Under the act of 1891 the United States pays for carrying the mails on a mileage basis as follows; For first-class steamers. $4 per mile: second-class steamers, $2 per mile: third-class steamers, $1 per mile; fourth-class steamers, 66 2-3 cents per mile. Besides these contract prices the Post Office Department pays American vessels carrying mail $1.60 a pound for first class matter and S cents a pound for other mat ter. Foreign vessels carrying United States mails are paid the international postal rates (44 cents and 4Y2 cents per pound respectively). It will he seen that these payments constitute a very liberal subsidy to the mail steamers. In 1898 Senator Hanna introduced the first general subsidy measure designed to introduce a system of direct navigation bounties. After numerous amendments the measure passed the United States Senate, March 17. 1902. The bill as passed consisted of four titles: (1) ocean Mail steamers. which provided for mail payments on the basis of speed and tonnage of vessels, and not for service. Ocean mail steamers were divided into seven classes, according to speed and ton nage. Compensation for 100 miles sailed was: Tor the first class, 2.7 cents per gross ton; second
class, 2.5 cents; third class. 2.3 cents; fourth class. 2.1 cents; fifth class, 1.9 cents; sixth class, 1.7 cents: and seventh class. 1.5 cents. (2) Gen eral Subsidy. This section was intended to give a bounty of 1 cent per gross ton for every 100 nautical miles sailed to all vessels not receiving mail subsidy. This was intended as an offset to the alleged greater cost of construction and nayi gation of American ships. (3) Dcep-&m Fish eries. Under this title it was proposed to grant $2 per gross ton annually as a bounty on Amer ican vessels engaged at least three months in the deep-sea fisheries. and $1 per month to every American sailor employed on such vessel. The purpose of this part of the bill was to encourage an industry which would, it was alleged. serve as a training school for the United States Navy. The fourth title contained only general provi sions of no special importance. The measure Caine before the House in the last session of the Fifty-seventh Congress, but was reported ad versely by the committee having it in charge.