The year 1913 opened, as in
years past, finding me a director of the Seaboard National Bank,
Merchants Exchange, Chamber of Commerce, San Francisco Theological
Seminary, Young Men's Christian Association and the San Francisco Port
Society, and Chairman of the Foreign Trade Committee of the Chamber of
Commerce.
In January of this year,
I had an interesting experience. On the evening of the 26th, we sailed
from San Pedro on the steamer "Mackinaw," which was en route from Panama
to San Francisco with a general cargo. There was a dense fog when we
dropped the pilot in the outer harbor, and the captain took over the
command. Through a misunderstanding of orders, the wrong course was
steered and the vessel struck on the breakwater outside the harbor. The
wells were sounded as soon as possible, and a report of "Eight feet of
water in No. 2 hold" was made.
I remarked to the
captain, "Eight feet of water in ten minutes! You will see the ship at
the bottom in about ten minutes more, so get all hands into the boats,"
which was done without confusion. I stood at the gangway assisting each
man who came from below into the darkness, blinded by the bright lights
he had left. Almost every man asked me to go first, but I saw them ail
safe in the boats before leaving the ship. Strange to say, the steamer
did not appear to be going down, so soundings were again taken, and it
was found that the water was not increasing. We called the men back on
board, and, with the assistance of a tug that happened along, we got her
off and up to San Pedro wharf, where we started to take the valuable
cargo out of her. The mystery of her not immediately sinking was learned
when we got the cargo out. No. 2 hold contained kegs of nails at the
place where the hole had been made. This hole was large enough for a man
to crawl through when she was on the dry dock. We discovered that there
was a bed of kelp where she went ashore, and that some of it had been
sucked into the hole and against the smashed kegs, which made it almost
water tight. Probably there never has been a similar case on record, and
this saved the ship and cargo.
ADDRESS AT FOREIGN TRADE
BANQUET, SAN FRANCISO, 1913
Japan—
There is nothing small
about the committee when they assign to me the duty of telling you of
the commerce of Japan, China, and the Philippines and Malay States. Bear
in mind this takes in more than one-quarter of the human race.
Primarily, our trade with Japan was manufactured goods, but since their
late war they have taken a leaf out of our book and adopted a high
protective tariff. This becomes necessary for two reasons:
First, on account of the
tremendous war debt which necessitates heavy taxation.
Second, they wanted Japan
to become a great manufacturing country. In this they have succeeded
Now, the great bulk of
our exports is raw material, but we still continue to buy from them on
an increasing scale, so that the balance of trade is very much against
us.
Last year San Francisco
bought from them.....$25,884,698
They purchased from
us............ ........ 18,182,316
Leaving a balance of
trade against us of.....$ 7.702.382
Then of recent years our
exports to them have completely changed from manufactured articles to
raw material, but the general trade of Japan with the world has
increased by leaps and bounds.
They have paid particular
attention to their merchant marine by assistance in subsidies and
otherwise, so now they are carting their products to every part of the
world, and if we had any American ships in the foreign trade they would
be formidable competitors; but seeing we have none, and not likely to
have any, we are not affected.
THE HONORABLE LI YUAN HUNG Became President of China June 7, 1916;
Resigned from Office August, 1917
China—
The formation of a
republic like our own, controlled by men educated in this country,
having to a very great degree our manners and customs, gives us a
prestige and advantage that no others have.
They have all the natural
resources which go to make any nation truly great. In minerals, German
scientists who were sent to investigate say that they have more coal
than all the rest of the world put together. I cannot give you a better
idea of its undeveloped state than to say that they imported from Japan
last year, one and a half million tons of coal. Enough iron ore is in
sight to assure an unlimited supply for centuries.
In agriculture the
richness and productiveness of the soil can best be told by the fact
that they have produced enough to feed five hundred million of people.
Now that a market is opened, and, since they have the means of
transportation, they are producing what sells the best, so a great many
of the products of the soil, which were unknown before, will find their
way to foreign countries. I have only time to name a few of those.
Soya Beans-—The
exportation two years ago was so great that fifty-two large tramp
steamers were chartered at one time to carry this product to Europe.
Sessimum Seed—A commodity
unknown in commerce a few years ago. From Hankow alone they exported
three hundred thousand tons. I may say that the oil from it is one of
the best of substitutes for olive oil.
Raw Cotton is exported
extensively to Japan.
I have mentioned Hankow.
It is about the geographical center of China, over seven hundred miles
from the ocean, and where for eight months of the year our largest cargo
steamers can go. One-seventh of the human race lives on this mighty
Yangtsze River and its tributaries. Like the Nile, it overflows its
banks every year, thereby making the soil very rich. When the purchasing
power of the people is increased, as it will be. it goes beyond man's
comprehension to even estimate what the enormous commerce of this
magnificent valley will be, as their demands will increase as they get
more money; and, if we go after it, what our share of that enormous
commerce will be is also beyond our highest hopes. We will not have a
walk-over, however, as Great Britain, Germany and Japan are fully alive
to the possibilities, and their brightest merchants are already on the
spot. I ask you merchants to take advantage of this golden opportunity
now, not by staying at home and writing letters or sending circulars in
a language the people can't read, but by sending the very best and
brightest men in your employ. This is a man's job, don't send a boy!
Then, manufactures are
springing up all over the country. They are going into the production of
cotton cloths, and while quantities of the raw material go to Japan,
cotton mills are consuming a large quantity. Iron is being produced
there and some of it finds its way to this country, so I would urge on
you to look into these great and varied opportunities.
As to the stability of
the Chinese; when the revolution broke out every native bank closed its
doors, but I have yet to hear of any firm that lost a cent. Imagine, if
a revolution broke out in these Pacific States and every bank closed its
doors, what would be the result and would it be possible to get out of
it without a heavy loss?
Think of the change that
has come over China. Thirteen years ago a decree went forth that all
Christians should be put to death, and after the revolution at the
request of the new Government all Christendom offered prayers to guide
them in forming their government.
The Philippines—
Recently it was my
privilege to visit the Philippine Islands; my object being to see what
commodities we could introduce at home arid what we could sell to them.
I received a favorable impression of the possibilities of increasing our
trade. Many of our manufactures could be sold and we could import much
more from them. Ten years ago they bought from us $10,775,000. Last year
they bought from us $20,600,000, an increase of one hundred per cent,
and I claim this is only a commencement. In 1905 we bought from them
$12,658,000, and last year we bought from them $21,500,000, an increase
of nearly eighty per cent.
In discussing the
commerce of the Islands, we cannot separate from it the foolish talk of
the independence of the natives. When Mr. Wilson was elected, this talk
was renewed and as a result business was paralyzed. During the past few
months it has been recovering. Any one who has been there for some time
and studied the situation has generally arrived at the conclusion that
they are not ready for self-government. Even with the strong guiding
hand of our Government, it is no easy matter to keep them straight. The
Filipino politicians are the only ones who are clamoring for
independence. The real meaning of it is that they want to get their
hands into the public treasury. If they ever get there it will be a much
worse scramble than is going on at Sacramento. While I am on this
subject I might explain the manner of government.
The municipal government
is entirely Filipino. The assembly is also entirely Filipino. The
commission or upper house has eight members, four Filipinos and four
Americans, the Governor having the deciding vote. They have the
protection of the United States army and navy. When the Americans went
to the Islands there were no roads worthy of the name. Now on every
island there are good automobile roads, good harbors, wharves,
lighthouses and aids to navigation that are second to none in our own
country. At great cost we have made it possible for every boy and girl
to get an education, teaching them English so that they can communicate
with each other; whereas, during the Spanish regime, the people of one
province could not understand the dialect of the neighboring province.
They never were so well off before, and probably never would be again if
we left them to their fate by allowing them to govern themselves at the
present lime. I am sure I voice the sentiment of all true Americans,
when I say that from those rich possessions we should never haul down
our flag.
The Panama Canal—
Now that the Panama Canal
toll question is settled, we call the attention of Congress to the
following:
By the Panama regulations
as promulgated by Professor Johnson, deck loads must pay $1.20 per 100
cubic feet of space occupied on the open deck. Is this fair or just to
the great lumber trade of this Pacific Coast? We, the lumbermen, think
it is a gross injustice to make us pay about thirty per cent more Canal
dues than are charged for any other commodity. Besides, the method used
in determining the Panama tonnage gives to ships a greater tonnage than
any other way of measuring. So that it may be understood.
Example:
measurement of the
steamer "Robert Dollar" is 4483 tons, at $1.20 per ten. amounts to
$5379.60. Her deck load is measured and found to contain 137,800 cubic
feet, at 100 cubic feet to the ton, amounts to 1378 tons, at $1.20 per
ton amounts to $1653.60; a total of $7033.20. This cargo of lumber
therefore pays $1653.60 more than any other cargo that is carried under
deck, A cargo of general merchandise, coal, iron, etc., by this same
steamer would pay $5379.60. The vessel carrying this cargo would be down
to her Plunsoll marks, with, say 8800 tons; but carrying a cargo of
lumber would not be quite down to her mark, yet has to pay $7033.20 with
less cargo. This makes a rate of $1.53 per thousand feet, board measure,
while the weight of the cargo would only be 6766 tons.
We expected that the
Panama, rates were to be made to meet competition with the Suez, and as
the Suez Canal has never charged for deck loads this vessel would save
$1653.60 by going through it.
One of the reasons for
charging tolls on deck loads, as given by Professor Johnson, is found in
his book on page 121, Sec. 4: "In certain kinds of coastwise traffic,
the owners of vessels are tempted to put such large deck loads upon
vessels as to endanger the safety of the ships and thus place the lives
of the crew in peril." Our reply to this is that on this coast more deck
loads of lumber are carried
THE STEAMSHIP "ROBERT DOLLAR"—A MODERN CARGO VESSEL
than in all the rest of
the world put together; and during the past ten years, Pacific Coast
lumber ships have sailed seventy-two thousand miles, carried forty
billion feet of lumber, with a loss of only two million feet of lumber
from excessive deck loads, and without the loss of one life from this
cause. These are not college professors' theories, but cold facts, for
which we have the Custom House records of this coast to prove.
The inconsistency of his
arguments is better shown by referring to page 35 of his report, which
reads as follows-"The necessity of classifying ocean freight traffic and
of collecting tolls in accordance with a schedule which includes both
class and commodity rates, suggests the controlling reason why the ships
rather than the cargo should be made the basis of Panama tolls. Canal
charges based on cargo would be administratively impracticable." After
all his arguments in favor of not charging on the cargo, he makes a rule
that in addition to charging the ship her full tonnage dues, he
penalizes the lumber trade of this coast by charging additional tolls on
deck loads. Using common slang, "Can you beat it?"
The American lumber trade
has received some hard knocks lately. First, in removing the duty and
allowing Canadian lumber to come in free; second, causing American ships
in the coastwise trade to pay tolls; and, third, making all vessels
carrying deck loads of lumber pay thirty per cent more tolls than any
other commodity. Add to these the fact that lumber is selling below cost
of production, and it is certainly not a very brilliant outlook,
although in other lines of business better times seem near at hand.
As long as a ship is not
loaded below her marks, she should pay the full amount of her
measurement tonnage, irrespective of whether she is loaded with feathers
or pig iron, and when such ships pays $5379.60, it should make no
difference to the Canal Company whether part of her cargo is on deck or
not.
The importance of the
lumber industry on the Pacific Coast can be better understood when it is
stated that it gives employment to more men than any other industry on
the coast. It would seem as though it would only be necessary to call
these facts to the attention of the proper authorities to have this
discrimination in the charge for deck loads removed. The lumbermen
desire to pay as much as other commodities are paying—but no more.
In May, 1914, I made a
trip to Washington, D. C., to attend the Foreign Trade Council which was
inaugurated there, and was selected as one of the Councillors.
It was in July of this
year that the European War commenced. Its effects throughout the world
were instantaneous. The Dollar Company had ships in many ports, which
were forced to tie up, and the foreign commerce of the United States
came to a sudden stop. So much so that on the 7th of August I was
summoned to Washington to attend a meeting of fifty men called by
President Wilson, who desired to know what could be done to restore the
foreign trade of the country, as it had come to a standstill.
A committee was appointed
to draft an Emergency Shipping Rill, to be placed before Congress, for
the purpose of starting our commerce going again. Those on the committee
were James Farrell, Bernard N. Baker, Philip A. S. Franklin and Robert
Dollar. These were momentous times, and much to my surprise I was thrust
to the front, amongst the giants of finance, transportation and banking.
Our work was accomplished in three days, during which time there was not
much sleep, but when the work was completed I left for home and was back
in San Francisco after the lapse of only seventeen days. Into that short
time was probably crowded more and greater events than in many months
before. Congress passed the bill we framed without discussion or change.
We made another trip to
the Orient the latter part of 1914 and early part of 1915. This visit,
like others, was strictly on business. I did not stop off in Japan on
account of having water on the knee, and it was only with great
difficulty that I could get around; in fact, my leg was in a plaster
cast. I remained in Shanghai until after Christmas, during which time
many prominent Chinese called to see me.
We arrived in Hong Kong
on the steamer "Mackinaw," which had a cargo of peanuts loaded in
Chinkiang for Canton. To those not engaged in shipping, it probably
seems like a fairy tale that a large steamer should load a full cargo of
peanuts from one port for another port in the same country.
I remained three weeks in
Hong Kong, attending to business and learning to walk again, and also
made many calls on British and Chinese, but on account of the war great
changes had taken place. The entrance to the harbor had beer mined, and
the city was under military rule. All Germans had been arrested and
placed in a detention enclosure at Kowloon, with a regiment of Indians
guarding them. Their families were in a large tenement house, and their
palatial residences locked up and their business in the hands of
receivers appointed by the Government. As they had been doing more than
half the business of Hong Kong, business was much depressed and
disorganized. What a terrible backset the German business has received
by this war! It will take them many years to get back to where they
were, inasmuch as they had been going ahead by leaps and bounds for
several years before the war. It is certainly a calamity to the
merchants, exceeded only by the war itself. The great foreign commerce
of Germany has got a set back that will take years to recover—their
colonies all gone, and their competitors have taken their places. This
will be keenly felt after hostilities cease, and shows the folly of
having military rulers, and the necessity of taking power out of their
hands in every country.
I visited Canton, and
renewed acquaintance with many Chinese and foreigners whom I had known.
The war disturbances and political influences have also had a serious
effect on business here.
We crossed over to Manila
on the steamer '"Bessie Dollar," which finished loading there for San
Francisco. On arrival, we found the steamer "Robert Dollar" discharging
a cargo of coal that the Germans attempted to force us to deliver to
their fleet, then near Falkland Islands, but as our charter called for
Batavia or Manila we insisted on our rights and the cargo was discharged
at Manila. This was the subject for an article by Peter B. Kyne, in the.
Saturday Evening
Post, entitled "Ireland
Uber Alles." The "Robert Dollar" loaded a general cargo, and we returned
to Hong Kong on her. Business on the islands is good. As they are
neutral they were not affected by the war except in the excessively high
freight rates.
Just before we sailed,
the Board of Trade gave Dr Wu Ting Fang and myself a luncheon at the
Manila Hotel, which was one of the largest gatherings of merchants that
had been held in Manila for a long time. Governor Harrison was present.
Both Wu and my self had a very enthusiastic and hearty reception, of
which account the following appeared in the Manila papers:
"The Chairman, Chief
Justice Johnson, introducing the speakers, said:
"By co-operation with the
United States Chamber of Commerce through the Manila Merchants'
Association and Captain Robert Dollar, in the expansion of the trade
between the Americans and the Orient; by the letting down of the bars
against Chinese labor in the Philippines, to enable these islands to
develop to the fullness of their resources, by the importation of two
million or so argriculturists from the neighbor's republic, and by an
alliance of friendship and mutual confidence, for the development of
trade, between China and the Philippines, consummated by Dr. Wu Ting
Fang, these islands are shortly going to be made to produce enough to
support a population of fifty million people; the Dollar line steamships
will bring cargoes of silver and gold to these shores, departing deeply
laden with the fruits of the Philippine soil, and this much-depressed
commercial community is to be lifted out of the rut to ride buoyantly on
the crest of the great wave of prosperity that is destined to roll in as
a result of the big confab between China's eldest states man, the
maritime magnate from the homeland, and local dignitaries at the Manila
Hotel yesterday afternoon.
"The luncheon tendered
Dr. Wu Ting Fang and Captain Dollar yesterday was the biggest boost
function held here in a long time, and was attended by about 250 local
business men, including a number of Government officials.
"Justice Johnson spoke of
Captain Dollar's interest in the physical development of the Philippine
Islands, and turning to Captain Dollar, said: 'Let us hope that your
ships will bring tons of dollars and take out full cargoes of products
from here." * * *
"When applause had
subsided Mr. Pitt arose, and in his introductory remarks leading up to
the presentation of Captain Dollar, said:
"The lifeblood of
civilization is commerce, and the great essential of commercial
development is transportation. Associated with the wonderful worldwide
development in transportation and commerce that has marked the past 50
years is the name of Robert Dollar.
"'Gentlemen, it is a
great honor to present Captain Robert Dollar.'
"Captain Dollar expressed
thorough appreciation of the great turnout of Manila business men to do
honor to Dr. Wu and himself, and then launched out on the proposed
development of the commerce of the Pacific. He spoke of the enormous
amount of ocean traffic in the Atlantic, and said: 'I don't know whether
you gentlemen appreciate the magnitude of it, but the center of the
commerce of the world is coming to the Pacific. There are men in this
room who will live to see more commerce on the Pacific than on the
Atlantic. That is a big statement to make.'
"Taking up the subject of
shipping he said that Congress had legislated the American merchant
marine off the ocean, and then told something about the laws which were
passed three years ago permitting a foreign built ship to fly the
American flag, but he declared that any man, no matter how much money he
might have, who undertook to operate ships under the Stars and Stripes,
would become bankrupt if he stuck to it long enough. Here he explained
that the difficulty at the outbreak of the European war was not so much
lack of ships as it was the financial situation. 'Bills of exchange.' he
said, 'are chiefly negotiated through London, and when the moratorium
was declared everything was tied up for a time.'
"Captain Dollar next
spoke of the Emergency Bill, which was passed to enable foreign vessels
to take the American flag, provided they passed into American ownership
through bona fide purchase. Such vessels, he explained, can now operate
under the same conditions as under the former foreign flag. The
government of the United States, he said, was disappointed at the small
number of vessels transferred under the new law, which was passed for a
period of only two years, he told of a conference with President Wilson
at which the shipowners asked, 'What are you going to do after the two
years?'
"'I said to the
President,' the pioneer skipper declared, 'we don't ask for any
advantage over the foreign ships, but we demand to be put on an
equality, or we won't play in your backyard. There are nearly 2,500,000
gross tons of American owned ships now flying foreign flags,' the
Captain asserted, 'which would make a nucleus for an American merchant
marine if the laws would permit them to operate economically to meet the
foreign competition.' Here he explained that the expense of operating a
vessel under the American flag was about three times as great as under
other register.
"He touched on the La
Follette Bill, which, he said, was aimed principally to put the Pacific
Mail Company out of business. This bill, he explained, would make -t
compulsory for the crew of an American ship to be of the same
nationality as the officers, who are required to be American. The
competitors of the Pacific Mail, he explained, were the Japanese, the
Toyo Kisen Kaisha line being the chief one. Those ships were exempt from
the Seamen's Act.
"As to the Ship Purchase
Bill, now in Congress, the Captain said the Government could of course
operate vessels cheaper than private owners and would compete with
private owned ships, if there were any, but as there were practically no
private owned ships flying the American flag the passage of the bill
could not hurt anybody.
"At this juncture, the
maritime magnate took an optimistic turn in his speech, and referring to
finance, said: 'The meat in the cocoanut in banking is confidence.
Uncertainty and lack of confidence,' he declared, 'were the most serious
drawbacks to business.' Here he assured the assembled merchants that
they now had every reason to be optimistic. He told them of President
Wilson's assurance that the big- business interests of the country need
have no further fear from the legislators.
"'I want to say to you,'
the Captain exclaimed, 'the worst has been done. Go ahead without
thinking what is going to happen next.' He dwelt at some length on the
subject of confidence as the mainstay of business, and referred to
China, where commercial paper is not much in use. 'When a Chinaman says
"can do," ' Captain Dollar declared, 'that settles it, and don't you
forget it.'
"In the United States, he
asserted, the situation has been relieved, and the big business
interests have started a reconstruction on confidence. To illustrate the
necessity for confidence, he pointed out that, although the United
States was at peace with the world at the outbreak of the European war,
yet a war tax to raise one hundred million dollars had to be levied,
showing the interdependence of nations these days.
"Here Captain Dollar
turned to the subject of Philippine progress, comparing the unsanitary
conditions that met his eyes on former visits here with the present
appearance of the city and outlying districts. In trips about the harbor
and along the coast, Captain Dollar observed, he said, greater aids to
navigation than anywhere in the United States. As to land transportation
facilities, he said, 'When I was here before, there were no roads, just
mud; that is all you could call it. Now you can go anywhere comfortably
by automobile.'
"'I tell you to relieve
the despondency that exists here,' he said. 'A little over thirty years
ago there were only five steamers running across the Pacific. Now one
Pacific Mail liner could take all that those five could carry, in one
load. What will the progress be in the next thirty years?'
"At this point he took up
the subject of the campaign now being waged by the United States Chamber
of Commerce and the Foreign Trade Council, to promote closer
co-operation between the commercial interests of the countries bordering
on the Pacific. 'I tried to get them to come here,' he said, 'and urged
that President Pitt of the Merchants' Association continue to engage the
attention of the national commercial organization in the States, with a
view to the speedy development of the trade with the Orient.' He told of
the campaign now being conducted in the South American republics, how
the people down there had no money to buy raw material to sell, and how
new industries were developing in the States to handle the raw products
of the South American customers for American manufactured
goods—industries that never existed in the United States before.
"'Efforts are being
made,' the Captain said, 'to establish a discount market for foreign
exchange in that, in case of future emergencies, the commercial
interests in San Francisco and New York will have the facilities which
were lacking in the recent emergency.' The Captain concluded by
explaining that the object of the United States Chamber of Commerce was
to get the merchants together. 'Great results are attained from unity,'
he exclaimed, 'and co-operation is very necessary. All that is needed
now is confidence. We have reached the bottom, and we are going to go
up."
As the steamer "Robert
Dollar" was waiting for us, we left the hotel and went directly on
board, to sail immediately for Hong Kong, en route to Shanghai.
I found that much
dissatisfaction existed among the merchants on account of the continued
turmoil that bobs up every now and then about independence. Now the
Jones' Bill is before the House, to give the Philippines immediate
independence, although any one knows, who is at all familiar with the
natives, that they are utterly unable to carry on a separate government,
and should our soldiers be recalled, another nation would immediately
take possession.
We returned to Shanghai
and paid a visit to Hankow, arranging to materially increase our
business and to buy-quite a large piece of land for a lumber yard in the
center of the foreign concessions. I am fully convinced of the great
future of this center of population, situated as it is on the crossroads
of the railroad system of China.
OFFICE OF THE ROBERT DOLLAR COMPANY—TIENTSIN
Our firm is now well
established, owning a city block on the river front and in the center of
the city, an office and a comfortable house, a place we can call home.
Our business has been increasing in a very satisfactory manner.
I visited many of the
prominent Chinese, and was entertained by them. We were here in January,
when the weather was very cold, the thermometer often falling below
zero; there is not much business doing until March, when it opens in
full swing.
We next visited Peking. I
was agreeably surprised with our Minister, Mr. Reanch, Being a college
professor, I expected to find him academic and not interested in
commerce, but I found him a worker, ready and willing to assist in
commercial matters as if he had been a business man all his life.
I met several members of
the Cabinet, but as the Japanese controversy was at its height and they
were having conferences every day, I did not trouble the President. I
had an invitation to lunch with Li Yuen Hung, the Vice-President, and
spent an interesting two hours alone with him. We met in the house that
he occupies, which formerly was the residence of the late Emperor. I was
shown the Emperor's bedroom. which is kept just as he left it. The house
is on a point of land on one of the lakes in the Forbidden City, with a
narrow neck of land connecting it to the shore, and is therefore easily
guarded. (Vice-President Li is now President on account of the untimely
death of Yuan.) Our conversation was mostly on foreign affairs. He was
anxious to know of the affairs of the world, in general, and of the
United States, in particular. He has a great admiration for our country
and has been tracing its wonderful advancement of the last one hundred
years, and hopes that the advancement of China will be equal to ours. He
is a great and good man. and I hope he may be able to carry out his high
ideals of a united and progressive China. On his assuming the
Presidency, I had a very friendly complimentary telegram from him.
We (when I use the
plural "We"' I mean that I am always accompanied by my faithful
companion and counselor, my wife) next visited our business
interests in Tientsin.
1 had an interesting
visit with Liang Shoi Yei, who was said to be the power behind the
throne. The subject discussed was the development of the Yangtsze valley
trade. I also had a pleasant visit with Dr. Morrison—that stalwart
British adviser to the President, and probably the best living authority
on Chinese politics. He is the right man in the right place. Another
pleasant call was on Mr. Collins, the representative of the British
Anglo-French Corporation, of which I am a director. He is also manager
in China for the China Mining & Metal Company.
I also spent a pleasant
and profitable week calling on and renewing old acquaintances in this
city. The weather was intensely cold. We had a snow storm and a dust
storm, so we got about all that Peking had to give, even the extremes of
the weather.
I had two very pleasant
visits and a luncheon with Chang Chien. the Minister of Commerce, and
arranged with him about the return visit of the Chinese Chambers of
Commerce, to supplement that which we made in 1910. He was working hard
to get representative men to go. It was arranged that they would come on
the steamer that I had decided to voyage home on. We returned to
Tientsin for a couple of days, then went back to Shanghai, where it was
very much warmer. At Shanghai, we had several banquets and farewell
entertainments, and a great number of the merchants came to see us off
on the boat.
Just before leaving, I
addressed the Saturday Club, of which the following is a newspaper
report:
"American shipowners have
been accused of lack of enterprise in not having ships in the foreign
trade. I will endeavor to tell you that they are not to blame, and also
to show you who is responsible for the present condition. Inasmuch as I
operate vessels under both the British and American flags, I have the
cost of operating each, from data on my books.
"In 1862 the tonnage of
the ships under American registry exceeded that of any other nation. In
China, previous to this, more than fifty per cent of the carrying trade
was in American bottoms. The trade of the Yangtsze was opened by
American steamers, whereas, now, there are no American ships there.
"The statement published
in the China Press of yesterday, which was copied from the New York Sun,
was written by myself and is correct. It was that an 8000-ton steamer
costs $17,236 more per annum to operate than a ship of the same size of
any other nation.
"Boiler inspection, and
inspection requirements are so drastic that it increases the operating
cost materially, and to cap the climax, the Seamans' Bill has just
become a law, which, unless modified, will absolutely prohibit the
Pacific Mail from operating and make it easier for ail Japanese ships.
"I have information from
Manila that the agents of the Pacific Mail have received orders not to
book any freight or passengers after September, when the law will come
into force. Is it any wonder that the American flag has disappeared from
merchant ships on the ocean?
"Then the European war
came on us like a thunder bolt out of a clear sky. The result was a
complete tie-up of all American foreign trade, and for three weeks
practically none of our products left our shores. At that our people
woke up (they had been sound asleep before) to the fact that we had no
American banking facilities in foreign lands, no American ships to carry
our commerce, and we had just started to market the biggest crop we ever
had. Then came a cry from every part of the country that we must have
ships, so President Wilson called fifty business men of the country to
advise with him as to what was to be done. The result was, American
citizens were allowed to register foreign-built ships to engage in
foreign trade only. Up to the present, something over five hundred
thousand net register tons of shipping has changed to American register.
Most of it had been owned by Americans, but by our laws were not allowed
to fly the American flag. At that time over two and a half million gross
tons of ships were owned by Americans, and were flying British and other
flags.
"I consider it an
international misfortune that one of the largest nations of the world
should have no ships. Our allies were certainly of that opinion when
they required supplies from America, and there were no American ships to
carry them, with German cruisers menacing their ships; whereas if there
had been American ships the commerce of the Atlantic would not have been
paralyzed as it was.
"What would be the
condition in the world of commerce today if both sides were able to keep
plenty of commerce destroyers on the oceans?
"Many more ships would
have come under the American flag had it not been for the uncertainty as
to what Congress would do in the way of changing our laws. After all the
talk and excitement of wanting a merchant marine, not a single effort
has been made to permanently change our laws so as to enable us to
operate our ships on as favorable terms as our competitors; and, as the
new temporary measure is only a makeshift for two years, if our laws are
not changed, all the vessels that have come under the flag will be
compelled to return to their former register, because it is a financial
impossibility, under normal conditions, for any ship to be operated
under the stringent American regulations. The prospects of again seeing
American ships engage in foreign trade, in the proportion that a country
of the importance of the United States would warrant, are still very
remote, or to put it in plain English, the United States must enact laws
permitting her citizens to operate their ships on the same terms and
conditions as the ships of all other nations, or their citizens will be
compelled to put their ships under foreign flags.
"To give you an idea of
the lack of support given to our ships by our Government: The mail
contract was awarded to Japanese ships to carry the mail from San
Francisco to Honolulu, although there are several American vessels
running on that route.
"All this has reference
only to the vessels engaged in foreign trade, as those engaged in
coastwise trade are protected against foreign competition, and are
enabled to make 'The dear American public' pay for the excessive cost of
operating.
HONORARY CHINESE COMMISSION TO THE UNITED STATES—1915
"All the American
shipowners ask is to be permitted to buy their ships where they can get
them cheapest, and to be permitted to operate them on the same terms and
conditions as their competitors. They ask no advantage or preference. If
this is granted they will feel able to give the nation a merchant marine
worthy of the name.''
We sailed from Shanghai,
on the 9th of April, on the steamer "Manchuria," with eighteen Chinese
Commissioners in the party. I left the ship at Kobe and went to Tokio to
have a conference with the officials of the Japanese Chamber of Commerce
there, and called at the American Embassy to see Ambassador Guthrie and
found he was all ready to depart for America. He and Mrs. Guthrie came
over with us on the same steamer, which made it very pleasant.
We arrived in Honolulu on
the 26th of April, 1915. The Chamber of Commerce there gave us a
banquet, and we had a very pleasant time, the principal merchants of
Honolulu being present.
On the way over. I had a
number of conferences with the Chinese Commissioners, which took up
several hours for many days as they were endeavoring to find out what
they might expect to learn on their visit to America.
We arrived in San
Francisco on the 3rd of May, where the Commissioners were tendered a
hearty reception by representative men of the city and members of the
United States Government. The official report of the reception follows:
The Honorary Commercial
Commissioners of China arrived at San Francisco on the Pacific Mail
liner "Manchuria" at 5:10 o'clock the afternoon of May 3. A committee of
representatives of the National, State and City Government boarded the
steamer at quarantine and were received on the promenade deck by
President Cheng-Hsun Chang of the Commission. J. O. Davis, Collector of
the Port, extended a welcome to the Commissioners on behalf of President
Wilson: President W. N. Moore and Vice-Presidents Frederick J. Koster
and Robert Newton Lynch of the San Francisco Chamber of Commerce; Hon.
Chester Rowell on behalf of Governor Johnson, and Mayor James Rolph on
behalf of the City of San Francisco. When the Iiner docked. Judge Thomas
Burke, President of the Associated Chambers of Commerce of the Pacific
Coast, under whose auspices the tour was made, and C. B. Yandell,
Executive Secretary of the Seattle Chamber of Commerce and Chairman of
the Committee on Arrangements for the Associated Chambers, boarded the
steamer and took charge of the visitors, who were presented to a
reception committee consisting of Edward T. Williams, head of the Bureau
of Far Eastern Affairs, Department of State; E. C. Porter,
representative of the Department of Commerce; Commissioner General
Anthony Cammetti, Department of Labor; Commissioner Samuel W. Backus,
Bureau of Immigration,
They were given as much,
perhaps more, entertainment than they could stand. On account of the
pending trouble with Japan and a telegram stating that war was
inevitable, the party thought best to abandon the tour and return. But
by an extraordinary effort on my part, after a long and confidential
conference of three hours, I persuaded them that they must go through
with the itinerary that was laid out. I assured them that the Japanese
demands would be modified so as to avert war. and to cap the climax,
before I had finished my appeal, a cable from China was handed in,
stating that a settlement had been arrived at.
The reception accorded
the Commission could probably be summed up by the remark of the Mayor of
New York City, that he never had seen such a hearty reception given to
any foreign visitors. The climax was reached in that city, where the
plans were carried out to perfection, and nothing was left undone for
the comfort and pleasure of the visitors.
The result of this visit
has been a decided and tangible increase in American trade, and, through
conferences with the merchants of twenty-six cities, has produced a
feeling of friendship (which is the forerunner of commerce) that will
never be forgotten. The visitors travelled 10,392 miles, had forty-three
banquets, and, best of all, visited two hundred and forty-three
factories.
Those of us who have
given our time and money have certainly been repaid over and over again
by the beneficial results to our commerce and more especially by the
increased friendship that now exists between the two countries.
The following is my
report to the Associated Chambers of Commerce:
That the visit of the
Chinese Commission to America was a great success is admitted by all.
The large cities vied with each other in entertaining them until they
reached New York, when the climax was reached. The arrangements and the
order in which the program was carried out was perfection itself. One of
the big merchants told me no foreign party of merchants had ever
received so hearty a reception as this party. As to the results
commercially, I know of several large transactions that have been
consummated, both in selling and especially in buying. A steamship line
and a large banking enterprise are about to be established. Such visits
produce a much greater friendship between nations, and in this
particular visit this very desirable condition has been fostered and
much increased. For the future, we can confidently look forward to an
increased friendship which naturally will enable us to increase our
commerce to this country that is destined to show by far the greatest
development of any part of the world: and, if Congress would only permit
our citizens to operate American ships between China and America, we
certainly would get our fair share of this tremendous increase. As, by
an Act of Congress, the entire control of the Pacific has been
completely turned over to the Japanese who are to be our most active
competitors, the situation as far as Americans are concerned is
discouraging in the extreme. This is especially to be regretted, for the
Chinese are most friendly to us and certainly treat us as a most favored
nation, so if we don't get a big share of their business it will be on
account of our own restrictive legislation, and not on account of the
Chinese.
In 1915 Mrs. Dollar and I
presented to the Presbyterian church of San Rafael a set of chimes,
which were installed in the belfry and added greatly to the attraction
of the town The gift was appreciated by the citizens, as old familiar
tunes are played every Sunday. There are ten bells in the set, and on
the largest is the inscription: "Presented to the First Presbyterian
Church of San Rafael. California, by Mr. and Mrs. Robert Dollar." |