OCEAN MAIL SERVICE.

1%

The amount paid during the last fiscal year for carrying the mail in American
steamships under the provisions of the act of March 3, 1891, was $1,127,245.72.
The difficulty in securing contract ocean mail gervice under the provisions of that
act is experienced in connection with the longer and more expensive routes. If such
service is to be secured, more liberal remuneration must be provided. It is highly
desirable that our mail should be carried in American vessels and that the money
paid by the Government for its transportation should go to American citizens, thus
assisting in the development of a national merchant marine that can serve the double
purpose of fostering the foreign trade of the country and providing an auxiliary naval
orce.
The passage of an act to authorize the Postmaster-General to pay for ocean mail
service in vessels of the second class on routes to South America, the Philippines,
Japan, China, and Australasia, 4,000 miles or more in length, outward voyage, at a
rate per mile not exceeding the rate applicable to vessels of the first class as provided
in the act of March 3, 1891, should enable the department to secure contract service
to the ports of these countries. Advertisements could be issued as follows with
reasonable prospects of securing proposals:
(1) New York to Rio de Janeiro, about 6,000 miles, once in twenty-eight days, 13
times a year.
(2) New York to Buenos Aires, calling at Montevideo, about 8,000 miles, once in
twenty-eight days, 13 times a year,
(3) New Orleans to Valparaiso via Colon, Panama, and ports of Ecuador, Peru, and
Chile, about 4,000 miles, once in twenty-eight days, 13 times a year.
(4) San Francisco or Seattle to Hongkong, calling at Honolulu, Yokohama, and
Manila, about 8,000 miles, once in fourteen Si 26 times a year.
(5) San Francisco to Sydney, calling at Honolulu, Pago Pago, and Auckland, 8,330
miles, once in twenty-eight days, 13 times a year; trips on this route to alternate with
sailings from Vancouver for Australia, thus giving fortnightly fast service to Australia.
The total cost, provided service were secured on all these routes, would be about
$2,201,000 a year, which is not out of proportion to the resulting advantages to the
nation, especially when it is considered that the estimated profit from the foreign mail
service (not including the cost of handling between the United States exchange offices
and offices of mailing and delivery in this country) is in excess of the combined cost
of the suggested service and the service now in effect under the provisions of the act
of March 3, 1891. Itshould be borne in mind that such a provision would not authorize
additional cost for any service now performed under existing contracts.
It is strongly recommended that favorable consideration be given legislation for
adequate mail pay to American steamships on routes of this character.

APPENDIX C.

OPINIONS OF SECRETARIES OF COMMERCE AND LABOR.
Secretary Cortelyou, in his report for 1903, said:
For years the condition of our shipping in foreign trade has been a matter of concern
to public-spirited Americans. It is virtually the only form of commercial and industrial
 activity in which the country has not recently shown creditable growth. Asan
industry it holds exceptional relations to Government. From the nature of things,
it has been exposed in an unusual degree to foreign competition, These and other
considerations make it a fitting subject for our highest statesmanship. Strong appeals
in its behalf by our Presidents from the time of General Grant and earnest efforts more
recently in Congress have so far brought meager results.
Congress has made it the duty of the Department of Commerce and Labor to foster,
promote, and develop our shipping interests. Commerce and labor, howevey are
not the only interests concerned in the improvement of our merchant shipping.
Recent legislation and administration have aimed to render more effective the militia
of the States as an important factor in the national defense. In our past wars the
men and ships of the merchant marine were the reserves that put our navy on a war
footing, and under like circumstances they must perform the same service. Government
 aid to the merchant marine, in its naval features, should conform closely to
our general naval policy. The position among nations now occupied by the United
S. Ren. 354, 61-2—2