000,000 limit will undoubtedly be reached. Hence it will be to their interest 1o combine to stop competition and to prevent their subsidy rates and profits from declining. We believe that such a combination would be completed soon after the passage of this bill. We place no faith in the anti-trust amendment. All the federal and state anti-trust laws now in existence have proven futile and have not les- sened the rapid growth oi trusts. We see no reason for thinking that this anti-trust amendment would prove more effective. By this bill, 'which professes to be intended to increase the exportation: of American produce, the government is asked to pay to the stockholders of a single steamship line $1,500,000 a year for carrying abroad in its four first- class passenger ships, not American products, but American tourists, who can afford to travel and spend their money in Europe. That is, the government is asked to pay, not for the exportation of American produce, but for the exportation of American customers." : ae The report contends that even if subsidies are justifiable in building up an enterprise, such as the Pacific roads, yet there is no justification for "a reward to existing lines." GENERAL SUMMARY OF OBJECTIONS. As showing the proportions of the proposed subsidy, it is stated that $9,000,000 a year "constitutes interest upon $450,000,000 at the rate now yielded by our government bonds" and it is urged that the govern- ment could better afford to use this aggregate "to build ships and give them away than to make the donations provided in this bill. It is stated that $250,000 would go to ships over twenty years old and therefore en- courage the running of these old ships, for the sake of subsidy. until they go to the bottom with crew and cargo. The report, while it does not advocate the free ship theory, points out that in its investigations it found that every nation except the United States allowed its citizens to purchase ships where they please. In answer to the proposition that other nations are increasing their shipping by subsidies the report claims that Great Britain, which has the largest shipping, subsidizes less than 3 per cent. of her tonnage, and this is on mail subsidies except $1,073,000. The report contains what is stated to be the actual figures of operating the St. Paul of the Anchor line, and Campania of the Cunard line, showing an increased cost of running of the former of $15,900 per year, and this, the report states, would be met by a subsidy of about $409 000. The report quotes from the manifests of a number of freight and passenger ships showing that the freighters which carry the product of the farm and warehouse receive about one- fifth that of the passenger craft. In conclusion the objections are summed up as follows: . The objects professed in the title are entirely forgotten in the body of the bill. 2. It is reasonably certain that the most of the subsidy would go to lines already established and prosperous. 3. Under this bil the ordinary freight steamers, which carry 80 or 9G per cent. of our agricultural exports, will get but a fraction of the amount of subsidy which the passenger steamers would receive, although the latter carry less than 10 per cent. of our agricultural exports. 4. Under this bill a ship can run practically in ballast and draw sub- sidy. We believe that when freight is not promptly offered it will pay a certain class of ships to run empty rather than to wait for cargo. 5. This bill would tax all our citizens to provide extra profits for a favored few in this favored industry. 6. The professions of this bill are insincere and its principles are unsound. We believe that the best interests of this nation do not demand the passage of this or any similar bill. ACTIVITY IN PACIFIC COAST SHIP YARDS. There is considerable activity in ship building on the Pacific coast. Numerous new craft, built for the Alaska trade, are the center of inter- est. Owing to the high price of material and limited capacity of iron ship yards, and particularly the difference in cost 'between metal and wood, nine-tenths of the new craft are constructed of Washington and Oregon fir. Among the new steam schooners that have been fitted with tem- porary passenger accommodations is the Robert Dollar, the largest steam schooner yet built on the west coast. She has a lumber capacity ot 750,000 feet. The steamer Santa Ana, built in Oregon, has triple ex- pansion engines, 13, 23 and 88 inches diameter with 80 inches stroke, made by the United Engineers Works of San Francisco, a young but growing concern which is making a specialty of marine work and which ig under the necessity of enlarging its plant owing to the increase of its orders. The tug Meteor is another new production, built for use of the Alaska Exploration Co., in the vicinity of St. Michaels. She is 85 feet over all, 16 feet beam and 6 feet 2 inches depth of hold, with compound engines 'built by the United Engineers Works, and Scotch marine boilers, built by the Keystone Boiler Works. She has had her trial trip and is ready 'for sea. The Nome City, the most pretentious of the new craft, was built by Dixon of Oregon--his one hundredth hull. She is of good model, sub- stantially 'built, planked solid to the spar deck, with modern conveniences, and all available cabin space that she can have, the staterooms covering three-fourths of the spar deck. The main deck will be used in these early trips in Nome trade for second-class passengers somewhat, but mostly for cargo. Numerous large head lights supply ample light be- tween decks. This vessel is equipped with engines of 13, 23 and 38 inches diameter and 30 inches stroke, and Babcock & Wilcox boilers. On the whole the Nome City is one of the finest wooden combined passenger and freight steamers yet built on this coast. | , The Californian for the American Hawaiian line (main office in New York), built by the Union Iron Works, San Francisco, was launched last Saturday. The same company has contracted with the Union Iron 'Works for another steamer to be 489 feet on the water line.. The ferry boat contracted for by the Santa Fe railway with the Union Iron Works is not yet in frame, but much of the material is ready and shortly will ibe set up on the stocks. The steamer is intended almost exclusively for passenger service and will have all modern improvements. The Union Iron Works have plans for a new addition to the Saucilito line in the shape of a ferry. Capt. Scott and others of Seattle are building a new screw passenger steamer 'for the Seattle-Everett route, which will 'be about 125 feet on the waterline and 22 feet beam. A branch office has beer opened in Denver, Col., by the Bethlehem Steel Co., with Mr. C. S. Burt in charge. Mr. Burt was formerly presi- dent of the C. S. Burt Co., Ltd., of New Orleans. The latter company will continue to represent Bethlehem interests in New Orleans, but Mr. Burt's health having obliged him to change climates, he has established an office in the Bank block, Denver, and the Bethlehem company has arranged with him to look after their affairs in that city. The Nickel Plate road offers special low rates to Milwaukee, Wis.. account biennial meeting General Federation of Women's Club. Tickets sold June 1 to 4 inclusive; good returning until June,11, or by deposit until June 30 inclusive. Call on or address E. A. Akers, C. P. & T. A., Cleveland, O., or C. A. Asterlin, T. P. A., Ft. Wayne, Ind. 68 June 4.