RUSSIA
In Russia steamship lines were early subsidized with mileage bounties,
besides receiving postal subventions; and later the Government adopted
the policy of returning the Suez Canal tolls to the subsidized lines.
The mileage subsidies are direct bounties avowedly for the encouragement
of Russian navigation, and are very large.[EQ]
In 1898 a Government commission, appointed to consider and report upon
the state of the empire's mercantile marine, declared that Russia was
losing a vast sum annually through the lack of a sufficient commercial
fleet of her own, and yet no progress seemed to be making toward
increasing her tonnage. To remedy this unsatisfactory condition the
commission suggested the removal of the duty on ships built abroad for
Russia, and the free admission of all material necessary for ship
construction.[ER]
Favoring laws followed. By a measure of July that year (1898) ships
bought abroad, if destined for the foreign sea-borne trade, were
exempted for a period of ten years from the heavy duties levied on such
vessels.[EQ] The next year (1899) the coasting trade, reserved
exclusively for Russian ships, was extended to include navigation
between any two Russian ports in any seas; and, further to restrict this
trade to subjects of the empire, it was enacted that ships engaged in it
must be manned exclusively by Russian officers and seamen.[EQ]
At this period Russia's shipping industry, outside the Government works
for the construction of battle-ships, was of comparatively little
consequence. In the few extensive ship-yards river steamers, tugs, and
other small craft, built from Russian materials and by Russian workmen,
were chiefly turned out. The materials could be bought cheaper abroad,
but Russian labor was cheaper. According to the United States consul at
St. Petersburg, the wages of common workmen were then from fifty-one to
sixty-four cents a day, while skilled workmen were receiving but
seventy-seven cents to one dollar a day.[ES]
In the decade 1890-1901 the amount of subsidies expended directly to
encourage shipping increased rapidly, and the tonnage increased in
extent and importance. In 1890-91 the total tonnage stood at 427,335
tons of which 156,070 were steam and 271,265 sailing ships. In 1902-03 a
total of 800,334 tons was reached, of which 556,102 were steam and
244,232 sailing ships.[ET]
In 1902 the granting of bounties in the form of loans to ship-owners was
proposed, with the object of inducing them to buy Russian ships built of
Russian materials instead of foreign product. The scheme contemplated a
mortgage on the finished ship at fifty per cent of the actual cost,
without interest, to cover a period of twenty years, the loans to be in
equal yearly payments. The amount of the bounty was to depend upon the
difference between the cost of home-built and foreign-built ships. The
loans were to be made only on first-class sea-going steamers. The plans
and specifications were to be approved by the minister of finance before
building; and steamers of over one thousand tons register must show an
average speed of not less than ten knots on a six hours' trial; those
under one thousand tons, of not less than eight knots. In addition to
the loans the Government was to bear part of the expense of insurance.
To facilitate the export of Russian goods in Russian-built ships, a
rebate was allowed of half the expense of Russian coal used in steamers
carrying less than three-fourths of a full cargo on export, and one-half
cargo on import. It was estimated that this scheme for fostering
domestic shipbuilding would entail smaller drafts on the national
treasury than would the granting of direct construction and navigation
premiums.[EU]
Progress was checked appreciably by the war with Japan (1904-05). But
the year after, the empire was active again in advancing her interests
in the East, by systematically granting subsidies to steamship lines to
various Asiatic points.[EV] By 1909 the tonnage had been brought to a
total of 700,959 tons, approaching that of the year before the war. Of
this total 443,243 was steam tonnage. The greater part of the steam
fleet was foreign built, only 167 of the total, 898 steamers, being of
Russian product. The largest number were built in England (341). Others
were obtained from various European yards. More than ninety per cent
were of iron and steel. Of the sailing-ships, ninety per cent were home
product.[EW] In 1910 the total tonnage stood at 887,325 tons.[EX]
The mileage subsidies in 1910 were going principally to eleven steamship
companies; the postal subventions mainly to four. Those receiving the
mileage subsidies carry the mails and Government passengers free. The
largest mileage subsidy goes to the Black Sea Navigation Company, the
oldest and most important of the subsidized lines (founded in 1856, with
Government aid).[EY] In addition to the subsidy the Government pays back
the Suez Canal tolls. The Russian Volunteer Fleet stands second on the
list of subsidy receivers. This is practically a Government affair. It
was created in the war-time of 1877-78, by private subscription, as an
auxiliary war fleet; and was reorganized for general service in 1892.
The members of the board of managers are State nominees, and the
officers and crews are regarded as employees of the crown.[EZ] The
subsidy is fixed at six hundred thousand rubles ($309,999) a year; and
the refunded Suez Canal tolls amount to another six hundred thousand
rubles.[FA]
The mileage subsidies, given directly to foster shipping, increased
rapidly from year to year after 1890, while the postal subventions, for
mail carriage chiefly, remained practically constant.[FB]
FOOTNOTES:
[Footnote EQ: Meeker.]
[Footnote ER: U.S. Consul Smith, Moscow, in Con. Rept., no. 216, p. 149,
Sept., 1898.]
[Footnote ES: U.S. Con. Gen. R.T. Greener, St. Petersburg, in U.S. Con.
Rept., no. 236, p. 91, May, 1900.]
[Footnote ET: Report of The Merchant Marine Commission (U.S.), 1905,
vol. II, p. 947.]
[Footnote EU: U.S. Commercial Agent R.T. Greener, Vladivostock, in U.S.
Con. Repts., no. 265, p. 218, October, 1902.]
[Footnote EV: Same, no. 313, p. 140, October, 1906.]
[Footnote EW: Con. Gen. John H. Snodgrass, Moscow, in U.S. Con. Repts.,
no. 354, pp. 32-33, March, 1910.]
[Footnote EX: Lloyd's Register, 1910-11.]
[Footnote EY: Con. Gen. Snodgrass, Con. Repts., no. 102, Oct., 1910.]
[Footnote EZ: Parl. papers: Report of com. of enquiry into Steamship
Subsidies, 1901.]
[Footnote FA: List given in Rept. of Mer. Marine Com., with totals paid
in 1902-03, vol. 2, p. 946.]
[Footnote FB: Mecker.]