DEVELOPMENT OF A MERCHANT MARINE AND COMMERCE. 237 



to equalize the cost of ship construction and operation, either directly or indirectly or by gov- 

 ernment aid; if we are to maintain successfully the great American merchant marine it must 

 become a government protected institution, and every piece of legislation such as the La 

 Follette Seaman's Act must be considered from the aspect of its desirability to be enacted, 

 how much the Government will have to pay in the way of subsidies to counteract its effects. 



A not unimportant element in the item of cost is that of handling and terminal charges — 

 port facilities ; and even in this we cannot be too careful in attempting to avoid the evil of 

 over-expansion and extravagance. Large and expensive works of construction of an elabo- 

 rate character involve high first costs, high fixed charges, both of which must in turn be 

 distributed on the terminal and handling charges. The question of proper terminals and 

 port facilities is therefore in each case and in each port a special problem of balance between 

 business and expected business, seeking the proper balance of cost and consequent distribu- 

 tion of fixed charges. It might easily be made too expensive to use the most elaborate 

 and complete terminal facilities, causing the operator to seek more primitive and less com- 

 plete facilities involving less charges. 



There is undoubtedly an opportunity in American port and terminal problems to ma- 

 terially increase the capacity by a more efficient and economical utilization of these facili- 

 ties. Such is the case regarding results in not alone more rapidly and economically load- 

 ing and unloading vessels, but in capacity of the terminal as regards number of vessels and 

 cargoes unloaded and a possible reduction on terminal charges. The great port of New 

 York undoubtedly affords a fertile field for improvements of this character. The evil and 

 expense of its lighterage system and drayage or truck transportation are well known. The 

 condition of its waterfront and congestion westward during periods of normal commercial 

 prosperity form one of the visible explanations of its constantly mounting costs of ship- 

 ment through this port. 



A glaring example of what the keen commercial competition for business expansion 

 will do is well illustrated in a recent disclosure made by Senator Jones relative to agreements 

 between various of our railroads and foreign steamship companies. To look at this disclo- 

 sure impartially simply shows that various railroad officials seeking business have sought alli- 

 ances that would bring them the most business and that, of course, would permit them to 

 expand their railroad business, although apparently at the expense of the American merchant 

 marine. It is human nature for the average business executive, who feels first his respon- 

 sibility to his own corporation, to seek for its prosperity first; although he may be and is 

 very likely at heart just as patriotic as any of us and would, all things concerned being 

 equal, prefer to make his alliances with American steamship companies. The answer to 

 such course of action is, first, to improve the American merchant marine service, so that 

 it will offer and afford everything that foreign services offer and afford, so that it can 

 offer freight rates as cheaply as foreign lines can offer them, thus removing the ele- 

 ments of temptation as far as possible. In addition to this, passing the necessary laws and 

 regulations prohibiting any such alliances and forming the proper organization that will 

 vigilantly, aggressively and tenaciously enforce these laws to guard against their evasion. 



Thus far we have spoken largely of foreign trade, exports and imports, and why it is 

 desirable that the United States should have a large and great foreign trade. We must 

 not overlook the all-important fact, however, that foreign trade is dependent to a large 

 extent on a balance between exports and imports. This condition is not alone desirable 

 but necessary. It is absolutely necessary financially and, if not absolutely necessary, very 



