bounties, and 89,250,000 francs for navigation bounties, the average annual payment during the twelve-year period amounting to more than $2,000,000. The results of the law of 1881 were, however, unsatisfactory, and the law of 1893 was enacted for the purpose of broadening the scope of Government aid to shipping.

One important feature of the law of 1893 was the heavy bounty granted to sailing vessels as contrasted with steamers. The effect of this was to cause sailing vessels to be built much more rapidly than steamers. The purpose of the discrimination in favor of the sailing vessel was to enable the sailing vessels to compete successfully with the steamers. The result of the law was unfortunate, because an increase in steamers was more to be desired than an increase in sail tonnage. To overcome this and other defects, and to broaden the scope of the law, the Act of 1902, the one now in force, was passed, the main provisions of which were as follows:

(1) Foreign-built ships were granted a shipping bounty called a compensation d'armament, which was practically a naval subvention. Foreign-built seagoing steamers of 100 tons or more gross register, admitted to French registry when not more than seven years old, were entitled to receive a shipping bounty as follows until the vessel reaches fifteen years of age: For each day the steamer is in commission, up to a maximum of 300 days per year, 5 centimes per day for each ton up to 2,000 tons; a vessel of 3,000 tons receives 5 centimes per day on the first 2,000 tons, and 4 centimes per day on the remaining 1,000 tons; a vessel of 4,000 tons receives 5 centimes per day per ton on 2,000 tons, 4 centimes per day on 1,000 tons, and 3 centimes per day on 1,000 tons; the rate on all tonnage above 4,000 tons is 2 centimes per day per ton.

(2) The navigation bounty granted to French-built

vessels of more than 100 tons gross and less than 15 years old, engaged in the foreign trade (navigation au long cours),1 1.70 francs per ton per annum, both for steamers and sailing vessels. The annual rate of decrease in the bounty depended upon the size of the ship, the materials of construction, and upon whether it was a steamer or sailing vessel.

(3) Vessels engaged in the international coasting trade (cabotage international) receive two thirds of the shipping bounty or navigation bounty.

(4) French-built vessels have the right to choose for each voyage whether to accept the shipping bounty or the navigation bounty.

(5) The bounties are granted upon a maximum tonnage of 500,000 gross tons of steamers, and 100,000 tons gross of sailing vessels, in addition to the tonnage existing at the time of the passage of the law. Of this additional 500,000 tons of steamers, not more than two fifths shall be foreign-built.

(6) In order for sailing vessels to receive the benefit of the law, they are obliged to have cargoes equal to at least two thirds of their net tonnage during at least two fifths of the distance of the length of their voyage.

(7) Five per cent of the bounties is to be retained by the Government for distribution among the crews, and six per cent of the bounties is to be paid as a contribution to the support of the marine hospital.

1“Navigation au long cours, referred to in the various subsidy acts of France, includes voyages beyond the following limits: 30° north latitude, 72° north latitude, 15° west of Paris meridian, and 44° east of Paris meridian-that is, beyond ports of the Mediterranean, North Africa, and Europe below the arctic circle. Cabotage international includes voyages within the above limits, between French ports, including those of Algeria, and foreign ports; also between foreign ports. Cabotage français includes the ports of Algeria, and recently those of Madagascar." See Meeker, "History of Shipping Subsidies." 1902.

(8) The construction bounties remained the same as under the law of 1893, referred to in a previous chapter.

The law of 1902 is much more complex than previous statutes have been, and will call for an additional expenditure on the part of the Government.

The French Government is now contributing about $4,000,000 annually as construction, equipment, and navigation bounties. In addition to this, she pays an even larger sum to a limited number of companies for carrying the mails. The postal subventions amount to over $5,000,000, and although there are numerous contracts most of the services under the contracts are performed by two companies: the Messageries Maritimes, to which $2,406,568 are now paid annually, and the Compagnie Générale Transatlantique, the annual subventions to which amount to $1,289,240. The more important of these subventions are paid not only for the carrying of the mails, but to secure a higher speed and a more frequent service than the steamship companies would otherwise provide.

A good example of the purpose of the French postal subvention is afforded by the contract with the Compagnie Générale Transatlantique for the mail service between Havre and New York. The present contract was made in 1898, and became effective in 1901, to extend over a period of ten years. The company agrees to construct in French shipyards 3, and ultimately 4, 22-knot steamers for this service. It was also agreed by the company that if these steamers should, in 1905, prove to have a speed ten per cent less than the speed of competing lines, the company would, before 1908, build another steamer equal in speed and design to any competitor. Under the contract of 1898, the speed of the steamers for carrying the mails between Havre and New York was to average 17 knots, April 1, 1900; 171⁄2 knots, July 1, 1900; and 18

knots, April 1, 1903; upon putting the fourth steamer in service the average speed was to be 19 knots. The contract stipulates that if any vessel exceeds the annual average speed it shall be entitled to a speed subsidy of 25 francs per gross ton for every knot of excess speed. If the average speed is not attained, a penalty of 25 francs for each knot under the required speed was to be exacted. The payments under the contracts are to be 500,000 francs per year, with a maximum additional speed bounty of 1,680,000 francs during the ten years.

The postal subventions, together with the other large bounties granted by France to her shipbuilding and ocean navigation interests, exceed in liberality the payments made by any other country for similar purposes. The small results accomplished by this generous policy of Government aid indicate the disadvantageous conditions under which shipbuilding and the maritime industries of France are carried on in competition with her great rivals, the United Kingdom and Germany.

The foregoing detailed statement of the present bounties and postal subventions granted by the French Government in aid of shipbuilding and shipping has been presented because the French system of Government aid is more comprehensive than that of other European countries, and because the French bounty system has influenced the policy of Japan, and has attracted the favorable attention of the advocates of Government aid to American shipbuilding and shipping.

The Government aid to shipping given by the United Kingdom consists of appropriations for maintaining a force of naval reserves, of admiralty subventions paid to the owners of certain vessels, and of mail subsidies.

(1) In 1904-5 the British Government appropriated £319,954 (over $1,500,000) as "pay, allowances, and contingent expenses " of 33,505 officers and seamen serving

in merchant and fishing vessels; £70,795 ($350,000) as annual retainers, drill money, and lodging allowances to 14,609 men in the Royal Fleet Reserve-men who drill seven days a year in the fleet; and £19,000 to the 6,582 Royal Naval Volunteers, who receive per diem and capitation allowances. The appropriations of $2,000,000 annually, while intended primarily to provide a supply of seamen upon whom the navy may draw to obtain the crews to man the war vessels, are of much assistance to the merchant marine. The naval retainers make sea life a more attractive calling, and enable vessel owners to secure seamen more readily and probably at less expense.

(2) The admiralty subventions paid in 1904-5 applied to 18 fast steamers, and amounted to $360,000. In return for subventions paid during past years there are 30 additional merchant steamers held at the disposition of the Admiralty without further subsidy. These 48 merchant vessels had a gross register tonnage of 375,695 tons. The admiralty subventions granted from 1888 to 1903 included 35 vessels, whose owners received $3,500,000 for maintaining them and certain other ships in a condition such that the Government could readily convert them into auxiliary naval cruisers.

In 1903 the British Government made a special contract with the Cunard Company, whereby the Government, in return for a subvention of £150,000 ($729,000) a year for ten years, and for other assistance, acquired the right to purchase or lease any vessel owned by the company, and to supervise the plans of all new vessels with a speed of 17 knots or more which the company may construct. The company agreed to build, and is now building, two steamers that are to have a speed of 24 to 25 knots an hour. These steamers will cost about £1,300,000 each, and the Government is loaning the Company £2,600,000 ($12,660,000) at 23 per cent. The sub