REPORT OF AMERICAN MERCHANT MARINE COMMISSION. 61

assistance to such ships, we could not afford to transfer any of our foreign-built ships
to American register, as the increased cost of operating steamers under the American
flag, compared with the steamers under foreign flags in the same trade, would be too
great to warrant the transfer. . .
2. If foreign-built steamers were admitted to American register and were granted
sufficient governmental assistance (either by subsidy or otherwise) to offset the
Increased cost of operating under the American flag as compared with the cost under
3 foreign flag, we would doubtless take advantage of this act and transfer some of
Jur steamers now under foreign register to American register. .
3. If no subsidy or other assistance were granted by Congress to foreign-built ships
‘ransferred to American register, but such steamers were permitted to enter the coastwise
 trade on the same terms as other American vessels, there would be no inducement
 to make the transfer, as steamers constructed for the foreign trade are not
generally suitable for coastwise trade. Co . .
4. If Congress should pass an act providing for the admission to American register
of foreign-built ships under an agreement on the part of the shipowner to build an
equal amount of tonnage in this country, we could not take advantage of this act
unless, in addition, governmental assistance was provided sufficient to offset the
Increased cost of building and operating steamers under American register.
5. If foreign-built ships were admitted to American register we would not care for
the privilege of employing alien officers and to be exempted from the food schedule
required by United States laws, provided the assistance offered by the Government
18 an offset to increased expenses were sufficient to cover the increased cost of wages
and provigions of the American crew. } }
. We have endeavored to answer your questions, but if there is any further informa-‘lon
 that you require, we will be pleased to have you communicate with us.
Yours, truly,

P. A. S. FRANKLIN. Vice-President.

Dowarp SteamsaIP CoMPANY (INCORPORATED),
18 Broadway, New York, October 29, 1904.

WintkRoP L. Marvin, Esq., -
Secretary Merchant Marine Commission, Washington, D. C.
Drar Sir: I beg to acknowledge receipt of your letter of October 25, and beg to
em for the delay in not answering same sooner. In reply to your letter, I have
tonsidered the five quéstions which you ask, and in answer would say—
L. I beg to state on my own behalf as official president of this company, without
onsulting my directors, that I would not feel inclined to transfer our foreign-built
ships to American registry without some inducement for doing so.
2. 1 think, on the conditions indicated in your question, that we would be willing
i Santer our foreign-built ships to American registry. to be confined to the foreign
rade,
3. I believe we would not be willing to transfer our foreign-built ships to Amerian
 registry in order to participate in the benefits of the coasting trade, as we believe
that if a general transfer of other firms’ property was put in that trade it would be as
much depressed as the foreign trade for American ships.
4. I am not prepared to state that we would transfer our foreign-built ships to the
American flag for foreign trade alone if we were required to build an equivalent tonnage
 in this country.
5. I am not prepared to state that we would desire to have the privilege of
employing alien officers for our foreign-built ships if they areadmitted to American
registry.
I should like to be permitted to further add, however, that I am in favor of having
foreign-built ships bought and purchased by American citizens without seeking any
Government assistance whatever, as I am convinced that the nucleus for the shipowning
 business could be started in this country in this manner alone, and that by
reason of ultimate repairs and renewals American shipowners will be able to build
ships as cheaply as they could be built in foreign countries, and 1 would be further
in favor of citizens of foreign countries being licensed to navigate those ships under
the laws of this country.
I should be very pleased indeed to appear before the Commission and explain my
views on thismatter. I am in favor of protecting the coasting trade just as it remains
at present on behalf of American shipping industry. So far as I can see at present
the permission for American citizens to own foreign-built tonnage would not affect