62 REPORT OF AMERICAN MERCHANT MARINE COMMISSION.

one iota the interest of the American shipbuilders, as I have not been able to discover
 in the records of the last two or three years that any appreciable amount of
tonnage has been built in this country for the ofishore trade.
At vonur service, I am, yours, truly,

Joax A. DoNALD.

21 Stare StreET, NEW YORK, October 27, 1904.
Mr. Wixtaror L. Marvy,
Secretary Merchant Marine Commission, Washington, D. C.
Dear Sir: We are in receipt of your letter of October 25, and you doubtless will
appreciate how impossible it is for us to state definitely to-day what our action would
be on certain possible future contingencies, without knowing the conditions that the
future may reveal. On general principles, however, we might state for the information
 of the Commission, and waiving for the time all other considerations except
those of a purely commercial advantage, in reply to question—
1. That there would be no incentive, from a business point of view, to transfer
foreign-built ships to American registry, if they were to he confined exclusively to
the foreign trade, but to remain without subsidy, differential duty, or any other Government
 encouragement, on account of the greater cost of onerating vessels under the
American flag than under some foreign flag.
2. The advisability of transferring foreign-huilt ships to American registry, if they
were to be adinitted to all or part of any subsidy or differential duty granted by our
Government yet confined to foreign trade, would depend entirely upon the amount
of such remuneration that the steamers would receive under such subsidy or differential
 duty. If it did not fully compensate for the extra cost of operation there
would be no advantage to be gained by making the change.
3. We could not say at the present time whether we would want to transfer our
foreign-built ships to American registry without subsidy, but with the privilege of
entering the coastwise trade.
4. The answer to No. 1 practically covers this question also. There would be
nothing gained by transferring foreign-built ships to American registry and building
an equivalent tonnage in this country unless both classes of vessels participate in the
subsidy or differential duty.
5. In view of the possibility that there might not be a sufficient number of experienced
 officers and engineers to man all American and foreign-built ships operating
under American registry, we would deem it advisable that the privilege should be
granted of employing alien officers and engineers, at least for a term of years after
the passage of any legislation granting American registry to foreign-huilt vessels.
We trust that the above fully answers your desires, and remain.
Yours, truly,

T. Hoan &amp; Song.

Mr. WintHROP L. MARVIN,
Secretary Merchant Marine Commission, Washington, I. C.
My Dear Mr. Marvin: [am in receipt of your letter of the Ist instant, and note
your request for a formal reply from me to the various questions vou have submitted,
also to others, for the information of the Commission. You will find below the ques.
tions and my answers to each.
1. Whether you would, if so authorized by Congress, transfer your foreign-built
ships to American registry to engage exclusively in the foreign trade, but to remain
without subsidy, differential duty, or any other Government encouragement?
Anwser. No.
2. Whether you would transfer your foreign-huilt steamships to American registry,
if they were admitted to all or part of any subsidy or differential duty granted ly
onr Government, but were still confined to the foreien trade?
Answer. Yes.
3. Whether you would transfer your foreign-huilt steamships to American registry
if no subsidy ar differential duty were granted, but if the ships were allowed to enter
the coastwise trade on the same terms as other American vessels?
Answer Nao

Barrisorg, Mb., November 4. 1904.