Manual of Ship Subsidies: An Historical Summary of the Systems of All NationsBacon, Edwin M. (Edwin Monroe)
History
Manual of Ship Subsidies: An Historical Summary of the Systems of All Nations
Bacon, Edwin M. (Edwin Monroe)
Shipping bounties and subsidies
Complaints against these new regulations were promptly raised by
shipbuilders and ship-outfitters,[BK] and in 1870 a Parliamentary
inquiry into their grievances was made. It appeared that shipbuilders,
though enabled to import free such materials as they needed, were
handicapped by numerous and extensive formalities; while the outfitters
were embarrassed by special burdens which the law laid upon them, and
which their British competitors did not have to bear.[BL] In 1872 laws
were passed which reversed much of the act of 1866. A tax of from
thirty to fifty francs a ton measurement was re-imposed on all foreign
ships purchased for registration in France, together with a duty on
marine engines; again a tonnage duty, of from fifty centimes to one
franc, was imposed on ships of any flag coming from a foreign country or
from the French colonies; and the provisions freeing materials for ship
construction, and admitting foreign-built ships to French registration
upon payment of the two-franc tax per ton, were repealed.[BM] In 1873 an
extra-parliamentary commission took up the general question of the state
of the commercial marine,[BN] and the outcome of this inquiry was the
establishment of the system of direct bounties. This system was applied
for the first time in the Merchant Marine Act passed in January, 1881.
The act of 1881 granted both construction and navigation premiums, and
was limited to ten years. The construction bounties, as was declared,
were given "as compensation for the increased cost which the customs
tariff imposed on shipbuilders" in consequence of the repeal of the law
granting free import of materials by construction; the navigation
bounties, "for the purpose of compensating the mercantile navy for the
service it renders the country in the recruitment of the military navy."
The construction bounties, on gross tonnage, were as follows: for wooden
ships of less than 200 tons, ten francs a ton; of more than 200 tons,
twenty francs; for composite ships, that is, ships with iron or steel
beams and wooden sides, forty francs a ton; for iron or steel ships,
sixty francs; for engines placed on steamers, and for boilers and other
auxiliary apparatus, twelve francs per 100 kilograms; for renewing
boilers, eight francs per 100 kilograms of new material used; for any
modification of a ship increasing its tonnage, the above rates on the
net increase of tonnage.[BO] The navigation bounties were confined to
ships engaged in the foreign trade, and were to be reduced annually
during the ten years' term of the law.[BP] They were thus fixed: for
French-built ships, one franc and fifty centimes a registered ton for
every thousand sea miles sailed the first year, the rate to diminish
each succeeding year of the term seven francs and fifty centimes on
wooden ships, and five centimes on iron and steel ships; for
foreign-built ships owned by Frenchmen admitted to registry, one-half
the above rates; for French-built steamers constructed according to
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