The San Francisco Call. Newspaper, February 11, 1906, Page 6

THE ' SAN FRANCISCO SUNDAY CALL 1 HAT the United St from a power among the tions engaged in ocean carrying, has come tc rank with C Russia in importance, is dence enough later polict ot were widely in rey were intended to se is, and as efforts to secur t provision gepeatedly fail n was af length 2 Government competer ¢ our commerc! ation of our co Congress met under the per cent of c ships, while a 100 per ce: en to 1 ex- dled by nage bill pro- ge of € cents a ton agal 30 cents a ton agal operated by nts per ton agal some opposition 1 of Washington and t the United States must be maintained independent of the er of marketing products was so well supported by argument that the passage of the me: ares followed and they remained the p f the Government for many years That they were well conceived their retion proved, for by 1811 90 per cent imports and 8 per cent of our rts were carried in American ships, the war with England which d sufficed to wholly cut down tage. the system of discriminating s was modified so as not to apply those vessels which came laden with products of their own land. There change in the ruling as to English bringing South American goods nor vessels laden with East Indian The new provision simply made plain that this nation would not and er nations in &utie to the was re allow its commerce to increase the wealth of a world’s carrier; States that the United while not seeking to become a carrier among the nations, was T less determined to maintain con- 1 of its own trade. r suffered most by increase of American shipping and, through the had missed no opportunity to com- 3 t 80 long as this Government's policy remajned constant British oppos was ineffective 1827 the United States had more than overed from the setback of the War of o that the shipping was almost ade- q the country’s needs, 9 per cent of the imports and §7 per cent of the exports being carried in American bot- t came Great Britain's seemingly r to abolish all navigation re- s provided the United BStates take a similar step. How much departure meant to her than will be understood when r that whereas the American red adequate to the Ameri- e British fleet was many 1 could be employed in could maintain eral commerce of e, and p e effect of the removal of »ne by which our merchant peen developed was a great it tonnage in American increase that amounted to 300 ten years, during which period tonnage in British ports showed 40 per cent. It is easy whose had been the gain and whose loss by the so-called “‘reciprocal ar- gement.” Another factor in the decline of the American merchant fieet was the perfec- tion of the steam engine in its application to ocean transportation. If America had marine increase in B ports, an t i welcomed the invention, had peen quick to adopt it, as England was, ‘Yhe defeat might have been deferred, even if not avoided altogether. But for many years American ship- builders had sent to the sea the stanchest, swiftest, strongest sailing vessels the world had known and they could not ad- mit the advent of a new day. The great forests, rich in all the tim- pers the ships required, still stretched away to the north and west for uncalcu- lated miles, the bullders had in their yards the accumulated skill of years, and it is not surprising they looked with dis- favor on so radical a change as steam necessitated. Parliament, on the contrary, was prompt to recognize the impc power in assuring to England fir: am ritime nadons, and, since by the agreement with America a return to the former discriminating dutles was im- possible, it was decided to adopt a system nard Company, operating trans- Atlantic steamers, was the first to feel the protection of the Government, the postal subsidy of $425,000 granted them in 1839 being soon increased to $850,000. This state aid has been extended to the present day and only a few months ago Parliament confirmed its confidence in the wisdom of the policy by increasing the annual appropriation $1,100,000 to en- able the company to build and operate two splendid new vessels. With the advent of the steel hull, the early '40’s, American shipyards w placed under a fufther handicap, since English and Scotch builders could, by virtue of equipment and experience, con- struct steel vessels at much lower prices, and it looked as if the last word on the subject of American shipbuilding had been spoken. But the industry was to be given a new lease of life. In 18445 Congress, alarmed at the meance of England’'s maritime strength and determined to profit by the lesson to be read therein, voted the first postal subsidies for lines running to Europe, the West Indles and the Isthmus of Panama. At once the impetus was responded to and notwithstanding the fact that Great Britain’s adoption and protection of the steamship antedated America’s by a dec- ade, by 1551 a comparison of the steam tonnage of the two nations showed Amer- ican 62,000 tons and Great Britain 65,000 tons. And among them all, it was an Amer- ican line, the Collins of New York, that held the record for speed and elegance. Collins had been the owner of a line of fast salling packets in the day when those boats were the greatest of the shipbuilder's achievements, and he was not content to let the Cunard steamers win without a struggle. He organized a company, built four splendid paddle stamers of clipper type and entered into contract with the Gov- ernment to carry the malls. Superior to the English ships in every way, the new line proved extremely pop- ular, and as for speed—one of its boats, the Pacific, electrified two continents on May 20, 1851, by making the run from New York to Holyhead in nine days, nineteen hours and twenty-five minutes! If Government support had been main- tained there is no reason to doubt that the word “‘American” would to-day represent the same high standard in mat- ters maritime as in other lines of our endeavor, but in the political disturbance of 1856, as a result of sectional difficul- in tles, subsidies were abolished and they ¢, Inevitable followed. The mail lines tried for a time to con- tinue competition with subsidized ships of other nations, bdt were soon com- pelled to relinquish the effort. During the Civil War, Confederate cruisers destroyed many of the merchant ships of the North, while those that were not sunk were forced to fly the flags of other nations to save themselves. Later these vessels would have welcomed a re- turn to American registry, but this the law forbade, and as the men who had previously been interested in their build- ing now turned their attention to the construction of railroads throughout the West, our merchant marine became prac- tically dead. It is to-day adequate to handle less than 10 per cent of this coun- try’s commerce. In the past forty years Congress has repeatedly cousidered the need of ship- ping protectdgn, but the only legislation that has resulted, except for the coast- wise trade, is found in the restricted postal subsidy grant of 1891 Under its operations the net cost of ©ver-seas mail transportation last year scarcely exceeded $2,500,000, of which a large part went to foreign compa- nies, for the very excellent reason that there are not enough American lines to provide the service. However, it must be noted that for le same period the postage collected on articles exchanged with foreign lands, excluding Canada and Mexico, amounted to $5,000,000, leaving to the Government a net profit of $2,500,000. The carrying of the mails is not a function from which governments seek to derive gain. The service is one that should be rendered at cost and a reg- ular vearly balance warrants either a decrease in rates or an increase of fa- cilities. Under the conditions that con- front us no loyal American but must long for acceptance of the latter alter- native, and this, too, without regard to the section of the country that he calls “home.” For in the ypbuilding of one part of our people all the rest have claim; the fact of the interdependence of indus- tries has been proved so often as to have become an economic axiom. Sl To_fully appreciate the position ,of the United States it is necessary to consider our expenditures along this line with those of other countries. England give§ to a single company, .the Peninsular and Oriental, operating lines to India, China and Japan, $1,600,000 every year, which is more than the United States allows to all the American lines, together. Since the plan of granting mail and admiralty subventions was first adopted by Great Britain, a total of $250,000,000 has been expended in that direction, with the result that the Government has thirty fast steamship lines providing frequent and prompt communication with all the leading markets of the world, forelgn as ‘well as colonial. “Trade follows the mails,”” as some one has said, and this efficient postal service has directly stimulated commerce until British tonnage has reached the astound- ing total of 16,969,000. It might be supposed that the Govern- ment, satisfied with the wealth and pres- tige won as “‘Mistress of, the Sea,” would consider now the curtalling of subven- tlons, but apparently this will not be thought of until the last market of the world has been exploited, for besides the $1,100,000 recently allowed the Cunard Company for a better service between Liverpool and New York, $200,000 has been granted to encourage a new line to the ‘West Indies and $300,000 for the benefit of a company operating a line across the Pacitic, from British Columbia to Japan and China, So does England extend her reputation as a world-carrier, making it more and more difficult for another nation to over- come the advantage she has won in that the shippers are accustomed to her service. France has pursued a changing course in her efforts to establish a maritime power, but for the past twenty-five years has maintained a system of bounties based upon the tonnage of vessels bullt In French shipyards, further sums being allowed for every thousand miles traveled by French ships in foreign® commerce. Bhips of forelgn build are held entitled to half the navigation bounty allowed French vessels. The rates were badly drawn, at first, In that the mileage was so great as to make it possible for the French vessel to run in ballast, but changes were insti- tuted to correct this and’' France has seen her tonnage, which was so long in de- cline, increase in four years 656,000 tons. Germany's first subsidy was granted in 1885 to the North German Lloyd for ser- vice to China, Japan and Australia, 1t being required that the subsidized ships be bullt in German yards. Later the Gov- ernment offered a bounty for a line to East Africa and in 1898-99, so wonderfully had German exports developed as a result of the quick mail service, the Reichstag granted additional sums to the two com- panies to provide even swifter vessels. Germany’s railroads, being under Gov- ernment control, haul at cost all ma- terials used in shipbuilding and also give very favorable rates on goods consigned for export by German steamers. Under these various forms of govern- ment assistance German merchant ton- nage has rapidly increased from 1,234,000 to 3,393,000 in twenty-five years, and by the marvelous development of commerce both the national pride and the national purse have grown apace. Italy, after experimenting with ‘‘free ships” and finding, as other nations had, that the result was a smothering of the home ship yards without material in- crease of merchant tonnage, at length adopted a system of bountles to encour- age shipbuilding, navigation subsidies and subventions to regular mail lines. Italy has thus become more of a power in ocean carrying than she herself had dreamed, and the service provided by the subsidized Lloyd Italiano has led to the development of a spiendid trade with the South American countries—a trade that should and would be our own if we were equipped to handle it. Swedefi, Norway, Spain, Austria—all have realized the impossibility of increas- ing their merchant marine without duly considering present-day conditions, and as for Japan, that nation is entering the bus- iness of ocean transportation with the same vigor shown in the mastery of the many other problems undertaken since her war with Cuina had the double enect of discovering her to herseif and to the world at large. Perhagps it is as well to consider at this puint the advantages that inhere in the Japanese in this new undertakings—ad- ‘vantages which all the shipping interests of this coast and of the entire country have good cause to appreclate. The Japanese steamer America Maru, well known here, operates at an average cost per man per month of $13 %, while an American vessel of about equal ton- nage and operating on the Pacific bas a montkly pay roll based on an average per man of $11 Putting it another w: the .annual ex- cess of cost of wages to the American steamship Is $18.372 over her Japanese rival. The difference in cost of food is another item that operates for economy in the case of Japan, for whereas an American or all-white crew can be fed for 5 cents per day per man, the Orien- tal crew costs the Japanese vessel only 11 cents per day per man, 50 cents per day belng allowed for each of the officers. As if.these advantages were not marked enough, Japan has further protected her steamships by splendid subventions, pay- ing to the company that operates a line of three. vessels to this port, between $500,000 and $600,000 per annum, while the American company with five steamers, covering the same route, receives from $40,000 to $70,000 annually for mail service. The recent rapidly made hjstory of the Japanese has convinced them, as it fllustrates to all the world, that not the least of the merit of a merchant ma- rine les in its usefulness in time of war. Twelve years ago, in her war with China, Japan's maritime force was so limited that she was not able to secure transports enough to carry her men and equipment for the campaigns in Korea and Manchuria. Just as soon as the Government's at- tention could be given to this lack, bounties for native shipyards and sub- sidies for both carge vessels and mall liners were applied for its correction, with the result that no dther nation in the world has shown.such an increase in tonnage in the past eight years. Altogether Japan's subsidies amount- ed to $3,000,000 a year, and since the overwhelming victory won from Rus- sia was largely due to the splendid transport service maintained and the valor and efficiency of the. naval re- gerve men trained in *ha merchant ma- rine it need hardly be added that this three millions will be increased rather than cut down. The wars of the Orient have not af- fected this country directly in the mat- ter of transportation, for the reason that none of the nations involved had served us as carriers. It is a matter of history, However. that when Eng- land, to transport her soldiery and ‘war munitions to South Africa for use in her campaign against the Boers took 250 of the ships engaged in the general merchant trade the United States was seriously crippled in faecili- ties for foreign exchange, and if Brit- .ain’s opponent in that struggle had been a nation also engaged in Overseas commerce, instead of one without a single cruiser in its registry, the result would have been even more disastrous to us. : It has not been forgot that in the sudden need for transport ships our war with Spain developed this Govern- ment was compelled to buy suitable vessels from foreign nations, our own marine being inade e. Such a con- dition, and it still obtains, would quick- ly prove tragic in the event of an en~- tanglement with a primary foreign power, and it would comfort us but lit- tle to reflect on what had been saved, during the fat years of peace, by neg- lect of reasonable precautions for self- support. An American merchant marine, in its upbuilding, must confront the fact that foreign ships can be built for from 235 per cent to 40 per cent less than in Am ican shipyards and the further fact under foreign management and with for- elgn crews vessels can be operated at a saving of not less than 25 per cent, while if the comparison be between American and Japanese it will show an economy of 7 per cent in favor of the Oriental. These differences result from the higher American wage scale, a standard of lv- ing that enables the American laborer to more than merely exist, and no one ad- vocates for a moment a modification that would lower this standard. Foreign rates of interest and Insurance serve to still further accentuate the han- dicap our builders bear, and when to all this is addea the enmormous assistance rendered foreign fleets by their govern- nfents, when we reflect upon England's annual aporopriation of seven millions, the eight and one-half milllons of France, Germany’s large grants of money in ad- dition to other concessions, and the sub- sidles of the smaller states which avail to bring the yvearly total to twenty-five millions, no one can deny the urgent need for prompt American action along the lines that have proved so effective abroad. In the shipping bill now pending in the Senate, the Congressional Commission ap- pointed to examine into this question has Incorporated the ideas developed from months of careful study of actual conditions. It is proposed to grant mail subven- tions to ten new lines, three operating from the Atlantic coast to Brazil, Argen- tina and South Africa; four from portsr) of the Gulf of Mexico to Brazil, Central America and the Isthmus of Panama, Cuba and Mexico, and three from the Pacitic Coast—one to Javan, China and the Philippines via Hawali, one to Japan, China and the Philippines direct, and one to Mexico, Central America and the Isth- mus of Panama. There is, moreover, provision for cargo vessels, a subvention of $5 per gross ton being allowed on all, whether steam or sall, engaged for a year in foreign com- merce. This Is intended to equalize cost of construction, maintenance and opera- tlon between our own and similar for- elgn craft, and is conditioned upon the employment in the crew of a certain pro- portion of naval volunteers. It is hoped to foster the grow‘h not only of a mer- chant fleet that will render us independ- ent of other nations for ocean transpor- tation. both in peace and war, but to develop a naval militla, a trained body that shall be to the navy what the land militia 4s to the army. The framers of the bill estimate that a literal apolication of its provisions will result in an average expenditure of four milllons a year for ten years, an expendi- ture which will enable American vessels to earn the 3200000000 now annually paid by citizens of this nation to foreign agenties for freight, passengers and mail transportation. The American navy costs the Govzy ment $100,000.000 every'year amd all tions agree it is splendidly worth it. May we not, then, wisely devote four millions to the upbuilding of a merchant marine that would, in time of war, increase this navy's efficiency many fold? 12