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case discriminating duties were imposed by the United States for the benefit of American shipping. Mr. Nixon said there was little to fear on that score. The witness said that the postal subsidy act of 1891 had “done an immense amount of good.” In the estimation of Mr. Nixon, the act had encouraged swift ships under the American flag. He thought that an ex- tension of the act of 1891 would result in the establishment of additional lines of fast mail steamers. STATEMENT FROM ADMIRAL BOWLES. President Francis T. Bowles of the Fore River Ship & Engine Co., Quincy, Mass., formerly chief constructor of the United States navy, submitted facts and figures relating to foreign and domestic ship building. Mr. Bowles said the aver- age of wages paid in American ship yards was about 75 per cent greater than is the case abroad. In a further statement Mr. Bowles said wages in this country exceed those in England and Scotland anywhere from 30 to 40 per cent. “T recall,’ Mr. Bowles said, “the respective bids made by an English and by an American firm of ship builders for the construction of a steamer of 7,000 gross tonnage. The English firm offered to build the vessel for $214,000, while the American competitor’s bid was $275,000. However, this state of affairs should not always exist. In an investigation I conducted last year for the navy department I found American firms wefc building battleships and armored cruisers about as cheaply as similar vessels were being built in British yards. The reason for this is that our domestic firms pursue a ‘cut-thrcat’ policy and take government contracts which are not profitable.” President Bowles said he saw no occasion to be afraid of the subsidy idea. ‘Whatever is done,” the former rear- admiral said, “must be for a definite and fixed period.” John Craig, president of the Craig Ship Building Co., Tole- do, O., indorsed Admiral Bowles’ remarks. Mr. Craig said he had just returned from a trip through English and Scotch ship yards. As showing the discouraging outlook for ship builders on the great lakes, he said that on July 1 next there - would be only one vessel on the stocks. SPEECH OF MR. W. G. SEWALL. William G. Sewall, representing the firm of Arthur Sewell & Co., Bath, Me., which builds the largest sail cargo-carrying ships in the world, stated that his yard had been closed a year. He said: “I represent Arthur Sewall & Co. of Bath, Me. The city of Bath has been a ship building center for 150 years, and I might say, has stood uninterruptedly at the head in the pro- duction of sail tonnage in the United States. Many of our citizens have been interested not only in the building, but sailing of square-rigged vessels for the foreign trade, and in 1854, there was built in this city fifty-nine full rigged ships. During the past two years we have built none. In fact, of late years, my firm alone is the survivor of this great industry. Our yard was established in 1823. We have built over too vessels, mostly for the foreign trade, and in years past, our ships have been in nearly every maritime port of importance in the world. At the present time, we are the managing own- ers of twelve vessels, all square-rigged with one exception, and varying in carrying capacity from 3,000 to 5,000 tons each. “Ten yeats ago, we commenced the construction of steel ships, building the first steel sailing ship built in America. Today, our yard is closed. It has been closed now for over a year, and as much as we would like to open it, we can see no encouragement for doing so at present. We have held on hoping in vain for better times, and some years, building more from sentiment than from sound, business judgment. The limit has been reached. Every ship yard in the ‘country has a similar tale to tell—some ruined and in receiver’s hands—- others closed, and the remainder running at a loss. And so it is with our foreign carrying trade, for the two go hand in hand. The condition is truly deplorable, but TI feel, gentle- R ee I Boa men, that our story so far as it relates to the necessity of some legislation being passed in behalf of American ship- ping, has already been told at the various hearings held at Washington during the session just closed. That there is need of legislation, I assume you take for granted, and the great question before you on which there are so many different opinions, is how to best meet and remedy the situation. | believe we are all somewhat doubtful as to the proper course to take. What we want is relief that will be liberal at the start, effective at once, and of sufficient duration so tiat capi- tal and enterprise will not hesitate in doing their part. “There have been a number of methods propesed. The free ship theory I discard; in fact, it is hard for me to conceive how anyone with true, American spirit can look with favor, or see any benefits coming from such a policy. At the best, it only meets the issue to a limited extent. We would still have the difference in maintainance, manning aid operating to contend against. We would have no ship yards, and the incentive for American enterprise would be largely «liminished. Discriminating duties would no doubt prove most effective, and I believe we are a nation strong enough and great enough to carry the issue through, if we determined to do so; but there would be many obstacles to meet, and many treaties to abro- gate, some of which I understand would take from one to two years. The plan of increasing tonnage dues might prove de- sirable, but if foreign tonnage is to be shut out by this method, the increase would have to be considered, and as American shipping regained the trade the burden would fall on us, and the subsidy to compensate would necessarily have to be extremely large, which would no doubt be misconstrued by many and be objectionable. “T am therefore of the opinion, notwithstanding the senti- ment held by many against direct subsidies, some bill embody- ing this form of relief, giving a fixed rate on all vessels alike, based on capacity and mileage, and with a sp-cial subsidy for mail steamers, making it as simple and concise as possible, would be the least objectionable, the most speedy remedy, and therefore, the most satisfactory measure. “Tt must be sufficient to meet not only the disadvantage we suffer in the construction and repairs of our vessels, as com- pared with our foreign rivals, but also meet the difference in the cost of manning and operating, as well as the advantage now derived from holding the trade, and all which that im- plies. The French government, besides paying a building bounty, gives a mileage subsidy of about 3.20 cents per ton per 100 miles sailed, which practically covers the operating expenses of the vessel. While I do not consider it necessaty to pay such a subsidy as this, yet to be effective, with the con- ditions as now existing, it should be liberal, and in granting some form of mileage subsidy, we should bear in mind it 1s only giving shipping the protection which has long been granted many other industries of a far less national character and importance. “The policy of our country is protection; we have subsi- dized our railroads; fostered our industries; spent money lavishly on our rivers and harbors, and you might say, solely for the benefit of foreign shipping so far as our foreign trade is concerned, and yet, we have done nothing to encourage our own merchant marine. The completed ship, one of the highest and grandest forms of manufactured production, reaching out to the various industries on which it draws, and giving employment to American labor throughout the coun- try is not protected. This should be considered by those un- friendly to this form of relief, and they should also bea? in mind the great advantage coming to our people in opening uP trade in foreign countries through our own agericies. Why. should we be content to simply raise our products and merely transport them to our sea coast, when we can deliver them to the markets of the world, saving not only the transportation, but receiving countless benefits besides in the opening ap of