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68 requirements permit that shipments shall be made in American vessels when no greater charge is demanded, it is its duty to ship in American vessels when offered rates equal to those customarily paid by private parties, thus I beg to state that our presidents were wrong in their de- cision that because American owners demands were 50 per cent greater than those of foreign vessels, that the business should be given to foreign vessels, because the American rates were excessive and unreasonable. It is to be assumed that we are on an American basis. for our government to look to London for quotations of freight rates, which rates shall in any way affect those made by American shipowners. It is fairer to our shipping if customary rates in existence in the trade con- cerned are offered rather than to con-. sider those rates made by foreign in- terests for the purpose of further crippling our already demoralized merchant marine.. I observe it was included in the record that the rates quoted the government run from $3.35 to $3.50 per ton, which statement ap- pears on pages 324 and 325. As a fact those are the lowest quotations. the government ever received for delivery to San Francisco, Puget Sound and the Hawaiian Islands. Those are the rates made for the twelve or fifteen vessels which came to this coast the last fialt of 1909. Prior to that time their tenders were similar to $4.50 to $5.15 per ton, while on Dec.' 18 those tenders received from foreign ship in- terests for the same service, ranges from $4.50 per ton to nearly $7.00. In fairness to the American ship- owners' quotations, it should have been shown in the record that those rates named above included bare transpor- tation only, that the government pays in addition thereto the cost for trim- ming and loading, port charges en- route;stevedoring, discharging and it waives customs dues at the port of shipment and delivery. It would have been a good plan to have had it shown in the record that heretofore the department has required its vast shipments to be made upon short notice and in quick time, for instance 75,000 tons of coal was de- _livered on the Pacific during the month of July and August last. I think it should be shown in the rec- ords that no honest efforts have ever been made to secure American ships for making coal deliveries to this coast at regular stated periods during the year, on a schedule arranged whereby eight or ten vessels could be regularly It is not necessary ~ THE MARINE REVIEW employed in carrying the coal to this coast, and returning with cargoes of the products of this country. Had this plan been adopted, American vessels to a great extent could have been secured, requiring the employment of a much smaller amount of foreign steamers. American vessels could have gradually decreased their coal rates along with the increase of volume of eastbound business. Further than that if the department will assume a fixed friend- ly policy in that regard, larger Ameri- . can vessels would soon be forthcom- ing. It is such assistance similar to above that the American Merchant Marine demands from our government, more so than direct subsidy. This and similar things other countries do for their shipping. I observe it was woven.into the record of the committee meeting of Dec. 13, 1909, that Japanese Naval vessels consume the best coal procur- able in their. country. It was not shown that vessels foreign to its coun- try were engaged to transport Welsh, | Pocahontas, or any other coal mined eight or ten thousand miles distant ftom the said naval vessels. As a matter of fact, Japan does not thus transport coal for her vessels. Last summer two Japanese cruisers visited cities on Puget Sound and purchased coal mined in King county, this state, for consumption on their homeward voyage. With reference to Mr. Wm. McMas- ters' letter, secretary of the Portland Chamber of Commerce, appearing in the record of page 359, I beg to advise that 'his is an entire mis-statement of facts. I also make the same remarks regarding the resolutions appearing in the record on page 313, which reso- lutions were inspired by an anonymous letter sent out from Portland, Ore., iby one or two foreign shipping firms in 'at city, a copy of which I will ar- range to have sent you by Mr. John A. Penton, Cleveland, to whom I sent tue. circular. In refutation of the charges made by Mr. McMasters and the resolutions passed by the Farmers of Umatilla county and other similar resolutions from Oregon and Washing- ton, I am enclosing the San Francisco Commercial News which contains the statement of the sailings from this coast of the Oregon and Puget Sound grain fleet in 1909, which includes the name of only one steamer which com- prised the fleet of twelve or fifteen steamers which the government dis- missed from its service here during July and August last, and prior to the actual commencement of. grain ship- Also had this been done, | February, 1910 ments hence, the others having loadeq lumber, coal or merchandise in com- petition with American owned vessels. The vessel referred to as_ having taken wheat is the Baron Napiere ap- pearing on the page 15 of the within: enclosure. : There are at present two foreign grain ships idle in San Francisco, and fifteen idle on Puget Sound, which vessels were unable to secure wheat at the European Union rates of 27/6, and because of the rules of that com- bination, have declined to accept grain cargoes at a less rate; but offered for lumber, coal and merchandise at ri- diculous rates to prevent American vessels from securing same. With reference to Mr. McMasiters' statement to the effect that foreign vessels do not interfere with vessels of American ownership on this coast, the latter being engaged exclusively in the coastwise business, I refer you to page 15 of enclosure, which con- tains a table concerning the Pacific coast lumber fleet of 1909. You will observe that thirty vessels appear to have taken cargoes of lumber to countries foreign to this during No- vember and December, nineteen of which were American and eleven for- eign. I am sorry I cannot supply you with an annual statement showing the number of American vessels en- gaged in the foreign lumber trade from this coast; but in round figures, out of about three hundred and eighty- five of such vessels enrolled here, 40 per cent trade foreign. The foreign lumber business from this coast was originally worked up by Pacific coast American vessels. It goes without saying they formerly enjoyed about 100 per cent of the business. In 1909 they carried less than 25 per cent ot the volume of lumber exported and within two years if the Navy depart- ment continues its present policy, our interest in the trade will be entirely lost, which will be the last chapter of the bottling of American com- merce by foreign shipping and other interests. This is a long letter; but I hope not too long, and that you will find time to peruse its contents, and use the information contained therein in the way you deem best. Yours § truly, (Signed) G, F: Thorndyke, Joseph. F. Hayes has resigned as fleet engineer of the lines operated by A.B. Wolvin, of Duluth, and will go into business in Cleveland in as- sociation with W. H. Thompson.