Standard Oil Company; Trusts, Industrial -- United States
In 1891 Congress passed the Postal Subsidy law for paying a higher than
the market rate of compensation to capitalists who would carry the
mails in vessels built in America, of American materials, and manned by
Americans. No contracts were made by the Post-office Department under
the law for the mails between Europe and America, for there were no
such capitalists and no such boats in that quarter.
In May of the next year, 1892, a bill was whizzed through Congress
almost without debate, in which the forms of the principal
beneficiaries-to-be of the law of 1891 loomed into view. The subsidy
law gave its bonus only to vessels that could fly the American
flag because American built and manned. This new act exempted from
these conditions the two principal steamers of the Inman, now
the International, line--the _City of New York_ and the _City of
Paris_--provided the company built two other steamers that fulfilled
the requirements of the subsidy law. The sequel disclosed that their
owners had a well-laid plan to build more than two other steamers to
get the rich rewards of the subsidy law. The steamers and the company
were not named. That was not needed. The bill was drawn with such
limitations as to size, speed, ownership, etc., that these were the
only two vessels which could come under its provisions. The bill was
introduced in the House by a prominent Democrat, and in the Senate by
a prominent Republican. It was passed by both Houses regardless of
party distinctions. The Secretary of the Navy urged the bill upon the
naval committees of Congress. He had begun to do so in his first report
to Congress and subsequent communications, in which he referred by
name to the vessels which were masked in this legislation. The head
of the line and other owners were members of the oil combination.
The president of the steamship company has been the president of the
pipe-line branch of the oil trust--its largest single interest--from
the time of its organization in 1881.[575] This exemption from the
law was engineered through the Senate by one who had hitherto always
been conspicuously strenuous in refusing to abate his opposition to
admitting to American registry any ship not built in America, of
American materials, by American labor, but who now had suffered some
sea change.
Ordinary citizens who want to get the profits of carrying the American
mails must build their boats in American ship-yards; but the syndicate
got members of Congress to grant them by law that which all others must
earn.
Public-domain text, read in full here on John Shaqi.
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