68 REPORT OF AMERICAN MERCHANT MARINE COMMISSION.

bad been built in Japan, and 10 more were being built, all of which came under the
head of this act. The total tonnage of these steamers was something over 86,000
gross tong, and the total indicated horsepower over 71,000.
Aside from the stimulating influence of an act that makes it obligatory on the
Government to assume a portion of the original cost of a vessel, it, also provides for
the regular payment of subsidies or bounties to those vessels when placed in the
foreign trade. The amounts of subsidy paid each year by Japan to such vessels for
the first six years succeeding the passage of the act were as follows:
$360, 000
i,315,
2.020. ©

. $605, 000
450, 000
160, 000
The reason for the rapid decline in the amounts paid after the year 1899 is
explained in the following manner: Under the act of 1896 all Japanese steamers of
more than 1,000 tons and of a speed exceeding 10 knots receive subsidy just as long
18 they are engaged in the foreign trade, the minimum subsidy amounting to 25 sen
(about 12% cents) per ton per 1,000 miles traveled. With the increase and size of
the ship, as well as of speed, the subsidy increases up to 60 sen (30 cents), the
tonnage required to insure this highest rate being 6,000 and speed 17 knots. From
the date of the launch of the steamer up to and including her fifth year, the subsidy
is paid in full. After the fifth year it is reduced 5 per cent every year, and when
‘he steamer is 15 years old it is withdrawn altogether.
-It is stated that the encouragement thus given was found to be insufficient to
induce Japanese owners to enter into serious competition with well-established foreign
 steamship companies. This fact known, in 1899 a new departure was made,
and the Government entered into special contracts with steamship owners to give
regular service on certain definite routes. As these lines receive the special subsidy
only, the steamers that benefit under the old arrangement are fewer than was previously
 the case. Thus the special subsidies now being paid and assured steamship
lines predominate largely over those paid out on account of the old act of 1896. At
the present time the definite contracts with the Government are those in force with
the Nippon Yusen Kaisha, the Toyo Kisen Kaisha, the Osaka Shosen Kaisha, the
Daito Kisen Kaisha, H. Oie & Co., and the Hunan Steamship Company. The Nippon
 Yusen Kaisha ig, of course, the leading line, and naturally controls the largest
number of steamers and the principal routes. These routes, and the subsidies paid,
are as follows:
Yokohama to Melbourne, employing 3 steamers of 3,500 tons and above; speed, 16
knots and above. A monthly service. Subsidy, $268,000. Contract runs from April,
1901, to March, 1906.
Yokohama to Bombay, employing 3 steamers of 3,000 tons and above; 10 knots and
above. A monthly service. Subsidy, $91,000. Contract runs from April, 1901, to
March, 19086.
European line, employing 12 steamers of 6,000 tons and above; 14 knots and above.
A fortnightly service. "Subsidy, $1,364,000. Contract runs from January, 1900, to
December, 1909.
Hongkong to Seattle, employing 8 steamers of 6,000 tons and above; 15 knots and
above. A four weeks’ service. Subsidy, $333.500. Contract runs from November,
1901, to December, 1909.
Also mail routes:
1. Yokohama to Shanghai, employing 3 steamers of 2,250 tons and above; 14 knots
and above. A weekly service.
2. Kobe to North China, employing 3 steamers of 1,400 tons and above; 12 knots
and above. A weekly service, except in winter.
3. Kobe, Korea, and North China, employing 1 steamer of over 1,400 tons; speed,
over 12 knots. A four weeks’ service.
4. Kobe to Vladivostock, employing 1 steamer of over 1,400 tons and 12 knots. A
four weeks’ service.
5. Kobe to Otaru, employing 12 steamers of 1,400 tons and above; 14 knots and
above; two routes: eastern, 10 times a month; western, weekly,
6. Aomori to Mororan, employing 3 steamers of 700 tons and above; 10 knots and
above. A'daily service.
The joint subsidy for the foregoing six mail routes is $280,500. Contract runs
from October, 1900, to September, 1905.
The Toyo Kisen Kaisha rung its steamers between Hongkong and San Francisco.
[t employs 3 vessels of 6,000 tons and above, and 17 knots and above. It gives a
four weeks’ service. The subsidy is $517,000 per annum. The contract runs from
January, 1900, to December. 1909.

TIYMMNY