28 REPORT OF AMERICAN MERCHANT MARINE COMMISSION.

in which he recommended the creation of this Commission, “The
establishment of new lines of cargo ships to South America, to Asia,
and elsewhere, would be much in the interest of our commercial expansion.”
 Two new contract lines of mail and cargo steamers are therefore
 proposed in the accompanying bill, not only to Japan and China,
but to the Philippines. These are very long routes, and in the Pacific
coal is costly. It has thus been necessary to set the trans-Pacific subventions
 at a figure that may seem high, but that is not high considering
 the expense and the importance of the service.
Indeed, the Commission must say that it has not yet received any
intimations that the offered subventions would secure a trans-Pacific
service on either route, although there is satisfactory proof that the
Albi and Gulf subventions will attract proposals from responsible
bidders.
The need of regular mail and commercial service on the third Pacific
route, from the western coast to Mexico, Central America, and the
Isthmus of Panama, is unmistakable. No like subvention is offered
on the Atlantic side, because the Panama Railroad Company already
operates an American steam line under domestic postal contract from
New York to Colon, and this has passed with the canal property into
the possession of the United States (Government.
NEARLY ALL NEW ROUTES.

As a rule, the ten new ocean mail routes specified in the proposed
bill must be created from the beginning—not only the lines, but the
ships themselves. There is not one American steamer now running to
Brazil, not one to Argentina, not one td South Africa. On the four
Gulf routes but one American steamer is now found—on the short
line to Guba. In the Pacific Ocean the situation is somewhat different.
A service from San Francisco to China, Japan, and the Philippines is
now maintained by five American steamers of the Pacific Mail and
three British steamers of the Occidental and Oriental Company. If
the Pacific Mail were to seek the proposed contract, the three British
vessels would have to be displaced by new ships of American construction.
 There is not now, therefore, an ‘‘ existing line” on this
San Francisco route, as the proposed bill contemplates such a service.
Oust of the ports of Puget Sound only two American steamers of the
liner type now run to the Orient and the Philippines. Four other
ships of at least equal size and speed would have to be secured to provide
 a contract service. On this northern route also there is no
““ existing line,” such as would be required by the proposed subvention.
A COMPARISON OF RATES.

As to the maximum compensation offered, of $420,000 per annum,
for six American steamers on this northern route, it must be compared
with the $291,000 given to three steamers of the Competing British
line out of Vancouver—smaller ships, though fast. and of less commercial
 value than the large Americans.
This subvention of $420,000 for six American steamers is to be compared
 also with the $330,000 given to three steamers of the exactly
parallel Japanese line from Puget Sound to the Orient.
As to the other trans-Pacific subvention of $600,000 for seven or
eicht American steamers. it is comparable with $600,000 received by