Rensselaer Semi-Weekly Republican, Volume 19, Number 104, Rensselaer, Jasper County, 2 September 1898 — A MARINE MONOPOLY. [ARTICLE]

A MARINE MONOPOLY.

HOW ENGLAND MAINTAINS HER SEA SUPREMACY. » No American Ship Can Obtain from the British Lords a Classification and Rating as Favorable as Those Accorded to British Vessels. In Foreigners' Hands. Marine Insurance as closely follows the carrier of goods as trade follows the flag borne by the ship. This is conclusively shown by Jme history of marine underwritlngio this country. In the early days of the republic, when our merchant marine was adequately'protected by the imposition of discriminating duties, and when, thereby, the American shipbuilding industry prospered, American marine underwriting flourished. There was little or no competition in the market for freights; therefore these were’comparatively high. At the same time protits on goods were large, and shlp-owpers could well afford to pay full rates for insurance, while shippers of goods found no fault with the high rates of underwriters who guaranteed the safe delivery of the cargo. The marine insurance companies doing business in New York City in 1858 numbered thirteen, having an aggregate capital of $20,000,000. The commerce of the country was comparatively large, and it had grown from about $200,000,000 in 1838 to $535,000,000 twenty years later. This capital wjis ample for the safe conduct of the business, and large dividends were paid by all the companies. These profitable conditions did not attract competition of foreign insurance companies, however, mainly for the reason that there had not, at that time, been much competition iu the carrying trade, though foreign carriers were gradually forcing their way into the oversea field by means of their iron steamers. The outbreak of the war of the rebellion gave the foreigners their long-, sought opportunity. American shipping was practically driven from the sea, the ocean carrying .trade was secured by Europeans, and agencies of foreign insurance companies followed the foreign flags to New York City and to other Atlantic ports. Gradually American underwriters were forced out of the business, and to-day there is but one of these marine Insurance companies in existence in New York City, and only five, and these of small capital, in other Atlantic ports. Almost the entire business of marine underwriting is now done through •agencies of foreign companies. Though the commerce of the country has enormously Increased, being nearly quadrupled in forty yeajfc, yet the capital of these foreign companies, Invested in this country, is-only about $7,000,000, this being the aggregate amount of deposits required to be made with the insurance department under the State laws. The capitalization of the parent companies is unknown, no statement of such capital being published, and, therefore, these foreign organizations pay only small taxes here for the privilege of doing business in this country. The facilities for instant cabling enable these foreign agencies to take enormous lines of insurance, distributing the lines among the various parent companies, and in this way the risks are actually underwritten abroad. It will be seen at a glance that competition by American companies, did these companies exist in sufficient number <to attempt to compete, would be almost impossible, and until conditions shall materially change there will be little incentive for American capital to engage In marine underwriting. The spectacle is presented to-day of our ocean carrying trade being almost wholly in the hands of foreigners who are receiving fully $300,000,00 annually for the transportation of our Imports and exports. Foreigners are also underwriting almost every ton of the goods carried, besides taking risks upon every ship engaged in tlie traffic. They contribute scarcely any tiling in the form of taxes for the privilege of conducting their business, and they vigorously resist every attempt which Is made to require them to bear some portion of the expense of maintaining facilities for their shipping. The remedy for tills disgraceful condition of affairs seems to be the imposition of discriminating duties against goods carried in foreign ships. If this remedy should prove effective it would tend to stimulate the growth of our American marine, and In that event insurance would most assuredly follow the carrier, successful competition with

foreign underwriters would soon become possible, and it could be made entirely successful by a system bf taxation which would adequately protect American capital employed in underwriting. First of all, however, an American merchant marine. After that, innumerable blessings and advantages will follow.—American Economist. Maintain American Policy. The real Interest of the nation is not t to change its policy, but to continue it —continue the policy that has made it great. If it is recognized as keeping the front place among the greatest nations from now on Lt will not be due to its army or its navy; it will be due to the industrial policy under which the nation has been developed and its military and naval success made possible. It is continuance, then, of this policy which will make the republic great. It will l>e greater still if it can turn from this military digression and resume its previous industrial policy. Its previous industrial policy has given us our wealth and prosperity; it has given the laborers of this country something to tight for, something to esteem; as Cart Schurz said in his recent article in a German paper correcting the misconceptions of the Germans regarding America, all Germans w T ho have made their home in this country will fight as readily for their new fatheriand as they ever would for their old fatherland. Nothing has made this possible, 1 say, but the industrial policy under which the material prosperity of the people has undergone a progress not witnessed in any other country.—Gunton’s Magazine. r

McKinley's Excellent Management. The congratulations which are pouring in on the President on account of the satisfactory termination of the war are well deserved. In the management of the war Mr. McKinley has shown excellent judgment. He has solved delicate and difficult problems with rare discretion and tact. He has displayed courage without harshness and dignity without egotism. Nobody thought of war with Spain or any other country as a possibility when Mr. McKinley was elected, yet he has met the most exacting requirements of war with ability and success. His work in the past half year has been a fine tribute to the educational value of democratic institutions. When the history of this period is written the President will stand out in the record as one of the most creditable of the world figures of the time. Most Favored Nation. For the first six months of 1898 France has increased her imports $70,000,000, while her exports show a decrease of $23,000,000, as compared with 1897. The excess of imports over exports for the same period amounts to about $125,000,000. The United States, with its intelligent system of protection. its expanding foreign trade, it# 75,000,000 of liberal buyers and consumers of home products, and Its merchandise balance of $015,000,000, is the most favored nation on earth. Far froan a Failure. The opponents of the tariff law are claiming that it is a failure as a producer of revenue. The facts contradict their claim. The Dingley law is producing $60,000,000 per year more than the Wilson law did, notwithstanding the disturbance of the war. It is producing over a million dollars a day, which in ordinary peaceful times would leave quite a large surplus with which to wipe out the debts caused by Democratic tariff tinkering and mismanagement.—Rome (N. Y.) Citizen. No Chance for Calamity Howler*. Predictions are not always verified. But in this case there is confirmatory evidence in advance. A large land credit concern, which holds more than $5,000,000 of mortgages on Western farms, reports that it has only $17,900 to foreclose this season. This latter straw Is directly indicative of the course of the breeze of prosperity. It is small wonder that popocracy, free silver and the calamity howl are at & discount on the prairies at this time.—• Pittsburg Dispatch. Larxeat Ever Known. The balance of trade in favor of the United States for the first year under the Dingley tariff Is aliout $615,000,000, die largest ever known. And you can be sure that the other countries paid the balance in gold or something just as good.—Hutchinson (Kan.) News. When Prosperity Began. The New York Times is certain that it is not the war which has given tha country its general prosperity, as it had| set iu before the war was a probability, It really set in the night of the first Tuesday In November, 1896.