1 62 The Tonnage of Ships. 



because harbours are called upon to accommodate the outsides 

 of vessels, not a limited portion of their internal capacity as 

 paid for at present ; and displacement bears a direct proportion 

 to the outsides of all vessels. 



As regards the second point, viz : — That taxation should be 

 as nearly as possible in proportion to the relative earning power 

 of various ships, I think we have in displacement the most 

 generally applicable basis for comparing all classes of vessels. 



The third point I consider essential in any new departure is, 

 that there should be no serious disturbance of the present nett 

 tonnage of such ships as are now fairly rated. This is a more 

 difficult point to deal with, but still I think displacement as a 

 basis offers a fair means of attaining this end. 



In proposing, for taxation, displacement instead of internal 

 capacity as at present, we are changing the basis of comparison, 

 taking weight instead of measurement ; hence we must have 

 a new standard. I propose to take the average weight-carrying 

 vessel, determine what percentage of her displacement is taxed 

 now, and adopt that as a fair basis for all vessels. 



The percentage of displacement I propose to vary for steamers 

 and sailing vessels, increasing this percentage as the size of the 

 vessel increases. 



From working out a number of examples, I have come to the 

 conclusion that for steamers with a displacement of 500 tons, 20 

 per cent, of this displacement would be a fair nett register 

 tonnage ; for 1,000 tons 21 per cent.; and for each additional 

 500 tons I would add i per cent. ; that is to say, 1,500 tons 

 should be 22 per cent., 2,000 tons 23 per cent., and so on in 

 proportion, so that for 5,000 tons we would have 29 per cent., 

 and for 10,000 tons 38 per cent. 



In the case of sailing vessels, I propose to increase the per- 

 centage taken for steamers by 10 per cent. ; that is to say, take 

 30 per cent, for 500 tons displacement, 31 per cent, for 1,000 

 tons, and so on. 



With regard to passenger and cattle steamers, I think it 

 would be found that the same percentage as that applied to 

 cargo steamers would give very fair results, 



