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February, 1910 EXEMPT FROM TONNAGE TAXES. Eugene Tyler Chamberlain, commis- sioner of navigation, has sent to col- lectors and customs a copy of a letter to Goulder, Holding & Masten, of Cleve- land, in which the Bureau holds that vessels, from foreign ports entering or touching solely for the purpose of taking on bunker coal are not engaged in trade and are therefore exempt from tonnage duties. The letter follows: "The Bureau has received your peti- tion of even date on behalf of the Pittsburg Coal Co. Port Royal Dock Co., Pickands, Mather & Co., and Stan- ley B. Smith Co., in which it is rep- resented that they and others maintain steamer fueling plants at Sault Ste. Marie, Detour and Detroit for the pur- pose of fueling steamers engaged in commerce and navigation on the Great Lakes; that' since. <Octi.5; 1909, when Section 36 of the act of Aug. 5, 1909, 'to provide revenue, equalize duties, and encourage the industries of the United States and for other purposes' went into effect, collectors of customs have been exacting of. vessels from foreign ports stopping solely for the purpose of taking on bunker fuel (in quantities averaging about 75 tons per steamer), a totinage tax of 2 cents per ton, as pro- vided by section 36 of the act. "You protest against the collection of this tonnage tax on the ground that 'vessels in distress or not engaged in trade' are exempt from the imposition of the tax. The effect of the tax, you contend, is to deprive the petitioners of their market for fuel or bunker coal without any increase of revenue to the government, betterment of our in- dustries, or the accomplishment of any purpose within the intent of the act, and the effect of the tax in these cases is to destroy the market, a result which you contend should not be permitted un- less necessitated by express, mandatory language of the act. "The bureau concurs in your view that the attempted imposition of the tax in such cases. does not 'provide revenue, equalize duties or encourage the indus- tries of 'the United States,' and that the exemption of the vessels under consid- eration would not run counter to the declared purposes of the tariff act of Aug. 5, 1909. The 'trade' contemplated by that act is that intercourse which brings goods into the United States in competition with American industries or comes into the ports of the United States seeking the carriage of goods. Since Oct. 5, 1909, the words 'vessels in distress or not engaged in trade' must be read in the light of the purpose of the act of which they are now a part. In this sense vessels from foreign ports entering or touching solely for the pur- "TAE MARINE REVIEW pose of taking on bunker coal sufficient only to enable them to complete the voyage are, in the opinion of the bureau, 'vessels not engaged in trade' within the intent of section 36 of the act: of Aug. 5, 1909, and are, accordingly, ex- empt from the tonnage duties prescribed by that section. Instruction to this effect will be sent to collectors of customs. Respectfully, E. T. CHAMBERLAIN, Commissioner. j OBITUARY. Abram Smith, the pioneer ship builder, died at his home at Algonac, Mich., on , Jan. 20, in his ninety-first year. © Mr. Smith was born in the town in which he lived and died. When he was born, there were neither telegraphs nor tele- phones nor railways nor even envelopes. The battle of Waterloo had only been fought four years and Bonaparte was still' at St. Helena, There. were 10 ABRAM SMITH. vessels of any kind on the lakes except the tiniest of schooners and none what- ever on Lake Superior except birch bark canoes. As a boy, Smith carried the mail on horseback. It was not until he was 30 years of age that he began build- ing vessels and during his long life he built a number of creditable schooners. He leaves two daughters and_ three sons, Mrs. G. E. C. Seaman, of Sault Ste. Marie, Mich.; Mrs. W. K. Moore, of Algonac; J. B. Smith, L'Anse; J. A. Smith, of Detroit, and A. M. Smith, of Algonac. The 'American Ship Building Co. at its West Superior yard is lengthening the steamer James H. Hoyt by 48 ft. IN BEHALF OF OUR MER- CHANT MARINE. -- Congressman James Francis Burke addressed the Tippecanoe Club, of Cleveland, on Jan. 28, on the revival of the merchant marine of the United States. He presented many important facts, saying among other things: The most remarkable feature of the opposition to the proposed legislation on behalf of the American merchant marine is the seeming inability or in- disposition on the part of many to give the subject any earnest thought. It seems to be assumed that the reasons the foreigners handle all our foreign commerce is because they can do it cheaper and that our shippers and the country at large are therefore gainers thereby. Believing that, we deceive only ourselves, for the $200,000,000 we pay annually to foreign nations for carrying our commerce is gone forever--like yes- terday--like the water that runs over the wheel. What other country than our own, stupendous in its resources, could stand such a constant drain? We are merely, out of our thoughtless bounty, supporting the nations of the old world; furnishing the very sinews of a war of which we are the objective and common enemy--a war for the trade of the world. But let us consider a few figures--not uninteresting either. It is proposed to extend and amplify the Ocean Mail Act of 1891, but with the stipulation that the sums paid under 'it shall in no year' exceed the profits on sea postage, which are over $6,000,000 per year. Let us suppose that we spent $4,000,000 of that fund for additional mail service. The rate proposed is $4 per mile for the outward voyage only. Then for the minimum voyage, 4,000 miles, a_ ship would earn $16,000, or per year, at six voyages, say $100,000. Our $4,009,000 then would require the construction and operation of at least 40 big ships at once for such service alone. The cost "of those ships would not be less than $1,000,000 each, or $40,000,000. Of this enormous stim over 80 per cent repre- sents actual wages paid to labor, from the ore in the mine, the seed in the ground, the tree in the forest, to the finished fleet afloat but not yet under way. And once in service, the pay roll alone of these 40 ships, as taken from the records of actual ships, would be not less than $100,000 per year each, or ~ in each year a sum equal to the total amount of mail pay, and every dollar of the foregoing stays with us instead of going to the foreigner. And besides all this, the coal to be mined, the food to be provided, the repairs for our workmen, and beyond all, the opening