CHAPTER XVI

DURING A HALF CENTURY OF DEPRESSION

In 1866, just after the end of the Civil War, the American steam

fleet registered for foreign trade, measured 198,289 tons. The steam

vessels enrolled for coasting traffic measured 885,223 tons. In 1879

the steam tonnage in the foreign trade had fallen to 156,323, while

the coasting tonnage had passed the million mark. In 1896 the coasting

fleets measured more than 2,000,000 tons, while the foreign trade ships

measured 264,289 tons. In 1908 the coasting steamers reached a tonnage of

4,055,295,--double the figures of 1896, and the registered tonnage was

598,737,--more than double that of 1896, but so far below that of the

coasting tonnage as to warrant a serious inquiry into the causes which

had created the contrast.

[Illustration: Four-master _DIRIGO_

First steel ship built in the United States]

Before entering into this inquiry, however, it will be of interest to

consider several features of the growth of the coasting traffic. First

note that the cheap rates of transportation afforded by the ships running

from such Southern ports as Savannah, Charleston, and Norfolk to Boston

and New York have had a most remarkable influence upon the agriculture

of the Southern coast States. Where once cotton only was raised, or

cotton and tobacco, the land-owners are producing cargoes of vegetables

at a season when such truck can be produced at the North only by the use

of hothouses. The health of millions of people at the North, and the

prosperity of other millions at the South, have been greatly promoted

by the coasting steamers. At the same time the coast lines of railroads,

to secure a share of the traffic which was originated by steamers, have

improved their service so far that strawberries and string beans have

right of way over passengers.

A natural evolution of traffic alongshore has been seen in the extension,

so to speak, of the railroads across both salt and fresh water. Soon

after the Boston and Providence Railroad was opened (June 15, 1835),

its directors made an agreement with a line of steamers to New York

under which the vessels of rival lines were excluded from the terminal

facilities of the railroad, and the passengers from the rival lines had to

wait hours for a train on which to continue their journey. In 1845 Daniel

Drew, a director of the Providence and Stonington Railroad, became the

president of the line of steamers running from Stonington to New York,

and the two companies, for the purposes of traffic, were operated as one.

The railroads that terminated on the shores of Lake Erie engaged in the

Lake traffic at an early date by establishing ship lines that gathered

freight at all Lake ports of importance for transportation to the East,

and, of course, carried the traffic from the East to the farthest points

on the Lakes. These steamers had a marked influence on the development of

the West. Of such lines as that which runs from Galveston and New Orleans

to New York in connection with the Southern Pacific Railroad, only mention

need be made, but the fact that the extension of railroads in this way

across wide stretches of the waters of the country, has had a marked

influence upon the prosperity of the country as well as upon that of the

railroads, is memorable.

Another notable feature of the coasting trade is a revival of the old

system, practised by such merchants as Derby, of Salem, when they built

ships especially to carry their own goods to market. Thus, when petroleum

was found in Texas, the Standard Oil Company built many vessels to carry

the crude oil from the wells to the refineries at New York. The oil was

taken through pipes from the wells to the ship, and it was pumped from the

ship into tanks at the refineries. With the aid of such port facilities

the cost of transportation was reduced to the lowest figure.

The United States Steel Corporation, owning ore beds near Lake Superior

and mills near Pittsburg, built a fleet of ships to carry the ore to

points on Lake Erie whence it could be shipped on a private railroad

to the mills. The ore in the beds was scooped up with steam shovels and

dumped into cars, by which it was transported to high trestles on the edge

of the harbor. On the trestles it was dumped into pockets, from which it

fell through chutes into the vessel, the hatches of which were spaced to

correspond with the spaces of the chutes. A cargo of more than 10,000 tons

has been loaded in two hours. At the port of discharge other scoops (a

sort of dredge), made to operate through the hatches, lift the cargo out

of the ship at a rate of more than a thousand tons an hour.

The great coal companies of the East deliver their coal in similar pockets

on the coast, but they transport a large portion of it thence to the

consumer by means of tugs and barges. In proportion to the coal carried,

the tug-and-barge system costs less than cargo-carrying steamers. The

tugs, with their high-priced crews, are kept moving; they tow the barges

in "strings" to their destinations, dropping one here and another there,

until the last is at the pier. Then they return, picking up the barges

that have been unloaded, and take them to the pockets for more coal. The

barges have small crews of low-priced men. The expense of waiting for

the discharge of the coal is therefore less than if a steamer had carried

the coal; it is even less than the expense of a schooner lying thus. The

systems of handling cargoes in coarse freight trades of the American coast

are, perhaps, the most perfect in the world.

Naturally, extensions of the railroad lines have been made across deep

water. The Pennsylvania Railroad established the American line from

Philadelphia to Liverpool in 1871. The Baltimore and Ohio established

the Atlantic Transport line to Europe. The Louisville and Nashville

created lines from Pensacola to several countries, including Japan and

China. The Illinois Central has lines from New Orleans. The Occidental

and Oriental Steamship Company was organized to carry the freight of the

Pacific railroads from San Francisco to the Far East. Near the end of

the nineteenth century the Southern Pacific Railroad bought an interest

in the Pacific Mail. The Northern Pacific was served for years by the

Boston Steamship Company, and the Great Northern Railroad built two of the

largest cargo carriers in the world for an extension of service across the

Pacific. Most of the ships in these extensions of railroads have been of

American build.

In oversea traffic the through bills of lading and special terminal

facilities gave the ships owned by railroads special advantages in the

world's traffic. A great corporation is able to purchase supplies at the

lowest prices. Further than that, it is not infrequently advisable to

carry freight on ships at an actual loss in order to provide freight for

the cars in which it can be carried with profit.

Another American adventure at sea that is of interest here was the

evolution of the United Fruit Company. Individual dealers in perishable

products of the tropics found it profitable to unite in gathering bananas

and other fruits, and in chartering ships to bring them to the United

States. As the business continued to increase, the need of swift ships,

and for fittings to preserve the fruit in the best condition, led to the

building of special kinds of ships (chiefly under foreign flags) and of

machinery for loading and unloading the cargoes at the terminals. In the

meantime, the speedy ships employed had proved attractive to passengers,

and because passengers could be carried without decreasing the efficiency

of the ships as fruit carriers, efforts were made to increase this branch

of the traffic. In time the company built hotels for the comfort of

the passengers at points in the tropics where a comfortable hotel was a

surprise to the experienced traveller. Then because the well-contented

fruit farmers of the tropics were unwilling to keep up with the demands of

the trade in either the quantity or the quality of the fruit, the company

bought land and produced the cargoes needed by their ships.

The Standard Oil Company employs nearly a hundred ships (chiefly under

foreign flags), which it has built for the purpose, to transport its

products to foreign countries. And there are other corporations that own

ships as parts of their business equipment.

These American enterprises are of the utmost importance to the story of

the American merchant marine, because they are the most modern features of

our water-borne traffic. The great corporation is doing an _ever growing_

share of the world's work, and the growth is an economic evolution that

must be forwarded as well as controlled. In spite of the prevailing fear

of great aggregations of wealth, it is worth while to inquire whether a

further combination of corporate interests might not help on a revival

of the American merchant marine. Suppose that a ship-building "trust"

were united with the steel-making "trust" and the aggregation were to

make a traffic agreement with a combination of railroads extending from

the Atlantic to the Pacific, under which special low freight rates were

obtainable; is it not conceivable that this powerful corporation might

solve the problem of ships able to compete on deep water? Although the law

now prohibits such combinations as this, may we not hope that the American

people will yet learn how to preserve themselves from oppression, and the

fear of it, without hampering the men who are able and eager to do the

world's work on the world's terms?

In any consideration of a revival of the American merchant marine, it

is necessary to view candidly the conditions which our ships must face.

Emphasis is laid upon the need of candor, because in such discussions

of the matter as have been had in periodicals, and before committees of

Congress, the plainest facts of history have been frequently misstated,

and, at times, deliberately misrepresented. If one-half the ingenuity

and energy that have been used in arguing for the subsidy policy had been

expended in evolving a revolution-making type of ship, we should have had,

long since, a merchant marine worthy of the flag. Further than that, while

an appeal to sentiment is justified, the matter ought to be viewed first

as a cold matter of business.

Is the deep-water carrying trade worth the attention of American

capitalists? It is a curious fact that in the hearings before the

committees of Congress that have investigated the state of our shipping

since the Civil War, not one word has been said about the dividends paid

by the ocean carriers of the world. The reports of the committees assume

that there is great profit in such shipping. One adroit advocate of the

subsidy system says "the European steamship combinations ... now derive

an income of about $200,000,000 a year from their control of our carrying

trade" (_Atlantic Monthly_, October, 1909), leaving the reader to suppose

that that great sum is divided as net profits.

As a matter of fact, the International Mercantile Marine Company, one

of the larger corporations thus engaged (it is largely in the hands of

American capitalists, too), has paid no dividends as yet (1909), and

even its bonds sell below par. When the Cunard Company wished to build

two ships to excel the swiftest of the German liners, it was unable

to do so until the British government loaned it the necessary capital

under conditions that amounted to a gift of the total cost of the ships.

According to the _Financial Times_ (London), dated Wednesday, April 14,

1909, the highest dividend paid by this most highly favored of all the

British subsidized lines during the last fourteen years (1895-1908) was 8

per cent, which was distributed in 1900. The average distribution for the

fourteen years has been 3.17 per cent a year. In 1895, instead of making

a profit, the company lost £40,000. In 1904 there was a loss of £66,700.

In 1908, while operating the two splendid and thoroughly well-advertised

record breakers which it had received as a free gift from the British

government (the _Mauretania_ and _Lusitania_), it made the enormous loss

of £249,800. A letter from the company to the writer admits that these

figures are correct.

Said James A. Patton, then one of the foremost grain exporters of the

United States, in a hearing before the Merchant Marine Commission of

Congress in 1904 (Sen. Rep. 2755, 58 Cong. 3 sess. p. 714):--

"The ocean freight market has been so low during the past two years that

at times the ship agents have offered to transport grain to Liverpool and

London for nothing, to take it as ballast. Recently we have shipped corn

from Boston to London at a price less than that ... less than nothing,

owing to duties the port dues in London, which absorbed more than the

freight rate received."

The conditions described by Mr. Patton are out of the ordinary, of course,

but conditions which have kept the dividends of the well-subsidized Cunard

Company under 3 per cent have prevailed for thirteen years. The company

was able to earn the 8 per cent dividend in 1900 only because the war

with the Boers created an extraordinary demand for ships to be used as

transports, and these having been taken from the general carrying-trade

freight rates rose to an abnormal point. Leaving out the abnormal dividend

of 1900, the average distribution has been but 2.8 per cent.

The ocean carrying-trade is performed by two distinct classes of services;

the line traffic, like that of the Cunard Company, and the independent

cargo carrier or tramp service. The tramp will go anywhere and at any time

for a charter price. The income received by the tramps is as uncertain

as that of a prospector in the mining region. In spite of the ease with

which the demand for tonnage is telegraphed around the world the tramps

accumulate on this or that coast in numbers far beyond all needs of the

trade, and rates drop to a point where many of them are glad to get away

in ballast. At such a time, however, a lucky (perhaps a far-seeing) owner

has a ship at a port barren of tonnage, and receives for a cargo that must

go quickly a price that pays half the cost of the ship. It is the lucky

stroke that keeps the seafaring people hoping against hope, just as the

prospector remembers how Creede, of Colorado, made a million out of the

Amethyst.

Then consider the effect of the tides in the business world upon the

carrying-trade. After the war with the Boers the freight rates went to

pieces. Owners ceased building new tonnage. The ship-builders, to keep

their forces together, offered to construct the best of modern vessels at

cost of construction. Thereupon new capital came into the trade, and some

men of experience also placed orders. In this way an excess of tonnage

was kept afloat. Meantime much old tonnage in the progressive countries

like England and Germany was placed on the market at forced sale, and

these ships were bought by continental owners who patched them up ("cheap

repairs for the cheap ones"), and sent them, with cheap crews, looking for

cargoes. It must be kept in mind that Chinese owners, who can hire stokers

at $6 a month, are competing in the world's traffic, as well as owners

who have to pay $40 a month for the same kind of work. Where the Chinese

owner can make money, and the owner of the best of modern freighters can

live, and even make a lucky stroke, now and then, the owner of the average

tramp keeps her running because the losses while she is in commission are

less than when she is laid up in ordinary. The tramp traffic is precisely

like mining in that the luck of the few keeps the many trying. Moreover

the trend of business has been, for some time, away from tramps and into

regular line ships, and that is a fact worth serious consideration.

The average profit of the lines of steamers is well set forth in the

statement of the Cunard Company, unless, indeed, that statement is more

favorable than the average facts warrant. The Hamburg-American Line

dividends during the past fourteen years have averaged 5¾ per cent per

annum, and it is likely that but one other ship-owning corporation has

done as well on deep water. It is a world's traffic even for a line that

plies between New York and Liverpool only. The price that a Swedish tramp

will accept for wheat in the River Plate, and the rate which the Japanese

will accept on the coast of China, both affect the North German Lloyd at

Bremen. A few lines, especially those having special trades, make good

dividends. The United Fruit Company's ships are among the exceptions

because of the peculiarities of the business. But every ship-owner knows

that on the average there is no great part of the world's work that pays

smaller dividends than carrying cargoes across deep water.

The people of the United States, before taxing themselves to add to the

congestion upon the high seas, should ask themselves whether success, when

attained, will be worth the cost. Would a sensible American farmer, able

to earn $3 a day grafting orchards, work overtime in order to compete with

a foreign ditch digger receiving $1.50?

If we decide to make the fight for a share of the business of the sea

it will then be of the utmost importance to consider the strength of

the opposition to be overcome. In this inquiry no account will be taken

of ships of the sail. For while schooners fit to carry from 3000 up to

perhaps 10,000 tons' dead weight came into use in the coast coal trade

at the end of the nineteenth century, and proved profitable, it is absurd

to think of any kind of sailing ship in connection with future traffic on

deep water.

According to the last Report of the Commissioner of Navigation (1908), the

United Kingdom had, in 1907, 4105 steamships, measuring 9,156,356 tons,

with crews aggregating 185,867 men (this "includes masters as well as

Asiatics and Lascars"), in the foreign trade, besides 239 ships of 240,983

tons, manned by 5362 men, engaged partly in the home, and partly in the

foreign, trade. The tonnage of 1907 was about four times as great as it

was in 1880.

The German Empire had, in 1908, 2521 steamships, of 4,070,242 tons, manned

by 65,568 men. This tonnage was twice as large as the tonnage of 1900.

In 1908 the Japanese had 626 steamships of 1,076,070 tons, which was twice

the tonnage registered in 1900. The number of men in the fleet is not

given, but it was at least 16,000.

The steamships of the world, exclusive of those of the United States,

measured, in 1906, more than 30,000,000 tons. Perhaps 800,000 men were

employed on these ships, and there was an experienced force of owners and

managers on shore to look after the interests of the fleet.

The quality of this vast sea power must now be considered. In this

point of view it is a most discouraging fact that about all important

improvements of recent years in the steam engine have been made by

Europeans. Between 1855 and 1865 steam pressures in boilers ranged from

20 to 35 pounds per square inch, and the consumption of fuel was about

3 pounds per horse-power-hour. Compound engines came into general use

between 1865 and 1875, when boiler pressures rose to 125 pounds, and the

consumption of fuel decreased to 2.2 pounds and even less. Between 1885

and 1895 twin screws and quadruple expansion engines were adopted for the

swiftest ships, and the improved engines were used on many cargo carriers.

Boiler pressures reached 225 pounds and upward, and the coal consumption

dropped as low as 1.4 pounds. Then came the far-reaching change to the

steam turbine, on ships of 14 knots and upward. For slower ships the

turbine in combination with reciprocating engines has been found more

efficient than the old-style engines, while a combination of the turbine

with the dynamo for still slower ships is now in hand and sure to make

headway. In all these matters Europe has taken the lead.

In the turbine, with its combinations, it is believed that the

steam-engine reaches its highest possible efficiency, just as sails

reached their highest efficiency as used on the American clipper. But

a new machine, still more economical, has been invented--the gas motor.

Coal is used for the generation of gas, which drives internal-combustion

motors, much like those seen on automobiles. The consumption of fuel is

thereby reduced far below that of steam engines.

While the marine steam-engine has been perfected in Europe, it is

worth noting by the way that the producer-gas engine, though yet in the

experimental stage for ship use, has been brought to a higher state of

perfection for land use in America than in Europe. Magazine articles by

marine engineers have been published, urging American ship-owners to adopt

this new method of propulsion, because it is to make a revolution almost

as far-reaching as the iron screw steamer made in 1855. But the American

ship-owner refuses to see his opportunity. Having certain profits with

old-style engines in the coasting trade, he is willing to let foreigners

do the experimenting.

All of this is to say that the ship-owners of foreign countries are at

least as far-sighted and enterprising as those of the United States.

Some of the facts in the story of our coasting steamer trade are

of interest in this point of view. The most interesting division of

this fleet is found upon the Great Lakes. The screw propeller and the

compound engine were successfully introduced on the Great Lakes before

1850--several years before the iron screw steamer of the British began its

deadly inroads upon our salt-water trade--but the Atlantic coast remained

indifferent.

After the Civil War tugs came into use for towing the sailing vessels

through the Detroit and Huron rivers, and from these the use of barges in

"strings" behind steamers that carried cargoes as well as served as tugs,

was developed. This system ruled upon the lakes until the evolution of the

iron ore trade led to the building of ships so large that they were unable

to handle barges. In 1902 the ship able to carry 10,000 tons arrived.

Still larger ships have been built since 1902. A ship that can carry

12,000 tons' dead weight needs but thirty-five men, all told. The average

cost of carrying freight on the best ships of the lakes is less than .8 of

a mill per ton-mile. Through natural development this splendid efficiency

has been attained, and the fleet in 1908 numbered 1942 ships measuring

2,341,686 tons.

[Illustration: Seven-masted Schooner _THOMAS LAWSON_]

A feature of these ships to be considered is that they are all built for

passing through certain shoal channels, the Welland Canal, and the canal

at the rapids at the outlet of Lake Superior, for example. These channels

have compelled the designers to adopt one cross-section of hull for all

ships (at least below the water-line), and that cross-section is the

largest that will pass through the channels. Because of this similarity

of models the lake builders have been able to carry specialization in

the work of construction as far as any builders in the world, and much

further than it is carried in the Atlantic coast yards, where builders

may have a battleship, a harbor tug, and a side-wheel passenger boat on

adjoining ways. The lake ships can be built for the lowest price of any

in the United States.

Contemplation of these facts, and upon the further fact that lake

engineers seemed to be about the best the world had ever seen, led the

lake capitalists to organize the American Navigation Company, which built

two large cargo carriers, sent them down to salt water, and entered the

general cargo trade. Those vessels were among the most economical ever

built in the United States, all things considered, _but they were unable

to compete with the European ship_.

A story told by A. B. Wolvin to the Merchant Marine Commission is

significant here. A company of which he was president operated a line of

steamers from Duluth and Chicago to Montreal and Quebec. The steamers

numbered ten of the maximum size for passage through the Welland

Canal--250 by 42 feet large, with a draft of fourteen feet, and a

carrying capacity of 2200 tons. The cost of these ships, built under the

best American conditions of specialization, was $140,000 each, and the

operating expense was $135 a day each. While the company was engaged in

its work, a steamship man from Sweden came and offered to put on twelve

ships of the same size, each at a charter price of $2900 per month. His

ships cost but $90,000 each, and the wages of crew and other operating

expenses were so much lower than the American standard that he could make

money at a charter price of $1000 a month less than the cost of operating

the American ships. Having used these Swedish ships long enough to know

them (for it was necessary to accept the offer to keep the Swede from

starting in opposition), Captain Wolvin testified:--

"They are better from the standpoint of construction.... The vessels carry

well; they run well. We have no trouble with the crews."

The crew of the Swedish ship numbered seventeen; that of the American,

twenty-two. And the Swedish wage was far less.

The bearing of these facts in any consideration of the power of the

ship-owners who are now in control of the deep water traffic of the world

is obvious.

Other views of the world's carrying trade are of interest here. The

Hamburg-American Company runs steamships in sixty-eight different lines.

There is a line of its ships from Europe to each port of importance from

Montreal to Newport News. It maintains other lines to the important ports

of the West Indies, to Ports Limon and Colon on the narrow mainland, and

to every important port on the north, the east, and the west coasts of

South America. It reaches nearly every port of importance on the coasts

of Europe, and down the west coast of Africa. Indeed, on the west coast

of Africa the natives see two German steamers to one under the British

flag. It sends other ships through the Suez Canal to skirt the coast of

Asia as far as Vladivostok; it maintains cargo gatherers among the islands

along shore, and then, from Japan, it reaches across to Portland, Oregon,

where it connects with our Northern Pacific Railroad. It runs every kind

of ship from the 23-knot passenger packet to the economical cargo carrier

that uses perhaps little more than ten tons of coal a day. The traffic

of the world is, in a way, within the touch of this one corporation. The

worldwide tides of commerce are felt and noted daily in the home office,

and while losses are suffered, here and there, through depressions in

business, _or through competition_, the profit made by the vast fleet as

a whole is sufficient to yield regularly the modest dividends that satisfy

the owners.

The fact that the powerful North German Lloyd is allied with the

Hamburg-American in all matters that affect German commerce and trade is

also a matter of interest in this place.

To show now how an effort to force a new company into an established trade

affects freight rates, it is necessary only to refer to such an instance

as the "war" that prevailed in the trade from New York to South Africa in

1902. As Smith notes in _The Ocean Carrier_, the rival steamships lost

from $10,000 to $15,000 on every trip. Moreover, the low rates were of

no advantage to commerce, for commerce demands stability first of all.

It is worth noting, too, by the way, that in the course of this war,

goods were carried by English steamers from New York to Africa for less

than was charged by the same companies on ships from London to the same

destination.

When American capitalists tried to establish a line of ships from New York

to Brazil some years ago, the venture failed. One reason for this was

the higher cost of American ships and crews. Another was extravagance,

especially in providing terminal facilities at Rio de Janeiro. Old

merchants in Brazil still smile when they talk of what the American

line did in that way. But the most important reason for failure was the

advantage enjoyed by British rivals in the triangular line route followed

by their steamers. In the currents of commerce on the Atlantic the British

manufacturer ships large quantities of goods to South America, the South

American producer ships large quantities of coffee to the United States,

and the American producer ships large quantities of food-stuffs to Great

Britain. The British ships had profitable cargoes from home to Brazil. At

Rio de Janeiro and Santos they cut the rates far below cost, and then on

arrival in the United States they secured cargoes for home at a profitable

rate. The profits on the two trips enabled them to endure the cut on the

middle passage. But because American manufacturers had little to ship to

Brazil the American ship lost money on both passages.

Every business man understands the advantages of one who is

well-established in any trade, over one who is just beginning, but one

method by which established lines of ships hold their trade must have

mention. The merchant who sends all his goods by the established line

receives a rebate of 10 per cent on the amount of his freight bill, the

rebate being calculated once in six months, say, and the payment being

made six months later. If the merchant ships an ounce of stuff by a rival

line he loses all the rebate, and he may be punished in addition, if the

rival is a new line. The merchant, having rivals in trade, feels the loss

of the rebate seriously; his rivals by loyalty to the established line

continue to enjoy the rebate even when rates are cut below those of the

new line, and below cost. In such trades as that between New York and

Rio de Janeiro, where a number of lines are plying, the established lines

unite their entire resources to kill off a new line trying to enter the

trade.

When the American people have before them any proposition for the revival

of the American merchant marine, they should keep in mind that ships

designed for the purpose and at least in sufficient numbers, are afloat

in every trade of the world; that the freight rates are maintained

at a point where the profits are as low as any afforded by any branch

of the world's work; that the men doing the work have been developed

with the steam carrying trade, just as the splendid American sailor of

the sail was developed by his environment, and they are therefore at

once well-informed, alert, enterprising, resourceful, persistent, and

merciless. Observe, too, that in the work of the high seas man faces

primeval conditions, brute force prevails as nowhere else, and the fittest

survives.

Perhaps a definition of terms is needed here. By fitness we mean the

ability to do the world's work on the terms which the world offers.

We have learned to build bridges and locomotives on those terms, but,

in spite of the fact that our ship-builders and ship-owners are fully

protected in the "home market," they have not yet learned how to combine

the locomotive and the bridge into a ship fit to compete with the

unsubsidized ships--the cargo carriers--now in the world's traffic.

In connection with the known degree of efficiency of the world's merchant

marine, as now afloat, consider a statement that can be found on page

1248 of the _Report of the Merchant Marine Commission_. It is, perhaps,

the most discouraging statement that has been made in connection with our

merchant marine.

"The statistics of loss of ships at sea afford matter for reflection....

They show, as the United States Commissioner of Navigation has summarized

them, that out of every 100 American seagoing steamships over 100 tons,

for the past seven years, on the average 2.24 have been lost each year;

that out of every 100 foreign seagoing steamers over 100 tons, for the

same period on the average 1.98 have been lost each year." (See also An.

Rep. Com. Nav., 1904, p. 19.)

[Illustration: A Modern Clipper Ship and a Modern Brig

By courtesy of _Munsey's Magazine_]

When American ships were supreme they were insured at a less rate than

those of any other nation, and the insurance was placed, to a large

extent, in England. Because the American sailor of the sail, who had

been evolved by 200 years of American environment, was able to handle his

ship better than any other, he paid lower premiums to the underwriters.

But if this be true (and no one disputes it), it follows that the higher

percentage of losses among modern American steamers proves that the

American environment, since the steamer era, has produced a steamship

sailor who is less efficient in his work than our old-time sailor of the

sail was in his, and less efficient, too, than the foreign steamship

sailor of the present day. It is an important fact that a man may win

laurels upon the weather yard-arm in reefing topsails and yet be of no

particular value as an oiler or an assistant engineer in the engine-room.

At any rate, any effort to revive the American merchant marine will have

to be made in the face of the record of American losses, and the influence

of that record upon insurance rates.

Then in spite of the "boundless resources of our country," and "the

intelligence of the masses," and a "protective tariff" of twenty-five

cents a bushel, the farmers of "the overcrowded nations of Europe" are

able to sell potatoes in New York at a profit. And millions of dollars'

worth of factory goods made in Europe pay ocean freights, pay the

tariff tax, pay the commissions of agents, pay the freight rates on our

railroads, pay the margin of our retail merchants, and are then sold at

our doors in competition with the products of our workmen.

The fact that the tariff wall fails to keep out foreign goods is a matter

for serious attention in every point of view, but it seems especially

necessary here to consider the influence of "protection," as it is called,

upon those features of American character which we call self-reliance and

the spirit of enterprise. Under the prevailing system how is it possible

for the American people to develop the aggressive manhood that is needed?

One other feature of the opposition that will be encountered in any effort

to create a new American merchant marine is yet to be described--the

support which the existing carriers will receive from their governments

during the conflict; but before that is considered it may be well to

review the means by which it has been proposed to increase our shipping.

Naturally a people accustomed to "protection"--a people who make boast of

a system that is at best a confession of a lack of ability to meet open

competition--have turned, first of all, to "government aid."

Among the first provisions of Congress for the benefit of American

shipping after the adoption of the Constitution was a 10 per cent

discriminating duty on all goods imported in foreign ships. It is

asserted that this discriminating duty supplied our ships with cargoes

from foreign ports to American, and was thus a feasible and satisfactory

"protection." A 10 per cent duty amounted then, and it would amount now,

to more than the whole freight, upon some goods. It is also asserted that

this discrimination was made in order to "protect" our shipping. But in an

extended argument, which was made before the Merchant Marine Commission

(in the _Report_ of which the curious reader can find it), by Hon. E.

T. Chamberlain, Commissioner of Navigation, it was proved that "in the

minds of those that applied" it (Jefferson, Clay, Gallatin, John Quincy

Adams, etc.), the law was provided as a means of retaliation only--for

the purpose of preventing discrimination against American shipping. The

fact that our government anxiously strove from the first to secure fair

reciprocity confirms this view. Further confirmation is found in the

fact that our old-time ship-owners were unanimous in their support of the

government in its efforts to secure reciprocity.

Those who advocate the policy of discrimination for modern application

assert that our shipping reached supremacy at sea while the discriminating

policy prevailed as to Great Britain, and that is true, because the

British did not accept our offers of reciprocity until 1849. But the

assertion that our shipping became supreme _because_ of this policy

is made only by those who are unable to appreciate in full the facts

of the case. For our ships that were engaged in the trades between

foreign countries, beyond the reach of any "protection" afforded by

"discrimination" or any other artificial stimulation, at one time measured

a million tons. Why were those ships favored beyond all others by the

merchants who loaded them? Why did merchants of rival nations--why did

the British merchants, for instance--charter these "Yankee" ships, if it

were not because they were the most efficient in the world?

It is a slander upon the American sailor of the sail to say that he won

the long pennant through coddling.

As a system for modern adoption "discrimination" is objectionable for

three reasons. One is that it provides at best for keeping our ships in

trades between home and foreign ports only; it does not provide for trade

between foreign ports. Next it is a system for supporting ships that are

confessedly inferior to those already in the trades--it places a premium

upon inefficiency. Last of all it is a system that must excite all foreign

governments to retaliation; and that those governments will be eager to

retaliate, and that they will find ways enough for doing so, is beyond

doubt. In connection with this statement it is necessary to keep in mind

that we shall soon cease to export wheat in any form, and the growth of

population is so great that we shall soon cease to export other, perhaps

all other, food products. Before inviting retaliation we must look ahead.

Indirect discrimination has been proposed. Under this the ships of any

country were to be permitted to bring in without discrimination goods

produced under their flag; but goods brought from any other country were

to be subjected to a discriminating tax. Any analysis of our imports,

however, shows that if British goods were taxed when brought here in any

but British ships, all such goods would be forced into British ships at

once, to the great advantage of the British shipping. They could not at

present, nor for years to come, be forced into American cargo carriers.

As the system would in like manner help German shipping, the policy would

but make our task the harder.

Before considering the policy of paying direct subsidies a glance at the

oft-repeated assertion that our shipping is "our one unprotected industry"

seems necessary. What does "protection" provide for any industry, or what

does it pretend to provide? Simply the home market--this and nothing more,

at best. This is done by laying a tariff upon imports. But the American

shipping is now and always has been protected that far--absolutely

protected, in fact, by prohibition. The importation of ships has been

forbidden, and the use of foreign ships in the "home market" has been

reserved to home-built ships for nearly 100 years. If "protection" could

enable any industry to expand from the "home market" to the foreign, then

the coasting trade industry should have expanded long since over all the

world. Unhappily, however, the profit found in well-protected industries

does but tend to make the beneficiaries contented, and willing to let well

enough alone.

Ever since the Civil War efforts have been made to induce Congress to

modify the navigation laws far enough to enable Americans to buy ships

in the cheapest market and sail them under the flag. It is said that this

would give our shipyards so much employment in repairing the foreign fleet

so to be purchased that our builders would soon learn how to set afloat

ships as cheap as any in the world. It is not easy to treat seriously

one who supposes that repairing tramps would develop the distinctive

type of ship able to produce results in ton-miles, which is imperatively

needed; but when it is remembered that free trade in ships quickly drove

the British from the sailing ship to the screw steamer, the proposition

looks attractive. For free trade--the necessity of swimming unaided in

rough water or drowning--might compel the American builder to produce the

revolution-making ship for which we are to hope.

We now come to the policy of paying direct bounties as a means of creating

a merchant marine; and nowhere are candor and accuracy of statement more

important.

Bounties were paid in the colonial days. Virginia gave a subsidy of

tobacco to induce her people to build ships, and they built one ship. When

the whale fishery was depressed, just after the Revolution, Massachusetts

gave a bounty on Massachusetts oil, with the result that the market was

flooded, and the fishery was depressed more than ever. In spite of a

bounty paid on oil by Rhode Island, her sailors continued to favor the

slave-trade. For some reason those who favor subsidies as a means of

reviving our shipping never quote these facts.

Of the effect of subsidies upon the Collins Line and of other subsidies,

something has already been said. The first grant to the Cunard Company

was made for military and diplomatic purposes only, but when subsidized

American ships appeared, the Cunard grant was increased to maintain the

British flag in the trade. That is a fact beyond dispute.

It is manifest that the subsidy was of benefit to the receiver. It helped

the company to build improved ships. It gave the builders some experience.

It provided schools for the instruction of seamen in the art of handling

steamships. The subsidizing of the Royal Mail, and of the lines to other

parts of the world, where private enterprise was unequal to the occasion,

created an increase of commerce as well as some addition to the shipping

of the country.

With equal candor the evils of the system apparent in those days ought

to be told. The subsidized Cunarders not only drove off the American

subsidized lines but they drove away the unsubsidized Great Western line.

_They depressed all British shipping that entered the trade to New York

and Boston._ If they had had a larger subsidy they would have spread to

Philadelphia, and thus would have prevented or delayed the establishment

of the Inman Line. The British shipping in the trade to the northern ports

of America was not increased by the subsidy to the Cunard Company; it was,

on the contrary, restricted. Paying a subsidy to establish a line where

no steamers had traded before, and none could trade without government

aid, was a very different thing from forcing a new line of steamers into

trade already supplied with shipping, and even congested. Paying a fair

price per pound to a ship for carrying the mail ought not to be confused

with paying a subsidy. The first Cunard mail pay was not a subsidy; it

was a low price for the work done. Senator Rusk declared, in the document

already quoted, that the British Post Office Department "derived a _clear_

income of no less than $5,280,800" from the contract in the first six

years it was in force. After Collins began running his ships by aid of a

subsidy the British subsidized Cunard to enable him to compete.

When the Collins Line reduced freights from £7 10_s_ to £4, _commerce_

was certainly benefited, but the reduction was ruinous to _shipping_. It

was especially injurious to the American packet lines. The advent of the

subsidized Collins Line did more to injure the American _shipping_ of its

day than any other influence except that of the iron screw steamer.

Then the effect of admiralty supervision upon the subsidized ships

was an incubus upon progress. Naval men are usually conservative, and

conservatism often means stupidity. Thus, after the British _Dreadnought_

had demonstrated the efficiency of the turbine engine our American naval

engineers provided one battleship with turbines and another of the same

model with reciprocating engines in order to learn whether the turbine

was worth installing in future ships! The Cunard ships were built of

wood, long after iron was known to be a better material, because of naval

stupidity. Worse yet, when the requirements of the merchant service became

imperative the rules of the admiralty were evaded--ships were reported to

be fit for war cruisers when in fact they were useful as transports only.

After the Civil War, Congress provided subsidies by which a line from

New York to Rio Janeiro, another from San Francisco to China and Japan,

and a third from San Francisco to Hawaii, were established. Under these

contracts the policy did not have quite a fair trial. The beneficiaries

by activity in politics created so much opposition that the subsidies were

withdrawn before the effect was fully apparent.

By the Act of March 3, 1891, a subsidy was again provided under the thin

disguise of paying for carrying the mail--a reprehensible plan, because

if subsidies are justified, they ought to be paid openly. The fact is that

the methods of indirection employed by the advocates of subsidy have done

much to discredit their system. Under this act ships of 8000 tons and a

speed of 20 knots receive $4 a mile "by the shortest practicable route for

each outward voyage." Ships of 5000 tons and a speed of 16 knots receive

$2 a mile. Ships of 2500 tons and a speed of 14 knots receive $1 a mile,

while those of 1500 tons and a speed of 12 knots receive "two-thirds of

a dollar a mile." This act was designed to maintain lines of ships which

would be useful as scouts, transports, etc., in time of war.

Before stating the effect of this law upon American shipping, certain

facts in connection with the subsidizing of ships by the continental

nations of Europe will be useful. It is a curious fact that while

the annual reports of our Commissioner of Navigation have for years

given much space to the "progress" of the British, the German, and the

Japanese shipping, nothing has been said about the "progress" of the

shipping of France, of Italy, or Austria. The progress of the shipping

of England, Germany, and Japan is stated because government aid is given

to shipping in those countries and shipping makes progress; but in the

other countries, where still more liberal aid is given to shipping, no

progress worth mention is made. The annual report of the Commissioner of

Navigation is made a vehicle for the dissemination of arguments in favor

of the subsidy policy.

A candid examination of the policy of Germany shows that some aid has been

given to lines of ships in the form of liberal pay for carrying mails.

The North German Lloyd receives $1,330,420 per annum for its service to

China, Japan, Australia, and the German possessions in the Pacific. The

Germans thought it better policy to subsidize a line of merchantmen than

to maintain a line of transports to its colonies as the United States

has been doing in connection with the Philippines. The payment to the

North German Lloyd is properly called a subsidy; to give the name of

subsidy to all payments made to German steamers for carrying the mail is

to misrepresent the facts in a way that injures the cause of the subsidy

advocates materially in the eyes of all who know the facts.

The German railroads, which are owned by the government, not only give low

rates on goods intended for export, but extremely low rates are provided

for all materials used in building ships. The fact that special rates

on railroads are used to promote the German merchant marine is worth

serious consideration in the United States, even though such rates are

here viewed with suspicion. The national laws governing our railroads, as

enforced now (1910), are in some respects an incubus upon legitimate and

praiseworthy enterprise. Through ignorance and prejudice the efforts of

our transportation lines to increase our export trade have been seriously

hampered.

Unquestionably subsidies and special rates were provided to extend German

influence by means of shipping. The payment of bounties has been one

feature of the expansion of German shipping. To assert that the bounty

has been the sole, or even the chief, cause of that expansion, however,

is to misstate the facts. The experience of France, for instance, shows

conclusively that a subsidy in itself is not enough to create a merchant

marine. Although the French subsidy is so liberal that French cargo

carriers are able to sail half-way around the world in ballast to get

a cargo at rates that would be less than cost of maintenance for any

other ship, the French merchant marine grows so slowly as to justify the

assertion, made by the late Captain John Codman, that the French mariners

are working against a fiat of nature. The tonnage of 1881, 914,000, was

but 1,952,000 in 1908.

Further than that the German subsidies have been less than those paid

by the British (especially those paid to the Cunard Company), and yet

German steamers are steadily encroaching upon those of the British. The

reason for the progress of German shipping is readily found in the spirit

and habits of the people. Consider the work of the patient, spectacled

scientist in his laboratory--his methods and his aims; consider the growth

of the factory system; consider the effect of the training which all men

receive in the army or navy--how the whole people learn to move as one

man, and as comrades, for the attainment of a worthy national object;

consider how all the people--the men with the hoe as well as the men

behind the guns--are stirred by an attack, or a seeming attack, upon the

Fatherland.

The effect of government bounties upon German shipping is like that seen

when the spectacled German professor of agriculture applies inorganic

fertilizers to crops planted in well-cultivated, humus-filled soils. The

effect in France, and other nations not well prepared for expansion, is

like that when those fertilizers are applied to arid, acid, uncultivated

land. In Germany the soil for the production of shipping was in excellent

condition before the fertilizer was applied. What is the condition of that

soil in the United States?

The American subsidy law has been in operation since 1891. For the service

rendered it provides more liberal compensation than that given to any

German ship. The American Line (now operated as a part of the fleet of

the International Mercantile Marine Company), owns two American ships that

were built for the line and two British ships that were placed under the

American flag by special act of Congress. The subsidy maintains this line

in existence but does not increase it. The Mallory line has been extended

somewhat since the subsidy was given to it. Elsewhere ships that were

maintained under the subsidy have been driven from their route by foreign

competition. The ships run in connection with the Great Northern Railroad,

for instance, were unable to compete with the Japanese line between the

same ports, partly because the Japanese subsidy was more liberal, and

partly because of the greater expense of running American ships. In short,

the law of 1891 has failed to provide an American merchant marine.

Further measures for providing subsidies have therefore been proposed. The

Merchant Marine Commission, after a lengthened inquiry, offered a bill to

Congress which was to provide a line from "a port of the Atlantic coast of

the United States to Brazil," with "ships of not less than fourteen knots

speed," at a subsidy rate of $150,000 a year, "for a monthly service,"

or $300,000 for a fortnightly service. A similar line to the River Plate

was to receive $187,500 and $350,000 according to the service. The same

subsidy was to be paid to a 12-knot line to South Africa. Three lines from

Gulf ports to Cuba, Brazil, and Mexico were to be paid sums in proportion

to the service rendered, and three lines were to be provided for the

Pacific on similar terms.

In addition to providing these lines an attempt was to be made to set

afloat cargo carriers by giving an annual bounty of $5 a ton gross

measurement to all cargo ships continuously in service. On the whole ten

new lines of ships were to be established at an expense of $2,590,000,

and it was supposed that $10,000,000 might be the necessary limit of the

subsidy for the tramps. In the meantime it was supposed that the existing

lines working under the law of 1891 would continue in the service for the

compensation provided.

Passing over the claptrap in the bill about the use of these liners

as scouts,--fancy a 16-knot merchantman scouting around a squadron of

Dreadnoughts!--the bill ought to be considered on its merits because it

sets forth the amount of subsidy supposed to be sufficient to create a

real revival of our shipping, and thus gives an idea, perhaps, of what

sum would be adequate.

Accepting the Commission's statement that the subsidies would prove

sufficient to place the more expensive American ships upon an equality

with the foreign, and "a little more," as was said, it may be assumed that

the new lines would eventually employ sixty or seventy ships. At $5 a ton

the $10,000,000 might put afloat from 300 to 400 modern cargo carriers.

Thus we should, at best, about double our present registered fleet,

which, in 1908, numbered 478 ships. But if we compare that fleet with

the German, which now numbers more than 2500 ships, or with the British,

which now numbers more than 4000, we shall see that even under the best

circumstances we should yet be a far cry from the supremacy of which we

made boast in other days. Indeed, the fleet of liners would not number as

many ships as the Standard Oil Company now employs to carry abroad its

products, while the fleet of cargo carriers could not be compared, with

any satisfaction, to the fleet now in use by the allied German companies

of which mention has been made.

And the ships thus to be set afloat, as they crossed the seas, would

proclaim to the world that they were in the carrying trade, not by right

of efficiency, but by grace of a subsidy.

But now we are to consider whether any subsidy heretofore proposed would

really be sufficient to sustain either liner or tramp. The effect of such

ships upon freight rates, for instance, was stated before the Merchant

Marine Commission, by B. N. Baker, formerly president of the Atlantic

Transport Company, and an advocate of the subsidy system. He said:--

"If you added any more to the open sea traffic (the foreign traffic) of

the United States than 100,000 tons a year you would so demoralize the

general carrying business in rates, both as to freight and passengers, it

would be so unprofitable that no one could go into it, _unless you would

double, and triple that compensation_."

The effect of that building programme upon the organized mechanics of our

shipyards--the strikes for higher wages, and the consequent increase of

prices--need only be mentioned.

Then figure up the expense of the war between the lines from New York

to South Africa in 1902, wherein ships lost $15,000 in a single voyage.

Manifestly the American liners would need all of their subsidy ($15,625,

per voyage) to meet the reductions in freight rates which the opposition

would make. They would thus be no better off than they would be if

they were permitted to enter the trade on even terms with the present

lines--without war and without subsidy. The line to Brazil would yet have

to face the disadvantages due to the triangular service which British

ships maintain, though the decreasing exports of American food products

would reduce those disadvantages somewhat.

In short, one may well doubt whether the proposed subsidy would enable

our ships to overcome the opposition of the powerful foreign interests

that are already in the trade. But if we suppose it to suffice that

far, we have yet to inquire what the governments behind those powerful

corporations would do. Recall the story of the Cunarders _Mauretania_ and

_Lusitania_. The British government gave those two ships to the company

outright on the understanding that it should operate and maintain them

in a condition fit to cross the Atlantic at a speed of 25 knots an hour.

This was done at the time that American capitalists acquired control of

a number of British lines, under the name of the International Mercantile

Marine Company, and formed a working agreement with the two leading German

companies. This combination threatened British supremacy on the North

Atlantic, or was believed to threaten it, and the whole British nation

rose up to defend, figuratively speaking. If that were possible under

those circumstances, it is certain that the "subventions" now given to the

British lines would be increased the moment any American subsidized ships

began to cut into the British carrying trade. Increased subsidies would

then be needed by the American ships. If the American people were to enter

into a subsidy war it is likely that they could endure the strain longer

than any other nation; but is such a war worth while to secure a part in

a traffic that pays the well-subsidized Cunard line no higher profit than

2.8 per cent a year?

[Illustration: Cunard S. S. _LUSITANIA_

By courtesy of the Cunard Steamship Company]

One more argument in favor of subsidy is yet to be considered. With

the Panama Canal and the Monroe Doctrine to defend, it is necessary to

provide sufficient transports and colliers for the exigencies of war. The

spectacle of our splendid war fleet steaming around the world with its

fuel carried in ships under foreign flags, was humiliating to the nation.

Congress should build auxiliaries more rapidly by direct appropriation, or

it should give ample subsidies, however great the sums needed, to maintain

auxiliary ships in the merchant service. Many Americans would gladly pay

their share of the tax for the pleasure of seeing the American flag above

a ship's taffrail, now and then on salt water, in spite of the humiliation

of the fact that it was the tax and not efficiency that kept the flag in

place. A merchant fleet so provided would be a kind of insurance against

the exigencies of war, and even against war itself. With a thousand

American merchant ships afloat on deep water there would be less danger

of an aggressive nation of Europe invading Rio Grande do Sul or menacing

the Panama Canal.

Whether to provide the auxiliaries by direct appropriation or by subsidy

is, or should be, a question of relative expense and efficiency. Such a

question, one would think, might be solved by the rules of arithmetic;

at any rate it is not necessary in the discussion to misrepresent the

attitude of senators from Southern States, nor to say that the former

American supremacy was due to "protection" instead of the ability of the

sailor of the sail.

There are excellent and perhaps imperative diplomatic and military reasons

for maintaining at least one line of swift steamers from the Pacific coast

to the coast of Asia and the Philippine Islands. The ships of this line,

if established, should be fitted, as battleships are, for a cruising

speed of say sixteen knots, with a reserve of power for an emergency,

when they should be able to develop real scout speed--should be able

to run away from the modern twenty-one knot battleships. The value of a

fleet of ships of this kind, in a military point of view, and especially

upon the Pacific, is obvious. A dozen ships of the kind would not be too

many. A fleet of smaller ships, fit for use as naval colliers, might well

be maintained to gather and distribute cargo along the Asiatic coast and

among the islands. We have undertaken the work of developing civilization

in the Far East, and we need to do everything possible to prevent an

attack upon our position there. After squadrons of war-ships nothing

will create a higher respect for our flag among the people of that region

than a fleet of superior merchantmen _avowedly maintained for diplomatic

and military reasons_. In fact a fleet so maintained would impress other

peoples than those of the Far East.

The same argument may be made for the maintenance of swift lines to both

coasts of South America, where we have the Monroe Doctrine and the Panama

Canal to defend. If we establish these lines, a war of subsidies is to be

expected, and the well-established and powerful companies already in the

trades will be wholly unscrupulous in their opposition, not because their

present profits are high, but because they are low; a division of the

traffic will still further reduce the profits which are already too narrow

for comfort. We may be sure, too, that extravagance and inefficiency of

the Collins kind will be found in the management of some of our companies;

but as a diplomatic and military measure the experiment seems to be

worth making. We have a very good precedent in the action of Germany in

establishing a line to its Pacific possessions by a subsidy of a million

a year, which is given for the precise reasons urged herein. It will cost

the United States many times as much as it does Germany, but one who looks

at the matter broadly may well suppose that such an increase of expenses,

avowedly made as a measure for increased military efficiency, might be

worth while, in the end, as a peace measure. For we shall be obliged in

any event, to go on increasing our naval budget to keep even with the

growth of European navies, until the war burden becomes intolerable in

Europe as well as in the United States; and then we shall have measures

for preserving peace more rational than those now in vogue. The sooner

the burden is made intolerable the better.

But while we can provide an ample fleet of naval auxiliaries by means of

subsidies, if we are willing to pay the price, let no one suppose that

such a measure will give the country any share of the world's traffic

worth consideration, not to more than mention supremacy upon deep water.

One method by which the Merchant Marine Commission thought to increase

American sea power is memorable. A heavy tonnage tax was to be laid upon

all ships coming from foreign countries to American ports, and the money

so raised was to be paid to American ships in the foreign trade in return

for carrying a certain proportion of American citizens enrolled as members

of a corps of naval volunteers. The measure looked toward an increase in

the number of American seamen, but it did not become a law.

The communities that have supported nautical schools (New York and

Boston, for example) have had the end in view for which the measure of

the commission was designed. Graduates of these schools are among the best

officers in our merchant marine, and this, too, in spite of the fact that

antiquated ships of the sail formerly served as school rooms, and the boys

were taught to handle the obsolete marline-spike instead of the throttle.

But, at best, these efforts to turn ambitious young Americans from the

opportunities they find on land are inadequate. Congress might have turned

the naval academy into a splendid nautical university for the education

of all Americans who wish to learn the ways of the sea. We appropriate

millions a year for the farmers, not as bounties on their products, but

to teach them, _through experiment stations_, how to do their work. No

one seems to have thought it worth while, however, to make a national

appropriation for the education of merchant seamen.

To confess the truth we have done nothing adequate to the situation

since the Civil War, nor has anything adequate been attempted; but the

people who have promoted the work of our nautical schools have seen

dimly what the whole story of the American merchant marine proclaims.

The pretty pinnace _Virginia_ thirty feet long, as she crossed and

recrossed the Atlantic; the _Trial_ in the Azores and the West Indies;

the _Mount Vernon_ as she dodged pirates, privateers, and war fleets in

her seventeen-day passage from Salem to Gibraltar; the _Empress of China_

in her venture to the Far East; the sealers among the icy rocks of the

Antarctic; the whalers beyond Bering's Straits; the packets of the sail as

they crossed from New York to Liverpool; and the clippers that flaunted

the Stars and Stripes off the weather beam of every ship they met on the

Seven Seas,--in short, the whole story of the American merchant marine has

been worth consideration here because it sets forth unmistakably that the

superior intrinsic efficiency of the American sailor of the sail, during

the contest that culminated with the perfection of the ship of the sail,

gave supremacy to the American flag. We can buy ships--whole fleets of

them--if we are willing to pay the price, and we can maintain them upon

the high seas in like manner; but we shall never again see the Stars

and Stripes triumphant upon the high seas until the American environment

evolves, once more, by natural process, the nautical unit as efficient

for the modern day as was our ship of the sail in the days long past.

FOOTNOTES

[1] This board was created by an Order in Council dated July 4 (nowhere

mentioned as "a beautiful coincidence"), 1660, "to receive, hear, examine

and deliberate" upon all matters concerning the colonies, and report the

facts and their conclusions to the king.

[2] _The Story of New England Whalers_ gives a satisfactory history of

the American whale fishery.

[3] Many vessels went out without cannon, expecting to capture guns from

the enemy.

[4] The following is the inventory of the cargo of the sloop _Charming

Sally_, which "cleared out from Dominica to Newfoundland," and was

eventually considered as a prize by the Continental Congress: "1300

bushels of salt; 14 hogsheads of molasses; 120 gallons of rum; 65 reams

of writing paper; 1 hogshead and 27 demijohns of claret wine; 27 bottles

of French cordials; 5 cases of oil of olives and anchovies; 4 ankers of

brandy; 150,000 pins; 24 pairs of wool cards; 10 pieces of linen and

checks; 500 pounds of shot; 1 cask of powder; 150 pounds of coffee; 4

umbrellas; 100 yards of osnaburghs; 4 beaver hats; 1 Negro man; 1 suit

of velvet; 1 suit of black cloth; 1 suit of light-colored cloth; 1 suit

of purple cloth; 2½ dozen of shirts; 2 dozen of neck cloths; 3 dozen of

handkerchiefs; 4 dozen of silk and thread stockings; 3 dozen of linen

waistcoats and breeches; 2 chintz nightgowns; several short coats; great

coat and cloak; ½ piece of cambrick; 8 yards of crimson silk; 1 dozen

pair of French laced ruffles; bedding; table linen; musket sword; pistols;

2 blunderbusses; quadrant and other instruments; small library of books."

[5] The sea letter given to Captain Green read as follows: "Most serene,

most puissant, puissant, high illustrious, noble, honorable, venerable,

wise and prudent emperors, kings, republics, princes, dukes, earls,

barons, lords, burgomasters, councellors, as also judges, officers,

justiciaries, and regents of all the good cities and places, whether

ecclesiastical or secular, who shall see these patents or hear them read:

"We the United States in Congress assembled, make known, that John Green,

captain of the ship called the Empress of China, is a citizen of the

United States of America, and that the ship which he commands belongs

to citizens of the said United States, and as we wish to see the said

John Green prosper in his lawful affairs, our prayer to all the before

mentioned and to each of them separately, where the said John Green shall

arrive with his vessel and cargo, that they may please to receive him

with goodness, and treat him in a becoming manner, permitting him upon

the usual tolls and expenses in passing and repassing, to pass, navigate

and frequent the ports, passes and territories, to the end, to transact

his business where and in what manner he shall judge proper, whereof we

shall be willingly indebted."

This letter was signed by the president and the secretary of Congress.

[6] See _James Rogers and His Descendants_, by James Swift Rogers, Boston,

1902. There is also other evidence that it was Captain Moses Rogers,

but the New York papers of the period do not give the first name of the

captain in what they say about this first passage. Captain Rogers left

the _Clermont_ on reaching Albany.

[7] To show what the packets carried, here is the invoice of the

_Dreadnought's_ first cargo: 3827 barrels of flour, 24,150 bushels of

wheat, 12,750 bushels of corn, 304 bales of cotton, 198 barrels of potash,

150 boxes of bacon, 5600 staves, 60 tons of ballast, a total dead weight

of 1559.65 tons.

The ship was 200 feet long on deck, 40.25 feet wide, 26 feet deep. With

this cargo on board she drew 21½ feet of water aft and 21 forward. Her

main yard was 79 feet long.

* * * * * *

Transcriber's note:

Inconsistent hyphenation and spelling in the original document have

been preserved.

Obvious typographical errors have been corrected.

The Story of the American Merchant Marine · 第 16 / 16 章