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32 "TAE MARINE. REVIEW also open to the objection that it is not general in application, inasmuch as thete are many ports from which the bulk of the goods imported are free and upon which there would be no duty. In certain lines of trade the goods bear a high rate of duty and it would be an inducement to ship by American vessels, but on goods of a different character and less value 'the same inducement would not exist. In any case, the quan- tity of such goods would be uncertain on each voyage and the shipowner could not feel assured that the quantity would be such as to make the business remunerative to him and warrant him in building and running vessels under it. It is probable also that discriminative duties would interfere with existing commercial treaties with other nations; in any event it would be likely to cause retaliation in some form upon their part. -At best, it is a cumbersome method and uncertain in its ap- i plication.. _...."Free ships:.This is nothing but free trade, pure and simple, and seems a most inconsistent method of remedying the pres- ent condition of the American merchant marine, which has . been caused by the high protective tariff upon all other prod- ucts. It.is true that this would give us cheaper ships (and so would the abolition of the duty give us cheaper broadcloth and other goods), but they would not be American ships in any sense but by the fact of registration, nor would it tend to in- "screase and foster our shipbuilding ; even the repairs of foreign- built ships would be difficult in this country, as everyone .con- "versant with, ship building knows that a ship is Dest. repaired in ~~a home. port owing 'to difference i in construction, methods,. etc. - Why" should the ship. industry be. made the only, exception to ~ our: present system' oh protection? . ' : "Subsidy: 'This' word, 'unfortunately, has an. uid 'sig- "nificance to: 'the Anierican people mainly, I think, from a mis- conception of its 'application. To the popular mind it is re- garded as a direct bonus and profit to the ship owner paid from the public treasury. In point of fact a subsidy in the present case is only an equalization to the ship owner for the Ag loss of interest, depreciation and insurance on increased > of running, wages, maintenance, oe "thereby eaablae him "to derive only the same profit from the business that is now enjoyed by foreign vessels, all these disabilities' having been produced by the policy of protection which has been applied to almost every other industry to its great advantage, thereby "enhancing the cost of building and running the vessels to the American shipowner who has been left to struggle with the problem as best he could. "Tn all cases the plainest, simplest and most straightforward. method is the best. The payment of a moderate subsidy per ton per mile traveled is broad and equal in its application and 'of such character as to enable the shipowner or capitalist. to easily estimate whether with such assistance he can profitably build and operate vessels not' in one line of trade only, but to all parts of the world. Divorced from 'subsidy' by the sub- -stitution of some other ved this method would i some of mts terrors, 26/25. > oe Be Te? "T therefore dae the direct payment of a nioderate com- 'pensation. per ton per. mile 'to..all classes. of*steamers'-and 'sail- ing. vessels- engaged: in foreign commerce as me best' remedy for the existing evils." ee re } MORLEY DISCUSSES CUBAN a ~ Mr. H. T. ia 'of Detroit, avueeet en rage before Ocicine among. other. eauaecteds for..the ae -of _ American. shipping. the..1dea. of .giving a: preferential tariff on a imparts when made in: American: bottoms, J: wish to call,.your _attention - to. this treatment of.,.the,.trade from . 'Cuban to _ American, ports. This scheme. is open to.,all-and- not. subject fo, the criticism, Of. subsidies... Lhe, commodities, af, sugar, .coal iron ore' moye in, full $980, Lots. ~ 'The. merchant. wishing "main » track... any. one -year. before.- for. its, good..track, and the. nianagement finds that it is mecessary.:to use a.: heavier: rail: on account.of-the. weight . of :the.several. hundred new:. engines-that. have been. pur- - chased. in. .the last two years: .dmoved.. 'has only..been in track.four or:-five. eae: and. will sobe psed. On, branch lines... -::,,. lagh to engage tonnage to move full cargo lots consults his broker as to the market for freighting and does not apply to a line agency to ascertain the established rate. It is open for com- petition to any ship seeking such business. There are always plenty of ships seeking business, or soon will be if a chance of profit offers. As an instance of the quick response of American shipping interests to an opening for profitable busi- ness, look at the oil carrying trade from Texas ports to North Atlantic ports. Two years ago there were no steamers fitted to carry oil, now there are upwards of thirty such steamers engaged in this trade and the competition is already keen. "Cuba offers today the best opportunity for the application of the preferential tariff in aid of American ships. We have already entered into a reciprocity treaty and the basis is ready _to.extend this treaty in aid of shipping. Cuba lies at our door and its coast is but an extension of our own coast line. The .exchange of trade between the two countries is in its begin- ., ning and now is the time to introduce such measures into the reciprocity trade arrangements as will permit American ships to begin and their numbers increase with the demands of the trade. "Are we as a nation to give up revenue tending to build up an immense exchange of commodities and see this carrying trade diverted to foreign ships? _ "The importation of sugar from Cuba to United States ports in round figures is 1,000,000 tons. (2, 240 lbs.) per year. On entrance to United States. ports.Cuban sugar pays the regular United States tariff of 1 .95 cents. per lb. less 20 per cent. "Twenty per cent of 1.95 cents is 39-100 of one cent, or, per.ton of 2,240-lbs. the. preference i is $8.736; for 1,000,000 tons at $8.73, $8,736,000. "Allowing for other importations from Cuba to United States it is safe to say that the price paid by the people of the United States for the benefits of Cuban reciprocity will ap- proximate $10,000,000. _ "As the scheme of Cuban reciprocity has been worked out all agriculture and manufacturing products of United States, except ships, have been taken care of. The carrying trade being entirely neglected, the ship builders given gs per cent off the regular Cuban tariff on ships. This is not 25 per cent on the cost of the ship. The cost of carrying 1,000,000 tons of sugar from 'Cuba to United States ports is about $2,000,000 per annum (average rate of freight is about $2.00 per ton). Coal, -lron ore and all other commodities would safely bring the total amount of freight up to something like $3,500,000 or $4,000,000. "This trade is just beginning and bids fair to increase by leaps and bounds. A very small percentage is carried in American ships, fleets of English, 'Norwegian and German ships monopolize the business--a business built up by reci- ~procity. Cannot some preferential tariff be arranged so as to permit United States ships to enter this trade? The foreign 'ships in this trade are not trading direct between ports of their. nationality. and. United States ports--the most favored nation: clause should not apply. in this instance. Recommend _ the passage-of.a message by congress granting a reduction of duty on sugar transported -from. Cuban ports in) American ships. This would not only secure to. American ships the "sugar-carrying but also the return cargoes of coal." The maintenance of way-forces of 'the 'Ere are now en- gaged in» laying. 350. miles of: go-lb. steel 'rails on the -A larger. mileage has. never been. laid in The: Erie has always been. noted Much of.the rail- being re-