SUBSIDISED MAILS.

Dominion, Volume 1, Issue 206, 25 May 1908, Page 7

SUBSIDISED MAILS.

AMERICA'S POLICY.

PROPOSALS DEFEATED. THE TWO GRADES TO BE RETAINED. 8Y TELECHAPH— PRESS ASSOCIATION—COFi'RICin. NfiVJ York, May 22. A ,conforonco of the two Houses at Washington, relating to tho Post Office subsidy, accepted the Senate's amendment providing for. a subsidy to carry mails, to Japan,' China, Australia (? Australasia), South America, and- tho Philippines,, vessels of tho second-class to bo paid at tho samo rate as thoso of the first-class. . DECISION OF THE HOUSE. ' (Rec. May 24, 4.40 p.m.) NOW York, May 23. Tho United States Houso of Representatives rejected the mail subsidy as agreed on by,tho Confcrenco'. SAN FRANCISCO SERVICE. TWO BATTLESHIPS TO ONE TRADER. Tho above cablegram has a very important bearing 011 the Sail Francisco mail service, as well as.on other similar ventures of tho United States mercantile marine. The subsidy which, according to tho cablegram, a conference of tho. Houses sanctioned, but which the House subsequently rojectcd, is that fought for by Senator Gallinger and-by the mercantile and shipping interests that are behind him. Mr. Gallinger's Bill authorises tho payment to vessels of the second class, on the routes to South America,' tho Philippines, Japan, China, and -Australasia, of subsidy at tho rate at present applicable to vessels of the .first-class. This is identical with-the terms of the cablegram. Tho rate paid to first-class vessels, which it' was proposed to pay to those of tho second-class, is lGs. a mile for the outward voyage. The report in which tho United States Consul-General at Auckland pleads strenuously to his Government for a subsidy adequate to maintain r a sixteen days' San Francisco to Auckland service was published oil Fobruarv 27. Tho following.com-. ments by Senator Gallinger complete the case from tho American mercantile marine point of vieT.

Senator Gallinger emphasised tho decline of the mercantile marine. Even for the cruise of tho Pacific fleet foreign steamers had been chartered to carry coal. Ho .went on to say:— 'Only eight of fifteen ships that wore plying across the Pacific Ocean last March are ' left. Since tho Shipping Bill of the last , Congress was defeated, almost one-half of our feeble American Pacific naval reservo has disappeared, and Evans steers-up through the Golden Gate from the Straits of Magellan, wo shall .have the grotesque disproportion in tho Pacific of two , battleships to every, commercial vessel engaged in foreign trade—a sight which has ■ never yet b:en seen beneath tho sun. And unless' the new Shipping Bill is speedily passed, we, shall seo an oven more grotesque -disproportion than that—sixteen battleships and not ono commercial steamer in tho Pacific away from tho ports of ;tho United States. For the remnant of our merchant marine in that niighty ocean is now. facing' - tho absolute, extinction »whioh long siiico overtook our commercial fleet on tho routes to South America.

The adoption'of his principlo, Senator Gallingor predicted, would revive tlio waning American marine, and all that his Bill sought could-bo accomplished for 4000,00M01. a.year. It would strengthen the. Pacific lines and creato' now lines to the Southern Hemisphere. VJt would, ho said, promptly establish a line from 'the Atlantic' Coast to Brazil, and another to Arrontfna,a line from; the .South. Atlantic or Gulf Coast to South America and similar communication to tho Pacific Ocean./ The proposed payment, for these advantages, would be about half the amount England and Franco now pay for their steamship sorvico and less than is paid by Japan. Last year the United. Statos mado a profit of 3,G00,0f10d01. on its carriage of foreign mail, and; lie hoped to have at least that amount devoted to building "up' tho foreign mail service. At present the United. States spent lent on mail subsidies than : was paid by'tho British Govornmont to tlio' Peninsular, and Oriental Company alone. . • , . \