this extent at least the subsidy law was
declared to have been beneficent.

It had become evident, however, that the law was not fostering the
establishment of new American-owned and American-built steamship lines
as its promoters had hoped. In 1893 the contract service had been
reduced by the discontinuance of three of the routes. In 1894 only three
contracts were in operation. Up to 1898 no lines had been established on
the Pacific under the law.

In the judgment of the subsidy advocates the law's failure to produce
the anticipated results only proved its inadequacy in not providing
enough subsidy. Accordingly, further measures were proposed affording a
more generous supply.

In December, 1898, Senator Mark Hanna, of Ohio, brought forward a bill
providing liberal navigation and speed bounties to all American vessels
engaged in the foreign trade. This measure, as defined by its title,
proposed "to promote the commerce and increase the foreign trade of the
United States, and to promote auxiliary cruisers, transports, and seamen
for Government use when necessary." The subsidy was again termed
"compensation." It was to be payable on gross tonnage for mileage sailed
both outward and homeward bound, according to speed. The rate to
steamships showing on trial test a speed above fourteen knots was to
increase proportionately; sailing-ships and steamers of less trial speed
than fourteen knots, were to receive the lowest rate. This was fixed at
one dollar and fifteen cents per gross ton for each hundred of the
first fifteen hundred miles sailed both outward and homeward bound, and
one cent per gross ton for each hundred miles over one hundred miles
both ways. The additional speed bounties ranged from one cent per gross
ton for steamers of 1,500 tons and speeding fourteen knots, to 3.2 cents
for those over 10,000 tons and showing twenty-three knots. The act was
to be in force for a term of twenty years, and no contracts were to be
made under it after ten years.

The Hanna bill met strong opposition, and was finally dropped. A
substitute measure, drawn by Senator Frye, of Maine, took its place.
This also was lost with the adjournment of the Fifty-seventh Congress.
At the opening of the next Congress, in December, 1901, Senator Frye
introduced his bill in an amended form. This offered subsidies to
contract mail-steamships based upon tonnage and speed, and practically
restored the rates of the original Postal Aid Bill. It furth