The year 1916 opened on us
with all the trials and tribulations caused by the war. Our greatest
difficulty is that we don't know how to arrange our business, as changes
are continually occurring. We were fortunate enough to buy a cargo
steamer of over seven thousand tons for $500,000, a price two and a half
times her normal value, but she cleared half of her purchase price the
first trip, and before the year was up had paid for herself.
On the 22nd of January, a
party of us left for New Orleans, to attend the annual meeting of the
Foreign Trade Council. When we arrived at Los Angeles, we were informed
that three miles of the Southern Pacific track had been washed out and
no trains would go through for a week. Through the kindness of the
president and vice-president of the Santa Fe Railway, our car was taken
by that road, and, at considerable expense, they got us into New Orleans
but one hour before the meeting commenced.
Mr E. Sweet.
Vice-Secretary of Commerce, delivered the address on the American
merchant marine, to which I was asked to reply. The large hall was
packed full even to standing room. When I had finished speaking I
received a most enthusiastic reception, in fact, I have never seen a
speaker receive such an ovation. The following is the stenographer's
report of my remarks:
ADDRESS OF ROBERT DOLLAR
BEFORE FOREIGN TRADE COUNCIL
ON "DEVELOPMENT OF A NATIONAL SHIPPING POLICY"
Mr Chairman and
Gentlemen: You have heard that what we need is a merchant marine owned
and operated by the Government. Now, Mr. Sweet has said that he differed
with me. and I am very glad he did, for if we all agreed we would be men
of putty, and it would not be necessary for me to get up and talk at
all; all I would have to say is. "That's right—what he says." I do not
propose to say that what he said is just right.
In discussing this
subject, it is necessary for us to look at it from a broad viewpoint.
First of all, it is very, very interesting to us who are engaged in the
foreign trade. My interests are more in foreign trade than in shipping,
though you are led to believe that my interests are more in shipping.
But to see an audience such as this interested in foreign trade is
encouraging to us in the extreme, and I want to say to you gentlemen
that we have a good many things to discourage us. You see the movement
that has been made in South America by the establishment of banks.
Previous to this, when we had bills of exchange to sell or buy, they
came through foreign banks. Officers of foreign banks are human They are
men of their own nationality, and blood is thicker than water, and it is
quite natural for them to give the tip to the other fellow as to what we
are doing. I have got a tip myself, so I know what I am talking about!
(Laughter.)
The American
International Corporation is another step in the right direction. You
were told here yesterday the great difficulty about us being able to
sell our products on account of the money having been loaned by foreign
nations, and they favored their nationality. Another illustration that
"blood is thicker than water." Another encouragement in the midst of our
discouragement, was that the American International Corporation bought
out the ships of the Pacific Mail that remained on the Pacific, and
continued the trade from the Pacific Coast to South and Central America.
Those ships were on the eve of being sold; in fact. I don't think that
the corporation got in more than a few minutes ahead of the other party.
If those ships had been sold, it was the intention to divide them and
they would have gone hither and thither, and our Pacific Coast would
have been without any commercial communication with South and Central
America. That was another encouraging sign.
Now, then, in discussing
this merchant marine, it is not a question of the shippers themselves.
The people who are interested are many; the whole of you—there is not a
gentleman in this room who is not interested in the shipping business,
indirectly, of course. Here are the farmers and the manufacturers. How
are they going to ship their products to foreign markets if there are
not ships? Here are bankers. What are the bankers going to do if there
is no foreign trade—those who are dependent on that? Then, there are the
merchants who are doing business in foreign countries who buy our
products here and sell them in the foreign countries; and then, last of
all, are the ships. What will the ships do if we have not the bankers?
Mr. Sweet said that our
commerce was absolutely tied up at the commencement of the war because
we did not have ships. I take a different view from that. What tied up
our ships was the lack of banking facilities. A moratorium had been
declared practically throughout the world, and hundreds of ships were
left loaded and lying in harbors at that time. Merchants dared not send
them out because they could not sell their bills of exchange. They dared
not send their ships to foreign countries, for they did not know whether
they could get their money out of them, and for more than two weeks our
ships were tied up. until a meeting was held in Washington, when the
great magnanimity of our bankers permitted us to start in business
again—they taking the responsibility. Otherwise, the ships would have
been held up indefinitely. (Applause.)
Now as to the help or
detriment that Congress gives us. I happened to get a telegram, sent to
me here, that really did not pertain to this organization at all. It is
a private telegram. It reads this way, and it is pertinent—I hope that
you gentlemen will see that we have got to be friendly with the nations
that we are doing business with. You can catch a great many more flies
with molasses, you know, than with vinegar. It reads this way: "Senator
Lodge in the Senate and Mr. Burnett in the House have introduced bills
requiring all Chinese in America to register within one year; making
failure to register a crime punishable by several years imprisonment. Mr
Baker also introduces a bill directly against all Asiatics."
Now, what is the meaning'
of that? It means that, when I go over to China—many of our Americans
are over there--that if we put the Chinese in jail here, they can put us
in jail over there, and will make an end of our foreign trade with
China. It is humiliating in the extreme, gentlemen, for me to land in
this country, coming from China-—I have made many trips from there—to
see Chinese gentlemen and Chinese ladies, just as good as any one in
this room here, fired over to Angel Island and subjected to all kinds of
indignities, and when I go to China with my wife, we walk ashore the
same as if we were privileged individuals. Is that right? Why shouldn't
we go to an Angel Island over in China, just as logically as we send
them to our Angel Island here?
Now, as to the condition
of the American Merchant Marine, and the reasons why the United States
should have it enlarged to correspond with importance in the world.
This chart was gotten up
by Mr. Ross, and has been reproduced here. These bars are ten-year
intervals. You see that this is 1705 and this is 1800. (Indicating.) You
see that we reached our maximum along here. (Indicating on the chart.)
Here we were carrying 91.5 per cent, of our products to foreign
countries; then down here, we got down to the time of the Civil War,
when this drop took place here. Then, by the great wisdom of Congress,
the drop continued right down (Laughter.) And I want to tell you,
gentlemen, that along here we not only had the most ships and the most
tonnage of any nation in the world, but we had by all odds the very best
ships afloat. When the decline took place we were the rivals of Great
Britain. They started in to build iron ships. We continued with wooden
ships, because we had no encouragement—in fact, nothing but
discouragement. From this line here, to this line here, (pointing to
i860 and 1914), that all means discouragement. (Laughter.) To this up
here, (indicating 1810) that was all encouragement; you see how it went
up?
Now, by the Canal Act, we
were permitted to import ships into this country free of duty, and it
has been constantly thrown at us that not a single ship accepted the
permission Well, the reason is very easy to explain. If we imported
those ships we would have to go into foreign trade with them, and we
would be in competition with the ships of the whole world; with ships of
nations whose laws were the most favorable that human mind could devise,
while ours were just the reverse. So, any man that imported a ship and
put her into the foreign trade and operated her under the American dag
was sure to make debt, and it was only a question of how much money he
had until he would go into bankruptcy. (Applause.) That has always been
concealed by the politicians and others who are talking for effect. They
say, "You don't put any ships under the American flag; therefore, you
have not the enterprise and the get-up to do it." That is a falsehood;
it is not right, because before this war, American citizens had more
than two million gross tons of shipping, entirely owned and successfully
operated by American citizens, and were flying foreign flags on those
two million tons. Now, does it not stand to reason that, if our laws
were as favorable as the laws of those foreign nations under whose flag
they were operating, we would be able to operate those ships under our
own flag? And there is not a shipowner who would not rather use his own
flag than the flag of another nation. I always feel, gentlemen, in doing
business under the other flag, like the man who is doing business n his
wife's name. (Applause and laughter.)
I am not going to bother
you with all the handicaps under which we labor. It would take me about
the rest of the day to tell about the handicaps that: produced these
very things. Others are going to tell you about them, so I am relieved
of that subject. A good many people think that we are cramped for want
of ships and tonnage: that it is local and that it only pertains to some
parts of the United States. It is general and the shortage of tonnage is
throughout the whole world, and I have looked over the conditions
throughout the whole world many, many times in the last few months, but
I cannot find a single place that is any worse off than any other. They
are all alike. It is a question of supply and demand. The supply is far,
far short of the actual demand, and you gentlemen know that whenever you
have a commodity for which there is far, far more demand than the
quantity available, what the result is. The price goes up. There is none
of you who is shy about playing a trick of that kind. (Laughter.) So we
are not being discriminated against. Therefore you gentlemen appreciate
the situation that you are in. I happen to own some British ships. The
British Government has notified me that when I want to charter my ship,
or send her from one port to another, 1 must get permission from the
Government to do it. Suppose the British Government got at outs with
this country and said: "You can't carry any cargoes here; you have got
to go elsewhere." You can readily see the position our commerce would
get into if this were done. Then you would appreciate the advantage of
our having ships under our flag.
This is something that
reminds me of the American and the Englishman, who were arguing about
the relative greatness of our two countries. The Englishman did up the
American, and the latter had nothing to say. As a parting shot, he said:
"If you don't look out, we will stop this Gulf Stream from going over
there, and we will freeze out the whole lot of you." So, 't would be
very easy for Great Britain, or one of the big nations, to freeze us
out. consequently we had better stay quiet and not say too much about
it.
A million and
three-quarter tons of shipping have been sunk since the war. All of the
German and Austrian ships are interned, and England and France have
commandeered over two thousand ships, so you can see the reason why the
shortage has occurred. It is quite apparent to any one. The war has not
decreased the amount of tonnage that had to be moved in the world. In
fact, I think it has increased it somewhat. In some lines it has
decreased but there is more tonnage to be moved now than before, hence
it is impossible for the ships to get around to do it. Now, w e were
told last year that, if this Ship Purchase Bill went through, we would
immediately get ships. Every ship cleared in these United States is full
to its capacity, and I defy any man, the Government included, to get any
ships built inside of two years. (Applause.) Now, that's the relief that
you are going to get by the Government building its ships. It cannot do
an impossibility, and we all know that it cannot build them tn our
yards, as the yards are full to their capacity, and will lie for two
years; and we all know that the laws of the great nations have recently
been changed so as to prohibit the sale of vessels to any other nation.
You cannot go out and buy ships and bring them :n here now. Each nation
wants to keep the ships it has in case its merchant marine becomes
depleted.
Now, what is going to
happen after the war? That, I think, no man can tell. That the bottom is
going to come out of freights I don't think there is any question. Other
people may have a different opinion from that, but what I am banking on
is, that when all the German and Austrian fleets are released—and
probably half of the transports will be released after the war—there is
not going to be cargo enough available, and you will see the biggest
crash in freights that you ever saw. We have gained 583,000 tons under
the Emergency Act, and, in all, we now have about 1,700,000 tons engaged
in foreign shipping, which is a great deal more than we had four years
ago. We then had about half a million tons engaged in foreign shipping.
That increase has been caused by the half million tons that did come in,
and then the exigencies of the case were so extreme that old ships,
which had been condemned, have been fitted out and are now engaged in
the foreign trade. Of all the ships they are building today, there are
only forty cargo ships building in the United States, and cargo steamers
are what we want. The yards are full, budding other kinds of steamers,
but it is the cargo steamers that arc going to relieve you gentlemen. Of
the fleet of Great Britain, two-thirds of all their ships are cargo
boats, and that is what has given Great Britain control of the markets
of the world, and we have only forty such vessels on the stocks, and
two-thirds of the ships that have been built in our yards—fine, big
ships— have gone under the. Norwegian flag.
Now, the Emergency Act of
1914 gave us great encouragment.
I said to myself:
"The end has come; now we
are going to get a merchant marine," and as I had occasion to go to
China. I went away quite happy. I was not happy very long, however, when
the Seamen's Bill came down on us like a flash out of a clear sky.
(Laughter.) The Seamen's Bill was drafted to aid American sailors—the
very title of the bill tells you that. (Laughter.)
I have some statistics
here that I just received from San Francisco. The seamen there all have
to take out certificates. There were 2064 who took out certificates in
San Francisco up to last week; of these, 168 were Americans, 345 were
naturalized citizens, and 1551 were aliens. 1 will give it to you in
percentages because I want you to put the figures in your pocket and
remember them. There are eight per cent of these seamen American
citizens. That's what all this trouble is about, this bill to protect
this eight per cent. Seventeen per cent were naturalized, and
seventy-five per cent were foreigners. All this dislocation of business
was caused to help this poor eight per cent of American citizens!
Then this bill did not
take into consideration the officers of the ships. They were entirely
disregarded; this was for seamen. Now, you gentlemen in business know
what it is to have men at the head of your business. These men were
ignored. Take the Pacific Mail owners. They employed American officers,
American engineers, quartermasters, etc., totaling quite a large number;
but, because they employed Chinese crews, they had to get out of
business; and these American officers, who had their homes in San
Francisco and lived there, prosperous men, had to seek other employment,
because, today, the officers on ships corning into San Francisco are
Japanese citizens, every man. I do not see why our officers, who by our
laws must be American citizens, should not have been given a little
consideration as well as the eight per cent of the sailor American
citizens. However, it is the law of the land, and we have to put up with
it.
The only criticism I have
to make about it is that it is unfortunate that the Government was not
strong enough and big enough to enforce that law to the absolute letter
and made us toe the mark one and all without compunction. If it had done
that, truly gentlemen, there would not be any Seamen's Bill, because
one-half of the ships in American ports seeking clearance would have
been denied clearance, and there would have been such a howl set up by
you gentlemen that there would have been no Seamen's Bill.
We have another diagram
here which is very instructive. The upper line represents the Japanese
tonnage just before the Seamen's Bill went into effect. The third line
shows the Japanese tonnage in November. 1915, a year after; if any of
you have a spyglass, try to see the American tonnage at this latter date
(laughter and applause), and I think after another month or two you will
have to have a magnifying glass to find any American tonnage.
Statement of Increase in
Japanese and Disappearance of American Steam Vessels Engaged in Oriental
Commerce on the Pacific Ocean:
Number of vessels
November, 1914: Japanese, 22; American, 6. Net tonnage of vessels, same
date: Japanese, 89,932 tons; American, 45.315.
(This was before the
Seamen's Bill became effective.)
Number of vessels.
November, 1915: Japanese. 42: American 1. Net tonnage, same date,
Japanese. 141,262 tons: American. 3186.
(This was after the
Seamen's Bill became effective.)
Now, Mr. Chairman, rap on
the table when my time is up, because I am interested in this subject,
and I may go on too long. (Laughter and applause.) Now, then, by this
act of Congress the Japanese have gained complete control of the
Pacific. I have heard of their hopes and ambitions for many years. But
none of them expected to live to see this. They have said, "The day is
coming when the Japanese nation is going to get control of the Pacific,"
and the Japanese, like ourselves, think that the great traffic of the
world is going to be transferred from the Atlantic to the Pacific, just
as sure as it was transferred from the Mediterranean to the Atlantic.
When I was in Japan this
last time, the shipowners of Japan invited me to a meeting, and when I
got to the meeting there was quite a number of shipowners there, and I
noticed a number of papers on the table. The President told me it was a
translation of the American Seamen's Bill, and what they wanted to say
was that they could not believe that Congress had turned over the
control of the Pacific to them. They wanted me to explain to them if
that could be possible, and when I informed them it was, they said:
"Truly we have control of the Pacific Ocean, not so much by our own
efforts as by an act of the Congress of the United States." (Applause.)
Now, then to bring the
thing home to yourselves, gentlemen. If any of you want to travel to the
Far East from a United States port, you will sail on a Japanese steamer.
If you have any business over there, and are sending letters and getting
them from there, they will be carried by a Japanese steamer. If our
great Government wants to send any important letters over there, the
Japanese will carry them, except by an occasional steamer of the
transport service. Now, we are all interested in the Philippine
Islands—-although I see in Congress they propose to turn them over to
the natives—but; until we give them up, surely our Government should
provide the means of getting letters there. Manila is about eighteen
days from San Francisco. Now. what have you got to do if you want to go
over there? You will go from San Francisco to the Hawaiian Islands—that
is our own country—then to Yokohama. Kobe, Nagasaki, and across to
China, to Shanghai and Hong Kong, and you or your letter will reach the
Philippines in thirty-three days. That is the best that can be done. Is
there any other nation in the world that would stand for that sort of
thing? No nation, no matter how small, would trust foreigners to furnish
transportation to its colonies.
In looking over the bills
introduced in Congress, I notice that there are forty bills which were
introduced in Congress that affect our commerce. I looked through them
to see if I could find any of them that were going to help us. Not a
single one of them: every one of tliem imposes more exactions on us!
Hence the shipowners have become completely discouraged — and I wish to
say this for men who own American ships in foreign trade, and those
Americans who own foreign ships in American trade — they are men not
easily discouraged, but the continued hammering and discouragement has
been so great that they are almost forced to throw up the sponge, and
say: "Well, if you won't allow us to operate our own ships under
conditions that foreigners are allowed, then for God's sake give us
Government ships." I, therefore, agree with Mr Sweet.
Mr Wilson said in
Washington, while I was there: "If the shipowners of the United States
will not give us a merchant marine, then the Government must give the
merchants a merchant marine." But he did not say that he had securely
tied our hands behind our backs when he turned us into the prize ring
and turned the other fellow loose to "hammer the stuffing out of us."
(Laughter and applause.)
The other day Colonel
Goethals was in San Francisco. He delivered an address, and pointed out
to us the iniquity of the measurements of our ships. He cited this
instance: "Here are two ships that went through the canal. They were
sister ships, exactly the same. One was flying the American flag and the
other was flying the British flag.'' He said: "By the increased
measurement of the American ship, she was paying five hundred dollars
more toll every time she went through the canal than her sister ship
when flying the British flag." That's the encouragement and the help we
are getting from the Government!
Now, Government ownership
is not an untried thing. The last time I was in Australia they had a
Government line running from West Australia—in fact, it had just gone
into the bankruptcy court when I happened to be there. (Laughter.) The
Government papers came out and said: "Yes. we have lost a great deal of
money, but it is not all lost; the regular lines charge a great deal
less freight." I have not the exact figures, but they lost about
two-thirds of the value of the ships, and they only ran the line three
years. However, as long as you have the taxpayers behind you and plenty
of money in the treasury, I say to Mr. Sweet, surely you can run
Government ships. Now, they propose to invest $30,000,000 in ships. Why,
there isn't a large steamship company throughout the world that has not
$30,000,000 in ships. That is only a drop in the bucket. That is only a
small commencement of what is going to happen.
Now, to wind up. I have
just this to say: That if a commission of practical shipping men was
appointed—not politicians mind you—(laughter), but practical shipping
men, and they are given a free hand, as Mr. Sweet stated, I have only
this to say: you will never see a Government-owned ship-—never. The
American people will get up and give you an American merchant marine so
quick that it will surprise the most sanguine, as there is plenty of
money available
I had an experience with
Senator Nelson. They put me through a long "course of sprouts" in an
investigation at Washington (laughter), and he said to me: "Mr. Dollar,
why don't you make all your ships American ships?"
"Because," I said, "I
haven't got money enough, and I couldn't stand it."
"Oh, then," he said,
"that's the measure of your patriotism?" (laughter.)
And I said: "Yes, sir."
So after the session was
over, I said to the Chairman, Senator Burton: "Senator, will you permit
me to ask Senator Nelson a question?" He replied: "Yes, sir."
"You know you have been
asking me questions, going into the hundreds," I said. "Senator, will
you answer me truthfully this one question I am going to ask?"
(Laughter.)
"Yes sir."
"Now, Senator, let us two
go in and build a ship," I said. "Now, here is an American ship we can
get for $700,000, and here is the same ship we can get in England that
will cost $250,000. Now, the extra expense of running the American ship
will be about $30,000. Now, Senator, when I say that to you, I will ask
you this question, whether you and I will build a British or an American
ship?"
And he said: "A British
ship, sure."
"That's the extent of
your patriotism, and you a United States Senator—I'm ashamed of you!"
(Applause and laughter.) So it depends altogether, you know, on what
foot you have the shoe.
That concludes what I
have to say. I thank you for this hearing, and I want you just to study
up these things. Think of us having our hands tied securely behind our
back and going into that ring. Remember that, gentlemen.
We then went to New York
where we met my son, Melville, who was loading a steamer for
Vladivostok. I was elected a director of the American International
Corporation and attended its meetings. The paid up capital is
$50,000,000, and its primary objects are to develop American foreign
trade. I was a guest of honor at a luncheon at the Chamber of Commerce
of New York. Also attended meetings of the Foreign Trade Council, at
India House, which has grown to be very popular and of which I was one
of the charter members, when it looked as though it would rake a long
time to grow, but it has sprung up like a mushroom and now has a long
waiting list. We went to Washington on the 8th of February and attended
the annual meeting of the Chamber of Commerce of the United States.
Ambassador Koo ably addressed the meeting on China, and I followed his
talk and backed up what he said of the honesty of the Chinese and the
great future of China.
The day I got home I
attended a meeting of the Merchants Exchange and the Chamber of
Commerce, so public affairs continue to take up more than half my time.
During this year, we bought several steamers and re-sold them again,
mostly to Japanese. We also sold all our own vessels we could spare, the
"Robert Dollar," "Stanley Dollar" and "Grace Dollar." Although we really
required these vessels, the prices we were offered were so attractive we
let them go at over three times their original value.
During this year. I paid
several visits to Vancouver, B. C, looking forward to establishing the
terminus of our steamers there, and also with a view to budding a
sawmill to furnish us cargoes for our foreign going steamers. In San
Francisco, there had been a longshoremen's strike for some time. They
took such complete possession of the waterfront that the United States
Government had to get a permit from Mr. Murphy, president of the Union,
to remove specie from the dock to the sub-treasury. This so incensed the
merchants that a meeting in the Merchants Exchange was held on the 10th
of July, which was by far the largest and most enthusiastic meeting ever
held in San Francisco, and at which a Law and Order Committee was formed
and a fund of one million dollars was promised. This absolutely stopped
violence, and the police judges were compelled to do justice by force of
public opinion.
In October, after a visit
to New York. Philadelphia and Washington, we visited friends in
Coulounge and Ottawa. At the latter place, .Senator Edwards gave me a
complimentary luncheon at which four Cabinet Ministers, Sir Wilfred
Laurier, three noblemen and several of the great men of Canada met to do
me honor. It was certainly a great compliment, more especially as when I
first left Ottawa I was receiving wages amounting to $26.00 a month
Excerpt from and Ottawa
paper:
"On a cool, crisp, fall
day, seven and fifty years ago, a young Scotch lad clad in homespuns
walked into the Ottawa office of Hiram Robinson, lumberman and demanded
a job. He got it—washing dishes and cleaning stables up in the shanties
at ten dollars a month.
"This morning this
erstwhile shanty boy returned to Ottawa for a brief stay—Robert Dollar,
western lumberman and vessel owner, pioneer of trade between North
America and the Orient, friend and confidant of the Chinese President,
and regarded as one of the fifty greatest men of the United States.
"Mr. Dollar is staying
with relatives, and when seen by The Journal this morning was busy
talking over old times with his old employer, Mr, Robinson, the man who
gave him his earliest start.
"'Yes,' he said, 'Mr.
Robinson gave me my first job way back in 1859, and I started in at the
bottom washing dishes in the shanties and I don't regret it, for today,
if I go up to one of my coast camps and see the dish boy making a poor
job of things I can set right in and show him how things should be
done.'
"From chore boy, Mr.
Dollar worked his way to the top of the lumber business. Leaving Mr.
Robinson to go up to Muskoka, and then, at the end of the Civil War.
crossing to Marquette, Michigan, he entered business on his own account.
An ardent student of Horace Greely, the advice 'Go West, young man,'
sank deep into the lumberman's mind. As a result he was unsatisfied
until the shores of the Pacific came within his ken. And even then a
hankering for still further 'Westing' remained. His lumber business
increased until he was forced to build ships to carry his wood, and
finally he entered the trans-Pacific transportation business with such
success, that today the Robert Dollar house flag is as well known in the
Chinese treaty ports and those of the Russian Orient, as it is in
Vancouver and 'Frisco.'
"Today eight great Clyde
built freighters are running to the Orient, and, thanks to the American
Seaman's Act, every one now flies the Union Jack and has its home poll
in Vancouver instead of San Francisco. Their owner, with whom lies much
of the credit for opening Oriental markets for American products, stated
today, that, as one result of the transfer of his vessels to a Canadian
port, he would devote every effort to building up a new market for
Dominion-made goods in the Far Fast.
"Mr. Dollar has just
completed the purchase of a quarter of a mile of deep sea frontage on
the north shore of Burrard's Inlet, near Vancouver, where, the moment he
returns to the coast, work will be commenced on a vast lumber mill
designed to manufacture Canadian timber for the markets of the Orient.
"Naturally, reminiscences
occupied the bulk of the conversation between Mr. Dollar and his old
employer. The former recollected the day when he brought the first saw
logs over the Chaudiere and then tried to run them through the Kettle,
with somewhat disastrous results, for they jammed. and. as Mr. Dollar
remarked, 'We had the very dickens of a time.' After this jam, it was
decided to run the logs through the north slide; Mr. Dollar's narrative
of the incident follows:
"'We let 'em in one by
one, and they went through fine, so well, that I kept shouting, 'Let 'em
come! Faster! Faster!!' And they came—-so fast that we had another jam,
and backed the water right up through biddy's match factory. Then Mr.
Eddy came out and gave me a good cussing. I just told him not to waste
my time talking, if he wanted me to break up the jam. He stopped and sat
down on the bank watching me. Then I got busy, and, after I had finished
the job, he came over to me and said: 'Young man, I gave you an awful
talking to, just now, but after seeing you move those logs, it's up to
me to take my hat off to you. instead of calling you a fool.'
"Though an American
citizen now, Mr. Dollar is an enthusiastic pro-ally. He gave The Journal
a little piece of hitherto unpublished information about the Teuton
attempts, prior to the battle of the Falkland Islands, to secure his
finest steamer, the 'Robert Dollar.'
"The facts of the 'Robert
Dollar's' voyage were these: A few weeks before the battle of the
Falkland Islands, she left an Atlantic port with a full cargo of steam
coal destined for either Manila or Batavia. Her charter, which was
signed by one of Mr. Dollar's sons, provided that the vessel should call
at Pernambuco, South America, for orders. The moment Mr. Dollar read the
charter he surmised there was something wrong, but by that time the ship
was well at sea. and nothing could be done.
"Luckily Captain Morton,
who commanded her, was a staunch Britisher and was also suspicious, so
he lay to off Pernambuco instead of entering the port. A small boat came
off. carrying three Germans who gave him orders to proceed to
Montevideo, off which the German fleet was lying. The Captain flatly
refused to obey the alleged orders, whereupon the Germans offered him
five thousand dollars in gold if he would steer his vessel south. The
result was that three badly mussed up Teutons went down the ship's side
quite a bit faster than they came aboard, and the "Robert Dollar'
steamed off for the China Sea. As Mr. Dollar added. 'The Hun fleet went
hungry for a line cargo of good Welsh coal.' "
From Ottawa we went to
Vancouver. where I addressed the Rotary Club on October 10, at the
Vancouver Hotel.
A Vancouver newspaper's
report of address—
"China presents greater
trade possibilities to British Columbia and to the world than does any
ether portion of the globe, according to Captain Robert Dollar, of the
Dollar Steamship Line, which recently established headquarters in this
city, on account of the United States shipping laws not being so
favorable to shipowners and the shipping business as are the British
laws.
"'When the people of
China increase their purchasing power,' said Captain Dollar yesterday in
an address to the Rotary Club at a luncheon at the Hotel Vancouver,
'there is no telling how large the trade may become. The resources of
China are greater than any of us have any idea. This is the trade you
will have to depend on. The surface of that country has only been
scratched and they have a fourth of the population of the world."
"Captain Dollar went on
to explain what he meant by increasing the purchasing power. He has some
large lumber yards in that country and men work in the yards for eight
cents a day. With these men receiving higher wages, when the wages of
the whole country become increased with the march of time, they will buy
more goods, so there is no telling to what extent the purchasing power
may grow. At present men do the work of horses. Were a horse to be put
to work in the place of so many men, it would release this man-power for
other lines of industry where they could make more money, and they would
buy socks and shoes, for instance, whereas they now go barefooted in
very cold weather.
"The people of Vancouver
should go after this new trade that is bound to come, and can be
obtained with vigorous hustling, according to Captain Dollar, who
advised business men to take off their coats. In the United States they
fully realize the importance of the Chinese trade. One huge company has
already voted six million dollars to dredge the Grand Canal, a waterway
which was built before the Christian era. To develop this business there
must be cooperation among the merchants and the people. 'It is possible
for the people of Canada to make Vancouver the great Canadian port of
the Pacific,' declared Captain Dollar.
"Speaking particularly of
the port of Vancouver, Captain Dollar complimented the officials
connected with the port and the shipping business. He said they made it
easy for the shipowners here. The port charges are reasonable, which is
a great inducement. Some other ports make it as hard as possible for
shipowners, and some persons seem to think the more they charge shipping
the more money will be made, which is not the case, as the people are
made to pay. A tax on a ship is a tax on the whole people, for
shipowners simply put their rates up to meet the increased tax on their
ships. Also, shipowners are like other people—they like to follow the
line of least resistance.
"The owner of a ship
furthermore. Captain Dollar said, is the best drummer for trade. He
sings the praises of his home port, for the more trade it has the better
it is for the owners of ships. Captain Dollar's efforts will be to get
trade here, for, in his own words, 'the most extensive freight is wind
and air.' He wants to keep his ships loaded and he told the club he
would go to every extreme, except stealing, to get cargoes.
"Payroll was the big
thing, in the Captain's opinion, making for final success. 'You have got
to have manufacturing to get the big payroll," he said. Factories are of
more importance than anything else. The raw material could be brought
from foreign ports. He gave for instance: When Irondale, near Port
Townsend, Washington, was started with an iron plant a few years ago,
Captain Dollar made a contract to bring Chinese iron, and he laid it
down at Irondale cheaper than it could be laid down from Pittsburgh. The
company failed, however, owing to poor management.
"Though not speaking at
all in a spirit of criticism, the speaker drew attention to a condition
of the lumber business here. Two weeks ago he shipped two million feet
of lumber to his China yards, using the lumber to complete a cargo of
one of his ships. He had to get this lumber on Puget Sound.
"With reference to the
trade which is coming with Russia, Captain Dollar, who has an office in
Petrograd, said much depended on the attitude of the Russians, who
usually did the wrong thing at the wrong time, according to his
experience. Before the war he received notice that Vladivostok was to be
closed to commercial shipping and be used for war purposes, so
commercial shipping was to use another port, up a river, where
navigation was dangerous as there was a sandbar at the mouth.
Vladivostok is the only Siberian port that can be used. If this port is
not shut up, trade will develop.
"'The board,' said
Captain Dollar, 'gave you here one of the best ports in the world,
without any expense to Vancouver. It is up to the people to develop it
further. The Lord helps those who help themselves," he quoted. 'As to
what I think of this port,' he wenton, 'you can always tell better by
what a man does than by what he says. What have I done? Well, I am
here.'
"As to increasing the
commerce at this port, Captain Dollar said there was a good trade
already, but foreign trade was lacking. Domestic trade, he said, was
like swapping jack-knives, in the end each had a jack-knife, though it
might be the other fellow's; that was all. But foreign trade brought in
gold and was the foundation of a port's prosperity. When the war is over
there will come the greatest commercial war history has ever recorded.
As to the importance of foreign trade—the farmers of the United States
formerly thought it was not essential to their welfare, but since the
war, they have awakened to its importance to the interior as well as to
the seaboard sections.
"Captain Dollar had
noticed that there was an apparent disposition to frame Canadian
shipping laws after those of Amenca which he deprecated, for British
shipping laws have produced a shipping business that is the greatest in
the world."
We returned home the
latter part of October, and on the 17th of November I gave an address at
the Hotel Oakland, Oakland, California, before the Real Estate
Convention. At its close I received quite an ovation.
Address at Oakland,
California—
Those interested in
foreign trade are not only the shipowners, but those in different lines
of business. There is first the farmer. He produces more crops than the
United States can consume, and there is only one way he can sell them
and get the money, and that is by selling to foreign countries.
Therefore, he is intensely interested in it. Mr. Redfield has said, that
if the manufacturers of the United States were to run their plants full
time, in six months they could produce all the United States would
require for a year. Therefore, for six months of the time they have to
sell to foreign countries. The manufacturers are intensely interested.
Next come the bankers,
who are keenly interested, because they have to buy the bills of
exchange for all commodities going to foreign countries.
Then there are the
merchants with establishments in foreign countries, who depend on buying
and selling our products, and they are very much interested.
And last comes the
shipowner. What use are surplus products to you if you haven't ships to
carry them. We are all linked together, and you gentlemen in the real
estate business come in with the rest. Unfortunately those of us who are
engaged in foreign trade necessarily come under the ban of being in "big
business." The foreign trade, of necessity, takes a lot of capital, and
it is big business, and various administrations have attempted to crush
"big business" and put. big business out of business, until lately they
have had their eyes opened, and now you see the persecution of "big
business" has stopped, in-so-far as foreign trade is concerned.
Foreign trade and
commerce, if carried on properly, is only an exchange of commodities.
You gentlemen have things to sell. You send them over to the foreign
country, and if trade is properly conducted, you should buy in that
foreign country as much or nearly as much as you sell. Very nice to have
the balance of it in our favor, and the European war has made us the
biggest creditor in the world.
Just to give you an idea
of how the Chinese look at that— we think that they do not know very
much over there—I was trying to put through a deal with the Chinese
Government by buying iron ore and pig iron from them. We came to a
deadlock and, as they desired to send them off in good humor, they gave
me a banquet. They said they were sorry they could not meet my terms,
but, as I could not come up on my terms, we would have to agree to
disagree. As a parting shot I said, "Remember one thing, gentlemen: up
to the present time I have done many millions of dollars worth of
business with China, and I have yet to take the first dollar of your
money away from you. I have even bought more than I have sold to you."
We were just ready to go into the banquet room, when they said, "Sit
down a moment," and they began to talk. I didn't understand what they
were saying, only every one had something to say. The President of the
Republic finally said to me: "We have been trying to form an answer to
your last remark, and we have utterly failed, so we have now decided to
give you our products at the price you have named because we cannot
afford to do without the exchange of commodities that you are giving
us."
Now, a very important
part, as I have said, is the banking. It may appear rather strange to
you that we had a law in our country that prohibited national banks
having any branches in foreign countries: therefore, we were compelled
to sell our bills of exchange to foreign countries. The Federal Reserve
Act changed the law so that it now permits our banks to have branch
banks in foreign countries. They have been established in South America,
through the National City Bank, of New York. We have had an American
banking institution, but it never went in for this kind of business,
consequently should one of you sell a bill of goods in a foreign country
and you draw jour profits with documents attached, they go through
foreign banks. When I want to draw from China or the Philippine Islands,
coming this way. my bills of exchange are put in the foreign bank and
the bill of exchange tells the whole story; tells the goods and tells
what the prices are, and, as you know, blood is thicker than water, the
information leaks out to our disadvantage. Our Congressmen cannot see
it, however. I talk through personal experience because I, too, have
received tips as to what the other fellow was doing.
Our administration
recently attempted to regulate foreign commerce. I attended the meetings
in Washington, and the argument was this: "We have regulated our
railroads with perfect success, and now we are going to regulate you
fellows that are in the foreign trade, and we are going to tell you what
you are to do, in the same way we have told and do tell the railroads
what they are to do. As a result of telling the railroads, there are
seventy-seven railroads now in the hands of receivers— railroads with
thirty-eight thousand miles of trackage. That is one of the beneficial
effects, coupled with the eight-hour law that has just been passed!
In attempting to regulate
foreign trade, they are going to do it in this way: Any ship asking
clearance in an American port has to get a license, and they are going
to put that into the Ship Purchase Bill. I said to them: "Allow me to
give you a problematical instance of how it will work. We will suppose
that one of my British ships comes into New York engaged to carry a
carload of flour for the British Government. I ask you for a license and
you say, "No; the audacity of these shipping men! Here is a load of
flour for Great Britain, but we will give you a license to earn this
lumber to Montevideo! if you please." What is the British Government
going to say to us? They are starving, the ship is under their flag, and
you tell them that I cannot carry flour to feed their starving people,
but you compel me to carry this cargo of lumber to South America. " That
was the last I heard of it.
Last year Great Britain
passed 239 laws, while our country passed several thousand laws to
regulate us. Don't you think we are being regulated to death? However,
there is one fine thing which has been brought about by the war, and
that is the building of ships on this coast. There is building going on
in the United States, on the Atlantic seaboard, but especially on this
coast. Immense sums of money are being spent here which are going to our
laborers. It is a splendid thing, but the unfortunate part of it is that
seventy-five per cent of these ships up to the present time have sailed
away under a foreign flag. However, we received the benefits from
building them, for which we should be thankful.
Foreign countries aid
their merchants in foreign commerce. It would take too long to tell how
it is done, but they get right out. and in some instances actually
compelled their people to make a combination, so that they could get the
commerce for their own country against other countries. What have we
done? The very reverse. The Sherman Act prevents us from making any
combination of any kind under penalty of going to jail. There is the
difference between the action of our Government and the action of other
governments in trying to simulate foreign trade.
Then we come down to the
Seaman's Bill that was put through two years ago, which, if it had been
enforced, would put fifty per cent of all of our ships out of
commission. We told them that, explained it to them, but it was no use,
the bill became a law.
They started to enforce
it, which caused such a commotion that they let up on some American
ships. Over two hundred American ships had been fined five hundred
dollars apiece for infraction of that law. but strange to say the law
says that all ships asking clearance shall be governed by that law, and
the foreign ships are coming and going in and out of the ports of this
country, and they are never looked at. I have ships coming in which
could not pass the law at all. They haven't looked at them. The law is
not enforced. What do you think of a government making a law and not
enforcing it? There is a law against stealing and murder. What would you
think if they did not enforce it, and let the guilty go free? That is
what is being done with the Seamen's Law. I was foolish enough to think
the law would be enforced, and I could see that it was impracticable to
run ships under that law, so I went to Vancouver. I need not have done
so, as the law is a dead letter. After this European war is over, we are
going to feel it, I am afraid. The administration has admitted that it
cannot put that Seamen's Bill into force, in its entirety. Those bills
were put through for a purpose and probably the purpose has been served
now.
Here is something that
might interest you gentlemen a little bit. We were making this a
terminal for our ships, and our captains, engineers and officers had
their homes here. Twelve families have moved away, mostly from Auckland,
and gone to Vancouver to live. We are spending in Vancouver today
eighty-one thousand dollars a month, which practically all goes to labor.
That is what this Seamen's Bill has done for us.
Now there is another
thing which took place, which our Government was warned of and shown
exactly what would happen; namely, that this bill would turn the
commerce of the Pacific over to the Japanese, because the bill was so
worded that Japanese were exempted from its operation. In 1914,
thirty-three per cent of the tonnage on the Pacific was Japanese,
thirty-nine per cent European and twenty-eight per cent American. Try
and keep those figures in mind. Today seventy-six per cent is Japanese,
twenty per cent European and the great American nation's four per cent.
That is where we have got to, and it is going to remain that way just as
soon as normal times comes back, because it is an absolute
impossibility, with the restrictions imposed upon American shipping, for
us to run ships. A good many people say, "What does it matter who
carries our freight? We get it carried; it doesn't make any difference
to us by whom." I want to tell you this: if our seaport is to become
great, it is going to become great by having shipowners living in the
place. Do you think I would drum up trade for Hamburg or London? Not at
all. My interests were right here, and I was drumming all I could for
this Pacific Coast: and I am continuing it today, but unfortunately it
is on the other side of the Canadian line. Ships are great drummers of
trade. What has made England, on the little island which she owns, such
a power on the sea? Her snipping. I heard an Englishman and an American
arguing, and the Englishman did him up on the argument. "Darn you, I'll
take your little island and sink it in Lake Superior," said the
American, in disgust.
The English had ships
going to all parts of the world and virtually controlled through their
shipping, as we at one time did when we had just as good and as great a
shipping trade as England has, but we frittered away our birthright and
now depend upon the courtesy of the Japanese to carry our goods. Even
our mails are carried by foreign ships. Our Government made an outcry
that the mail had been opened. I say, it served us right; why not carry
our mail on our own ships and not be depending upon other people. Now, a
foreign trade council has been established to try and see if it is not
possible to extend our foreign trade. At the first meeting held in
Washington, some six or seven hundred merchants and bankers from the
United States met there. Mr. Redfield, Secretary of Commerce, out of
courtesy, was asked to say a few words. He came there and said:
"Gentlemen. I am very busy and have very little time. May I be permitted
to say a few words to you at the commencement of this meeting?'- He did.
and sat down, and did not get up. It was about 10 o'clock when we began
and it lasted until 1 o'clock. He was fascinated to see the men there
who were planning to increase our foreign trade. We adjourned to meet at
2 o'clock, he went away and came back at 2 o'clock and said to the
Chairman, "I would like to make a statement. I had no time to wait and
listen this morning but I was so attracted that I stayed until 1 o'clock
and I am back here again. When I went to lunch, I went to lunch at the
White House, and I told Mr. Wilson what was going on, and he asked that
all of you go over there, he wants to take a look at you." He took a
look at us, and there was the commencement of the abandonment of the
persecution of "big business." The chairman said to the President, "I
think you have made a mistake m calling us gentlemen here, because there
isn't a man in this room who is not in big business." The President,
however, could see the handwriting on the wall.
The Webb Bill has been
introduced in Congress, permitting citizens of the United States to form
combinations so that they can go into foreign trade. And that bill is
being pushed energetically by the Foreign Trade Council, I will say
this, however, the Foreign Trade Council does not need the Webb Bill,
because they have connections in foreign countries, but the small
manufacturer and the small merchant cannot go into foreign countries, as
it would not pay them to send their representatives there. This bill is
to permit those small dealers to club together and send their
representatives to foreign countries to increase their trade.
Another outcome of that
meeting was the formation of a company with a capital of several million
dollars, especially to develop foreign trade. We have discovered we
cannot get along without foreign trade. In years gone by when we were
not producing so much, we consumed all we produced and did not need
foreign trade. That day has gone by, and gone by forever. You have read
about a convention held in Paris by the allies—held with the object of
consolidating their various energies—and for what? So that they will be
able to do business within themselves when the war is over, and it is up
to Congress to sit up and take notice and see whether that combination
will not put us practically out of business. That action of the
convention was backed up by governments that are governments. I will say
this for our Government, it has now seen the light, and if it won't help
us fellows on the firing line in foreign trade, I do not think it will
put any obstacles in our way. Something like the sailor going to fight a
battle with a bully aboard a ship. He thought it was a pretty hard job
and thought he would go into the forecastle and pray. He said: "Now,
Lord, I have never asked you anything before, never prayed to you in my
life and will never again, but if you don't help that fellow out there,
you will be surprised how quickly I will do him up." So if our
Government will only leave us fellows alone, you sit up and take notice
and see how quick we will do the other fellow up.
Now just one more thing I
want to ask of you gentlemen. Our Government has tried doing missionary
work in foreign lands, but the missionary work should be done right here
at home, and you, gentlemen, if you see the importance of this thing,
the importance to our merchants, it is necessary for them to go into
foreign lands, to look over the situation and see whether they want the
trade, and if they go into this trade, it should be for keeps.
I want to tell you it
will cost a great deal to get started. They are going to be out of
pocket the first year. For example. I introduced a certain commodity
into China. The first year I lost fifteen hundred dollars; the second
year, one thousand; the third year I got even, and have made money ever
since. It requires grit to go into foreign trade, and the main thing
this nation should do is to get our merchants to go to foreign countries
and develop the trade, because we need it badly now, for, I want to tell
you gentlemen, when our manufactures increase as they have been doing
they will need ships. The nation that has the ships is pretty near boss
of the job. |