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
In the judgment of the subsidy advocates the law's failure to produce
the anticipated results only proved its inadequacy in not providing
enough subsidy. Accordingly, further measures were proposed affording a
more generous supply.
In December, 1898, Senator Mark Hanna, of Ohio, brought forward a bill
providing liberal navigation and speed bounties to all American vessels
engaged in the foreign trade. This measure, as defined by its title,
proposed "to promote the commerce and increase the foreign trade of the
United States, and to promote auxiliary cruisers, transports, and seamen
for Government use when necessary." The subsidy was again termed
"compensation." It was to be payable on gross tonnage for mileage sailed
both outward and homeward bound, according to speed. The rate to
steamships showing on trial test a speed above fourteen knots was to
increase proportionately; sailing-ships and steamers of less trial speed
than fourteen knots, were to receive the lowest rate. This was fixed at
one dollar and fifteen cents per gross ton for each hundred of the
first fifteen hundred miles sailed both outward and homeward bound, and
one cent per gross ton for each hundred miles over one hundred miles
both ways. The additional speed bounties ranged from one cent per gross
ton for steamers of 1,500 tons and speeding fourteen knots, to 3.2 cents
for those over 10,000 tons and showing twenty-three knots. The act was
to be in force for a term of twenty years, and no contracts were to be
made under it after ten years.
The Hanna bill met strong opposition, and was finally dropped. A
substitute measure, drawn by Senator Frye, of Maine, took its place.
This also was lost with the adjournment of the Fifty-seventh Congress.
At the opening of the next Congress, in December, 1901, Senator Frye
introduced his bill in an amended form. This offered subsidies to
contract mail-steamships based upon tonnage and speed, and practically
restored the rates of the original Postal Aid Bill. It further provided
a fixed subsidy upon tonnage to other American steamers and
sailing-ships, registered, and to be built in the United States. The
bill passed the Senate, but failed with the House.
* * * * *
In 1903 the matter was taken up with greater vigor, by President
Roosevelt. In his annual message to Congress December 7, the President,
"deeply concerned at the decline of our ocean fleet and the loss of
skilled officers and seamen," recommended the appointment by Congress of
a joint commission to investigate and report at the next session, "what
legislation is desirable or necessary for the development of the
American merchant marine and American commerce, and, incidentally, of a
national ocean mail service of adequate auxiliary naval cruisers and
naval reserves."
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