The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-10
TRYING TO MAKE
MEANING CLEAR
Former Chief Engineer Wallace Elk
plains His Testimony Before
Senate Committee.
RATES ON PANAMA ROAD
CANAL TOLL WILL NOT BE ANY
CHEAPER.

New York, Feb. 9.-John F. Wallace,
former chief engineer Of the isthmian
canal commission, made the following
statement today concerning his testi-
mony before the senate committee on
interoceanic canals the early part of
this week:
MY examination on matters connect
ed with the Panama railroad and
steamship line on Wednesday in some
of the press reports were at consider
able variance with regard to what [ dc-
tually said
IT made the statement that prior to
leaving the isthmus, in June last, the
through rates from New York to San
Francisco by way of the Panama route
were about 80 per cent less than the
through transcontinental rates by rail
from New York to San Francisco. The
press had these figures reversed.
Two-DoIIar Rate.
81 also made the statement that that
part of the through rate from New
York to San Francisco by way of the
isthmus, which was credited to the
Panama railroad line for the transit II
goods between Colon and Panama, W is
about 81 per ton, and that as the rate
through the Suez canal was $40 per
ton on the gross tonnage, the probable
fat rate which will be charged as toll
would probably approximate 81 per ton,
which was the fat rate which recon-
mended should be charged on all goods,
regardless of classification, to be ham
died by the railroad between Colon and
Panama
1.-The significance Of this statement
lies in the fact that fiat rate charge
of 81 per ton on all freight without re-
gard to classification would give COM
merce the same advantage, as far as
the freight rate is concerned, as 1t
would receive by the construction of the
canal unless that rate were made lower
than the rate at present charged for
the transit of freight through the Suez
canal, and that this could not make
any disturbance in the through trans
continental rates which now exist, by
rail between New York and San Fran
cisco; the essence of this statement be-
ing that the through transcontinental
| lines could have no motive in vigorous
~ delaying the construction OF the
Panama canal as the rates by rail be-
tween New York and San Francisco
| for freight shipped by the isthmian
route, compared to the through trans
continental rates by rail between New
| York and San Francisco would not be
materially disturbed.
Public Not Informed.
This is q subject on which the pub
| lie has not been informed, and on which
| there has been no public knowledge, as
| the existing rate of the Panama route
was practically concealed from the pub
| lie through the fact that the proportion
/ of the through rate credited to the
| Panama railroad for transit of goods
| between Colon and Panama has never
! been made public
THE point 1 desire to make clear IN
| this entire matter is that the fiat 81 rate
! across the isthmus could be immediate
| ly put into effect by the United States
| government, and would anticipate, as
! far as rates are concerned, the ultimate
| benefit due to the construction of the
| canal and that all that was necessary
| to do in order to enable the Panama
/ railroad to handle freight across the
isthmus by this route (Which is equiva-
lent to cents per ton per mile and is
perfectly ample for the service rem
| dered), would be the equipment Of the
Panama railroad with modern engines
and cars proper tTackage, WharVeS
docks and warehouses, which can be
furnished for less than S., 600, 0O0-an eX-
penditure which will have to be made
| i'm any case, IL order to properly pro-
vide transportation facilities for the
traffic which now exists and for that
going out for the construction of the
canal"