Following the apparent line of least resist ance, American shipowners and builders swung from the extreme clippers of the decade before the 'Civil War to so-called medium clippers, particularly for the Cape Horn and other long voyage trades. These medium clippers were not so fast as their racing predecessors, but had a greater capacity for cargo, with more strength and seaworthiness. For a long time these large American wooden sail ships success fully competed with British iron sail ships, but were finally driven from the seas, first by in surance discriminations enforced against wooden hulls by the British Lloyd's, and then by the liberal subsidies provided for sail ships by the French government. Except for a few inadequate and short-lived mail subsidies like those to the Brazil line and the Oriental serv ice of the Pacific Mail, no national aid what ever was given to American ocean shipping from 1865 until 1891. A subsidy system similar to Great Britain's was strongly urged by the maritime and commercial States, but was regu larly defeated by the influence of European steamship interests and the opposition of the agricultural South and West in Congress.
But in 1891 both the Senate and the House passed a cautious mail subsidy measure grant ing subsidies for postal lines of steamers. This legislation, however, was so seriously crip pled by the insistence of Western lawmakers on reducing the original rates in the House of Representatives that though the measure has maintained a fast American mail line to Europe and several other lines to the West Indies and to Australasia, it has failed of any more ex tended purpose. This is the legislation which, coupled with the admission of the British-built New York and Paris to American registry, made it possible for the International Naviga tion Company to undertake in 1895-96 a weekly American mail service from New York to England and France. The Ocean Mail Act of 1891 maintains also the Ward line of American steamers from New York to Cuba and Mexico, the Red D line from New York to Venezuela and the Oceanic line from San Francisco to Australasia. Total expenditures under this act in recent fiscal years have been from $1,000,000 to $1,200,000 a year, or less than half of the amount expended for like purposes by the government of Canada, and one-fifth or one-sixth of the total mail subsidy payments to the 30 lines of British postal steamers which constitute the backbone of the British mercan tile marine.
President Roosevelt in 1904 earnestly recom mended an investigation by Congress of the causes of the decline of the American merchant marine, with a view to recommending remedial legislation. A Merchant Marine Commission of five senators and five representatives, of which Senator J. H. Gallinger of New Hamp
shire was chairman, was authorized by Con gress and published its report in 1905, urging national encouragement to regular steamship services to the West Indies, South America, South Africa, Australasia and the Orient, and the granting of tonnage bounties to cargo ves sels. A bill carrying these provisions passed the Senate, but the bounty to cargo ships was eliminated in the House, and every subsequent effort to enact even legislation for mail lines was defeated in the House, though by the slenderest of majorities. Again, as before the Civil War, a large part of the agricultural South and West resisted any and every form of na tional aid to the ocean shipping industry, and again this opposition was reinforced by the formidable influence of the European steamship organizations which were now monopolizing nine-tenths of the ocean carrying trade of the United States.
A Trial of ((Free Ships policy of °free ships," or the free admission of foreign-built vessels to American registry for at least the overseas trade, had found some advocacy for many years in the press and in Congress, and on 24 Aug. 1912, in connection with the Panama Canal Act, the Senate and House changed the traditional policy of the nation by offering free registry for the overseas trade to foreign-built vessels of American ownership not more than five years old, and capable of carrying dry and perishable cargoes. The new expedient abso lutely failed. Up to the outbreak of the war in Europe on 1 Aug. 1914, not one foreign-built ship had sought and 'secured register under this legislation. The reason assigned was the higher cost of operation that would have to be assumed under American laws and regulations. About 1,000,000 tons of ocean shipping, it is estimated, were owned and controlled in 1912 by American capital, but navigated under for eign flags to take advantage of foreign mail subsidies or of the lower range of foreign ship board wages.
But when the European War broke out, many of the American owners of this foreign tonnage, particularly of that part of it under British or German colors, sought the protection of the flag of the United States in order to escape capture by the enemy. Therefore, Con gress, on 18 Aug. 1914, passed as an emergency measure i an act amending the previous act, broadening its provisions and authorizing the President to suspend the requirement of law that the officers of these foreign-built ships should be American citizens. These foreign built ships admitted to American registry were further exempted from compliance with our inspection and measurement laws and regula tions.