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32 oe 42 KR A NM R26 V al ce Oy service with Great Britain at any cost necessary to obtain their object. At the present time the writer would regard the South American coast line on both its eastern and western side as being that part of the earth's surface with which we most need increased mail facilities. "To return to the heavy freighter. In coal this country - possesses the natural low-cost initial cargo, taking the place naturally of the salt-fish initial cargo of an hundred years ago. It is a large product, of unlimited amounts always avail- able upon the seaboard, which is not at our ports called for by the present ocean carriers because they get their initial cargo in England. England, Germany, and France all cluster around the same narrow coal deposits, and all send their ves- sels to Cardiff or Newcastle upon their initial voyages. The consequence is that those two ports rank in tonnage next to Liverpool, which is itself a large coal shipper. The business of your committee is to provide that Norfolk and Mobile shall get a share of the trade supplied by Newcastle and Cardiff, but remember that this can only be done by American ships, getting their initial cargoes at these or other, ports on either ocean front of our great country. "As to the means of getting this result, it may be stated that English coals sells f. 0. b., under varying conditions of market and quality, from 50 cents to $1 above American coal, but that under present conditions freights are $2.50 to $3 per ton higher from Atlantic ports of United States than from British ports. The speaker would urge that any efforts to be made by the United States to obtain this trade should not be too ambitious. The 'factor' of the United States' business is about one-fourth of that of the civilized world, and it may - be accepted that one-fourth of the coal supply could be within reasonable time secured by the United States without serious danger to existing commercial conditions. This country would come in for the natural growth of the business and it would be an actual relief to the pressure now beginning to be felt by the English mines. The problem thus narrows down as to how American labor on vessels employed in this business can be sustained at the same level as American labor employed on land. Here again the unpleasant words 'subsidy' or 'bounty' should not be used. "The American seamen is neither to be subsidized nor pau- perized, but as the revival of American shipping calls on him to meet pauperized labor on an element from which the com- petition of low-grade labor can not be shut out, there is an equity in making such dispositions, in whatever form. they may be made, should be so called as to designate their true nature, which is that of a 'labor allowance.' Among the many suggestions made to reach this end the National Board of Trade would ask your attention to the plan of allowing to such American vessels as might take out a cargo of coal a labor allowance in form of rebate to the vessel of some pro- portion--for example, 10 per cent--of the tariff charges on re- turn cargo of the vessel. Conditions vary so much in the different trades that there may be some countries where an allowance in this form, as tariff laws now stand, would be of no use. "But taking the French trade as an example, and suppos- ing our legislation to be framed in expectation of ultimately exporting one-fourth the coal tonnage of the world, then the proper share to be gained by the United States in the coal imports of France would be one-fourth of 8,000,000 tons or 2,000,000 tons. "Equalizing average differences of freight against the United States will call for a labor allowance of $2.50 per ton, making on the whole bill, if the trade be secured, an amount of $5,000,000. Now, duties collected by the United States on merchandise imported from France amount to about $40,- 000,000, on which a Io per cent rebate to cover the: labor differential would be only $4,000,000, or hardly enough for the purpose, unless on the expectation that America would only try for the cream of the business. It may not be devoid of interest to your commission to consider the business re- sults of a national output of 2,000,000 tons of coal thus gained. It would be something like the following: "First, at mines.--All inside and outside workers numbering 300, and representing the maintenance of total population of 1,200. "Second, railroad transport--On average haul to seaboard employment of 20 first-class trains constantly going and com- ing. Trainmen, section hands, and general help, say a force of 350, and representing the maintenance of population, 1,700. "Third, ocean transport.--Equivalent to not less than 150,000 steamer tonnage steadily running, employing in all not less than 2,000 men, representing population of 4,000. "Please note this estimate is made on the spur of the - moment and based on general knowledge without specific in- quiry. The financial balance sheet would be something as follows: NATIONAL INCOME, By sale of 2,000,000 tons of coal to France at $6 Pew ONe ae Moe et cr $12,000,000 DISTRIBUTION TO PERSONAL UNITS. oo tandoOw tiers fOr POyalucs. 2. sea ce tae dea ea 150,000 PPG TANCES ee ee oes oe ee ae Seen | 1,350,000 To outside mine workers, supplies, management, BUC el eee so ee 675,000 Tortauroad apo or all Giisses, 2... kee 1,875,000 ewee ob calivoad capital 6. ee he ee ies 725,000 To dock labor and vessel crews of all classes...... 2,850,000 To fuel (of American product consumed)....... 1,150,000 To American ship yard for upkeep and renewal of Peet aiG Wier esr 2s ee cen ie. 2,125,000 To profits of mine lessees and merchants.......... 1,000,000 rior aud emission excepted........,. 55.00... $12,000,000 "Obviously in the French trade a labor differential can be charged against customs in favor of vessels taking out coal to a very great general advantage. These conditions do not differ much as to any of the Mediterranean ports. In the Brazilian trade conditions are very different. Our deliveries of coal to Brazil at the rate of one-fourth her total coal pur- chases would be 250,000 tons, while our imports from Brazil come, of all kinds, to about 350,000 tons, so that total exports and imports in tons almost exactly balance. This makes a most desirable character of trade to the shipmaster, as his vessel thus goes full in each direction. The direct trade be- tween the two countries would never have slipped from American hands had it not been for the low cost of initial cargo, which British vessels had in their coal. An: English 'tramp' now will take coal from Newcastle to Rio, coffee to New York, and wheat to London, and in two or three days more is back at Newcastle again. "As we collect no duty on imports from Brazil, there is no customs margin in that trade against which a labor differential can be charged. If the commission should find that the busi- ness could not be done by express steamers running under the encouragement of a liberal mail convention, then the only available method to secure the trade for American vessels would be the creation of a customs margin by a small duty on coffee, rubber, and hides. A half cent per pound on these commodities charged to the customs and rebated to American ships would secure the trade. Your commission, from these suggestions, will perceive afresh how various are the problems involved in the reviving of American shipping. Each section of the globe, each great nation in fact, presents its own especial features, which must be studied individually to in- sure success. The probable outcome of a labor differential charged against customs, in the forms indicated by this article,