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produce more than 80 per cent of the output of pig iron for the yean in this country, which in turn will equal or exceed the combined output of Great Britain, Germany and France. And the blessing to humanity, the good hope, the good cheer of it all, is that' all the output of all the countries will be needed to meet the advancing re- quirements of the world. "And without the shadow of turning the evidence on all hands is that this manvelous development so in its in- fancy 'that if the destiny of the two great countries dependent on this route is to be fulfilled, and if the progress shall continue as it has heretofore measured in cycles of ten years, it will in 20 years be beyond figures that any one would dare to predict, I say the evidence is on all hands that what I have been attempting to describe is due definitely and directly to the five in- land seas. "It may be that the next year may. not exceed or even equal this and Progression must be measured in cy- cles of reasonable time, but the pro- gression is certain that all we who seem in this matter to have achieved the gift of such a lamp as Aladdin's need be concerned about is not to trade off our lamp, which aften all is the lamp of experience, for a newer and more glittering one but hold hard to sound principles and timely and carefully and prudently trim and re- plenish the old lamp." BRITISH STEAMSHIP DIES. A return prepared by the treasury of sums payable out of the exchequer, 1906-7, in respect of steamship sub- sidies, has just been issued. Under the heading of postoffice subsidies, the Cunard Co. received £6,800 for the carriage of mails from Liverpool to New York, via Queens- town, every Saturday. The contract for this service is dated July 30, 1903, and runs for a period of 20 years from the date on which the second of the 24.25 knot steamships (the Mauretania) sails on her first voyage. A part only of the contract relates to the conveyance of mails, the remain- SUBSI- der having been concluded in the in-. terests of the admiralty and the board of trade. The admiralty portion of the con- tract provides for a subsidy of £21,000 per annum until the Lusitania and the Mauretania start on their first voy- ages, when the subsidy will be £75,- 000 in respect of each of these ves- sels, making ultimately a total of £150,000. The subsidy secures to the - sailors. "TAE. Marine. REVIEW government the right of pre-emption of either of the vessels of the com- pany under the conditions set out in the contract. The sum paid in 1906--£20,772-- fell short of the full amount owing to shortage in the number of royal mail reserve men employed by the com- pany. The Pacific Steam Navigation Co. received a subsidy of £32,000. The subsidy of the African Steamship Co., British and African Steamship Navi- gation Co., for the carrying of the mails between the United Kingdom and the West Coast of Africa amounted to £15,335. SHIPPING BILL NEEDED. That a ship subsidy bill should be passed immediately by congress to restore the American merchant ma- rine to its former estate, was the point chiefly insisted upon in _ the speeches at the banquet given by the San Francisco Chamber of Com- merce to the California congressional delegation at the Fairmont hotel on the evening of Nov. 12: Other sub- jects were discussed--inland water- ways, harbor improvements, irrigation, forestry, but the merchant marine re- ceived the most attention. This is significant because the western coast is apparently beginning to realize that its trade with the orient depends upon American ships. C. H. Bentley, the president of the chamber of commerce, presided, hav- ing on his immediate right Governor James N. Gillett and to his right George C. Perkins, senior senator for California. Others at the guests' ta- ble were: W. F. Englebright, May- or Edward R. Taylor, E.:A. Hayes, Colonel Biddle, Julius Kahn, F. B. Anderson, George W. Peltier, M. H. de Young, James R. Knowland, J. W. McLaughlin, W. V. Stafford, F. S. Stratton, Colonel J. B. Bellinger, Dr. C. E. Edwords, Lewis E. Aubury, Capt. B. F. Cheatham, Marshall Diggs. The question of subsidies was early introduced, being brought up by Gov- ernor Gillett, the first speaker after the opening words of President Bent- ley. "We want a subsidy bill to be passed by congress," he said, "so that the commerce of the Pacific can reach -out and exploit the great markets of the east. And we want this com- merce to be carried in American bot- toms, manned by crews of American The people of the interior do not appreciate the vast impor- tance to the nation of building up a merchant marine. This, I believe, can be done only by a system of subsi- dies. We pay our mechanics and our sailors more than foreign nations pay theirs, and only by a subsidy can we hope to compete against cheaper for- eign construction, especially when foreign nations subsidize their mer- chant steamships." Governor Gillett spoke also of the importance to California of a con- gressional appropriation for improv- ing the waterways and harbors of the Pacific coast. This should be done, he said, so that vessels could go up into the state from San Francisco and, laden with produce, return to the sea- board. In introducing Senator Perkins as the next speaker, Mr. Bentley re- ferred to the visits during the past summer of many distinguished per- sons to San Francisco, and expressed his belief that this would result in California securing more from con- gress at the session which begins next month than heretofore. One little thing he would like to point out to -- the federal government, through the California congressmen, was that al- though the military post at this city was one of the most important strat- - egically in the country, it was by far the shabbiest. Indeed, the quarters of the officers and men were unsanitary to a disgraceful degree. He did not know why this should be so. Senator Perkins began his speech by suggesting that San Francisco's recently elected mayor. (great ap- plause greeted the reference to May-- or Taylor) be elected an honorary member of the chamber of commerce. President Bentley put the motion and it was unanimously adopted. After reciting at some length the things which the California congressional delegation had succeeded in obtain- ing for the state at Washington dur- ing the last two years, Senator Per- kins in turn took up the ship subsidy matter. He spoke of the coming of the bat- tleship fleet to the Pacific coast, and said: "The only displeasing feature to me relating to this naval expedition is that our government has been obliged to charter twenty-one foreign steam vessels for the purpose of transporting coal and supplies for the use of our battleships while en route to this coast. It is suggestive that something must be wrong with our shipping and navigation laws, as our merchant marine would have been able to furnish the steamers for this transportation service, built by our own workmen and flying the stars and stripes at their peaks or royal trucks. I hope that the members of