REPORT OF AMERICAN MERCHANT MARINE COMMISSION. 33

remote parts of the world. A geographical distinction similar in
principle is observed by most maritime nations either directly or indirectly
 in the. imposition of light dues or tonnage duties.
The proposition of the Commission further repeals the inexplicable
misapplication of the principle of reciprocity to tonnage taxes found
in sections 11 and 12 of the act of June 19, 1886. In brief, these sections
 provide that vessels shall be exempt from tonnage taxes in the
tony States on condition that in the ports from which they come no
tonnage taxes or light dues or equivalent taxes are imposed on American
 vessels. If American vessels had a reasonable share in the trade
of the world this system might be justified in theory, though in practice
the revenue requirements of most nations would not permit of its
application.
With the ocean carrying trade of the United States, however, almost
entirely in the hands of foreign shipowners, this so-called reciprocity
system is indefensible. In 1903, for example, American vessels paid
in the United States in round numbers $72,000 in tonnage duties,
while foreign vessels paid $810,000. Complete reciprocity, therefore,
under this law would have given foreign vessels the benefit of $12
exemption for each $1 exemption secured to American vessels. The
exemption in foreign ports would be in the same proportion, but the
amounts would be considerably larger.
THE MARINE-HOSPITAL SERVICE.
The bill also repeals section 15 of the act of June 26, 1884, by which
the proceeds from duties on tonnage heretofore have been devoted
to the Marine-Hospital Service. The Commission realizes the excellent
work, the progressive spirit, and the scientific methods of the Public
Health and Marine-Hospital Service. It is to be observed, however,
that the character of this Service has been materially changed by the
legislation of recent years. Its functions have been extended from
those of a purely maritime service to a national public-health service,
and it seems proper, therefore, that its expenses should hereafter be
met hy direct appropriations in the same manner as that by which the
(tovernment provides for other general services.
Furthermore, the marine hospitals are maintained for the benefit of
seamen on American yessels, and seamen on foreign vessels treated at
these institutions are charged a moderate sum. As over 90 per cent
of our tonnage taxes are paid by foreign vessels it does not seem just
that this fund should be set apart as at present for the exclusive benefit
of our own crews.

A REMISSION IN BEHALF OF BOYS.

It has been explained that the increase in tonnage taxes made in
section 8 of the proposed bill falls alike on an American or a foreign
ship that enters a port of the United States in foreign commerce.
The chief maritime power in the world, the one that has been most
successful in developing a strong naval reserve of merchant officers
and seamen, and the one great power, moreover, that resembles the
United States in dependence for naval strength on voluntary enlistments,
 has for several years followed a practiee of remitting a part of
its tonnage taxes to those of its own vessels that train boys for the
merchant service and the Navy.
8 Ren. 2049. 58-3——3