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oo AR UI UN. E ce OPPOSED TO FREE SHIPS Inquiries on the question of free ships have been sent by the Merchant Marine Commission to the American owners of forcign built steamships. These inquiries and the replies thus far received are as follows: Dear Sits: It is stated in the report of the commissioner of navigation for 1902 that you are the owners in whole or in part of several steamships foreign built and now flying foreign colors. The Merchant Marine Commission is charged by congress to as- certain, if possible, the best method of increasing American tonnage in the over-seas trade. Will you kindly state for the information of the commission: -t. Whether you would, if so authorized by congress, trans- fer your foréign ships to American registry to engage ex- clusively in the foreign trade, but to remain without sub- sidy, differential duty or any other ee encourage- ment? olan 2. Whether you would transfer your fonsuae bells steam- ships to American registry if they were admitted to all or part of any subsidy or differential duty granted by our government, but were still confined to the foreign trade? 3. Whether you would transfer your foreign-built steam- ships to American registry if no subsidy or differential duty were granted, but if the ships were allowed to enter the coastwise trade on the same terms as other American vessels? 4. Whether you would transfer your foreign built ships to the American flag for foreign trade alone if you were re- quired to build an equivalent tonnage in this country? 5. Whether, if your foreign built ships were admitted to American registry, you would wish also to have the privilege of employing alien officers and be exempted from the food scale required by United States law Very truly yours, WintHrop L. Marvin, Secretary. Messrs. W. R. Grace & Co. of New York reply: "To question No. 1 we reply in the negative. "To No. 2 we reply that we would probably if entitled to full subsidy. "No. 3 we answer affirmatively. "No. 4 we answer in the negative. "No. 5. Our answer is, we would prefer to have the privilege of employing aliens for positions below captains and chief engineers, but would not object to compliance with United States law respecting food scale." Mr. P. A. S. Franklin, vice president of the International Mercantile Marine Co. of New York, replies: "rt, If congress should authorize the issuing of American register to foreign built ships to engage exclusively in the foreign trade, but provide for no governmental assistance to such ships, we could not afford to transfer any of our foreign built ships to American register, as the increased cost of operating steamers under the American flag compared with steamers under foreign flags in the same trade, would be to» great to warrant the transfer. "2 If foreign built steamers were admitted to American register and were granted sufficient governmental assistance (either by subsidy or otherwise) to offset the increased cost of operating under the American flag as compared with the cost under a foreign flag, we would doubtless take advantage of this act and transfer some of our steamers now under. for- eign register to American register. "3. Jf no subsidy or other assistance were granted by con- gress to foreign built ships transferred to American register. but such steamers were permitted to enter the coastwise trade on the same terms as other American vessels, there would be no inducement to make the transfer as steamers constructed RS Yt 8 for the foreign trade are not generally suitable for coastwise trade. "4. If congress should pass an act providing for the ad- mission to American register of foreign built ships under an agreement on the part of the ship owner to build an equal amount of tonnage in this country, we would not take ad- vantage of this act unless, in addition, governmental assistance was provided sufficient to offset the increased cost of building and operating steamers under American register. "s If foreign built ships were admitted to American reg- ister we would not care for the privilege of employing alien officers and to be exempted from the food schedule required by United States laws, provided the assistance offered by the government as an offset to increased expenses were sufficient to cover the ee cost of wages and provisions of the American crew." Mr. Bernard H. Baker, formerly president of the Atlantic Transport Co. of Baltimore, Md., replies: "1 Whether you would, if so authorized by congress, transfer your foreign built ships to American registry to en- gage exclusively in the foreign trade, but to remain without subsidy, differential duty or any other government encour- agement? (Ans.) No. "> 'Whether you would transfer your foreign built steam- ships to American registry if they were admitted to all or part of any subsidy or differential duty granted by our govern- ment, but were still confined to the foreign trade? (Ans.) Yes. "3. Whether you would transfer your foreign built steam- ships to American registry if no subsidy or differential duty were granted, but if the ships were allowed to enter the coastwise trade, on the same terms as other American ves- sels? (Ans.) No. "4. Whether you would transfer your foreign built ships to the American flag for foreign trade alone, if you were re- quired to build an equivalent tonnage in this country? (Ans.) Yes, if subsidy or differential duty sufficient were given. "sc Whether, if your foreign built ships were admitted to American registry, you would wish also to have the privilege of employing alien officers and be exempted from the food scale required by United States law? (Ans.) Yes, would wish privilege to employ alien officers. "No, would not wish exemption from food scale required by United States law." Messrs. IT. Hogan & Sons of New York reply: "No. 1. That there would be no incentive, from a business point of view, to transfer foreign built ships to American: registry, if they were to be confined exclusively to the foreign trade but to remain without subsidy, differential duty or any other government encouragement, on account of the greater cost of operating vessels under the American flag than under some foreign flag. "No. 2. The advisability of transferring foreign built ships to American registry if they were to be admitted to all or part of any subsidy or differential duty granted by our govern- ment yet confined to foreign trade, would depend entirely upon the amount of such remuneration that the steamers would receive under such subsidy or differential duty. If it did not fully compensate for the extra cost of. operation there would be no advantage to be gained by making the change. "No. 3. We would not say at the present time whether we would want to transfer our foreign built ships to American register without subsidy, but with the privilege of entering the coastwise trade. "No. 4. The answer to No. 1 practically covers this ques- tion also. There would be nothing gained by transferring foreign built ships to American registry and building an equivalent tonnage in this country, unless both classes of ves- sels participate in the subsidy or differential duty. "No. 5. In view of the possibility that there might not bea