REPORT OF AMERICAN MERCHANT MARINE COMMISSION. 4]
whelming odds in the large subsidies enjoyed by the parallel lines of
Japanese and British steamers. The least that our Government could
do to aid these American lines would be to give them the carrying of
1ts own soldiers and their supplies. Neither Great Britain nor Germany
 maintains a transport service. Both nations find it more satisfactory
 and economical to make use of their regular commercial
Steamers, and both nations thereby foster and encourage in a perfectly
legitimate way the enterprise of their shipowners and merchants.
The United States stands alone in denying this assistance to its
maritime interests.

SECRETARY ROOTS VIEW.

For some inexplicable reason, the gradual discontinuance of the
transport service of the United States, which Hon. Elihu Root noted
and commended in his annual report as Secretary of War in 1902,
Seems now to have been arrested. Mr. Root spoke of the sale of some
transports and the laying up of others, and added:
In October bids were invited from commercial lines for transportation of passengers
 and freight for the Army between San Francisco, Portland, Seattle, and Tacoma
and Manila until June 30, 1903. A number of bids have been received, but the combarative
 advantage of operating under them has not yet been worked out, and no
contract has been awarded. As rapidly as it becomes. apparent that the Government
 business can be done more economically in any part or as a whole by this
method it is the purpose of the Department to follow the same course which hag
been followed upon the Atlantic in discontinuing the use of Government transports
and to put the business in the hands of commercial lines on the basis of open
competition.
Lam satisfied that it is practicable for private shippers to do ordinary business much
cheaper than it is possible for the Government to do it under the limitations which
rest upon Government action, and that they can afford to do the business for less
than it costs the Government and still make a profit. At the same time, by follow-Ing
 this method, the Government will be aiding to build up regular commercial lines
between the Pacific coast and Manila, which is much to be desired.
. The Commission earnestly indorses this authoritative recommendation,
 and ag Congress to complete as soon as possible the discon.
tinuance of the transport service, as a measure of economy, and a sure
and acceptable encouragement to American trade and navigation on
the Pacitic Ocean. The military power of the United States will be
not the loser, but tite gainer, by an enlightened policy tending to
Increase the number of modern American steamships available for use,
and to strengthen our commerce with the Orient.
AMERICAN SHIPS FOR THE CANAL TRADE.

A law of the United States requires that only American vessels shall
be used for the shipment by sea of all supplies and materials for the
Army and Navy, unless the President shall find that the rates of freight
are excessive and unreasonable. This is in accord with the regulation
or practice of all maritime powers, who never, save in exceptional
cases, intrust their public service of this kind to foreign shipowners.
Remonstrances have been sent to the Commission hy American shipowners
 on both the Atlantic and Pacific oceans, that foreign vessels
were being used to the exclusion of American vessels for the trans
portation of materials and supplies from the United States to the Isthmian
 Canal Zone. One case In particular is cited, where a considerable
amount of lumber was given to the Kosmos Line of German steamers