198 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

A member of a firm exporting and importing products to and
from the islands of the south Pacific expresses the opinion that we
can build up an American. merchant marine for foreign trade
through the following means:
1. Let American capital purchase ships wherever they can be bought on the
most favorable terms, either at home or in foreign markets.
2. Let the owners man these ships with the same men that have been in
charge of them previously and who have complied with the requirements of
other first-class nations in gaining certificates of competency. Allow this
privilege for at least five years.
3. Adopt, in total, the English laws and regulations that pertain to equipment
and inspection.
4. Assist American owners to obtain sufficient insurance in all of its branches
by cooperation with American underwriters. ;
5. Give American owners substantial assurance that ships under the American
 flag will have adequate protection throughout the world.
6. Let it be kept in mind that the labor unions and allied organizations are
not the ones that produce the capital for investments in ships; that if Americans
 are to be induced to invest their money in the ownership of vessels and
be held responsible for their successful operation, they must have a few of the
rights guaranteed by the Constitution of the United States.
As regards the coastwise trade, we have no objection to retaining this for
American-built ships. They cost so much more than foreign-built vessels that
they would be completely outclassed in foreign-trade competition under normal
conditions.” They would have to start with a handicap that could never be
overcome. If the coastwise trade is reserved to American-built ships, our owners
 can afford to patronize American shipyards.
An observer of American and foreign business for the past 30
years states that—

A merchant marine of the most modern type built to be suitable to carry
merchandise and passengers in time of peace, and in time of war to be available
to the Government as quickly as needed, is one of our great needs.
The Government should build such ships. Through the Department of Commerce
 it can organize companies with capital sufficient to conduct the business
 and pay fair returns to the Government for its investment. The companies
 can also create from the earnings a sinking fund to reimburse the
Government in a fixed period of time for the funds so invested. This method
would bring actual life into the export of American-made products, because
service could be established or discontinued to any country to accommodate the
export trade. Freight rates could never become prohibitive and goods could
be shipped on dependable dates.
At present we not only have to pay exorbitant rates for freight, but are also
confronted with the difficulties arising from the fact that the present steamship
 companies are controlled by the respective Governments in which the
companies have their home, because these Governments are part owners. The
shipper is now made to believe that his goods will be promptly shipped to
destination, whereas in practice it is found to be different. The many complaints
 made that Americans do not know how to pack goods for export and
that the goods therefore reach their destination in such deplorable condition
that they are either rejected or settled for at the mercy of the consignee, are
svils due to other causes and agencies. These occurrences would never take
place in American ships.
Worst of all, however, the American manufacturer, under present conditions,
by utilizing foreign ships to carry his goods, furnishes unknowingly into the
hands of his competitors in the country where the ship belongs, the weapon
with which to kill his trade.
A prominent investigator of financial conditions in South Ameriea
 is of the opinion that—
An association * * * could very readily join with similar associations
in the building up of a merchant marine of the United States, but such merchant
 marine should be wholly and entirely financed and operated without
subsidy of any character whatsoever. I would also confine the political activi-