The Montgomery advertiser., 1904-12-11


 they have come to the conclusion that 1t will he worse than folly for the United States to pay cash for canal | which is as a matter of course lntend- ed for the use and benefit or the worio at large. It is assumed therefore | and this view probably will be adopt ed by congress that all the work or I actual construction of the canal should constitute a debt raised Tn the name
 of the United States. but paid. 1T II IS ever cancelled at all, out ot the fe' enues of the canal.
 | Canal to Pay for Itself.
 l. Experience has shown, It is said. that | great waterways can be made profi- table It is asserted by those who l have studied the situation that iair | shipping tax on the commerce passing through the Panama canal will produce | a sufficient revenue to pay the inter- est on the bonds and also to establish small sinking fund looking toward the extin guishment of the debt at some time in the not too remote future. Two or three leaders in congress who have been giving great deal of study to the subject say that as matter of self-protection distinct canal debt should be created. Otherwise they feel there should be demand for the abolition of tolls through the canal. and thus the United States be put in the awkward position of refus- ing to make the canal free, although it was all paid for in adavnce.
 The theory which will be advocated in congress is that a separate canal trust fund or trust debt should be cre- ated which would in clude the cost of the canal, the $40.000, 900 paid to the Panama Canal company, and the $10,- 000, ,00o paid to the republic of Panama as a bonus for the right of way. Something of this kind will almost certainly be done and an attempt will be made to keep a general running canal, including the right of way and the cost of construction, so that the tonnage tax to be levied on vessels passing through the waterway can be continued in operation just so long as
 there is a financical burden being
 bourne by the United States. When
 the debt is wiped out it Is considered 1t will be time enough to talk of an abolition of tolls, but not before. Want Sea Level Canal.
 Although congress has appropriated directly only s130, 0,O0O,O0O for the con- struction Of the canal. it Is well un- derstood that 1t will require a good deal | more even If the sea level plan Is not adopted. If it were merely a question of money, the disposition in congress would be to order a sea level canal at once. If the engineers report in fav-
 or of such a canal congress will adopt it without hesitation. Members of both houses are willing to wait reas- enable number of years for such an ex-
 tension of the original plan of the can al, but they do not like to think of waiting twenty years for sea level ditch, whereas a satisfactory ship canal with locks probably could be construct ed in half that time
 There is an understanding now that the line can be laid out on the gen eral plan adopted by the French com pany and that the work can progress for two or three years on the theory
 that locked canal is to be construct ed. At the end of that time it is said, the engineers would be able to determ- inc the magnitude of the work and the seriousness of the problems to be solv ed. It would not be too late then, and, in fact 1t is said that it would be the best time to begin work on a sea level basis if that should seem feasi- ble.
 Will Abrogate Railroad Contract.
 As preliminary to actual work on the canal the commission has recom- mended and the president has decided that the old contract between the Pana- ma railroad and the Pacific Mail Steam ship company should be cancelled Un- der that contract the Pacific Mail com pany was given a monopoly of the steamship carrying trade in connee- tion with the railroad and practically 1t controlled the business at each end. The steamship petition and the Pana- ma railroad will be adapted as gor- ernment line. largely devoted to the construction of the canal, but receiving commercial business on an equitable basis and without discrimination.
 Preliminary Work Mapped Out.
 It may take the commission a year or longer to get the necessary data for the beginning of actual work on the canal In the meantime. however, a. great deal of preliminary work can be done. Some of the mistakes of the French engineers can be rectified, bar racks can be erected for the workmen, modern digging machinery can be sent to the isthmus, and a great deal of la Dor performed of character which will expedite the actual work when the commission has finished its plans.
 For all this preliminary work, as well IS for the policing and sanitation of the canal itself, large amount of money will be needed, by the perjodi- cal sales of United States 2 per cent registered and coupon bonds, redeema- ble after ten years. and payable in thirty years from date of issue. These bonds will be of the ordinary federal character, but the law authorizing their use provides they must be issued under popular subscription, so every ono with fayy hnndre,J doI1arS