The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1906-02-10
DOUBTS BIG SHIPS
WOULD USE CANAL
Cheapert0T Transfer CargOes,
Wallace Says.
RAILROAD NEEDED ADJUNCT
Engineer Thinks Half of Freight Would
Thus Cross Isthmus, Small Boats
Carrying the Rest.

The Senate Committee on Interoceanic
Canals has been astounded at the mul-
tiplied phases in which the Panama
canal will affect commerce and indus
try. and the multiplicity OF problems
involved in canal affairs. John Finley
Wallace. former chief engineer. has been
telling of these for several days. He
has apparently had nothing TO conceal.
and much to tell that nobody else has
told. He has laid before the committee
new problems and puzzles and difficult
ties never thought OF.
Mr.. Wallace said the commission
ought to build. with as little delay as
possible. a dOuble-track railroad of the
best modern construction and equip
ment across the isthmus. and ought to
construct It with view to adding. be-
fore long q third and a fourth track
For. he explained. the railroad instead
OF being out Of business whom the canal
is completed. will then Just be getting
ready for its great future.
Can't Do Without Cars.
The canal will draw the freight from
all over the world 20 the isthmus. after
it gets there. the railroad will haul
,~1much Of it across. And it will be i'm
possible to avoid this situation if the
isthmian route Is TO be encouraged and
made the most of.
The rates through all canals" ex-
planned Mr.. Wallace. are on gross tom
mage. Colon and Panama will be dis
tributinE points for vessels up and
down the coast. on the Atlantic and
Pacific sides. 1t viii not be economical
for a big steamer to go from New York.
pass through the canal. and distribute
her cargo up and down the west coast
of South. Central and North America.
IT viii be cheaper 10 take a fun cargo
10 Colon, the port at the Atlantic ter
minus of the canal. unload II. take on
another full cargo. and return 10 New
York Then the freight which was sent
10 Colon in that ship viii be divided
uD; part viii be taken across the 18th,
mus by rail. if YOU make a reasonable
rate for il. and taken from Panama bv
small boats TO it's destination: some or
1t Will be taken directly at Colon into
small boats, through the canal. and to
the destination on the Pacific side This
viii be cheaper because to nav tolls for
a big ship through the canal IN order
To make distributing trip to ports IN
ana down the other coast. would not be
profitable.
Too Costly for Big Vessels.
The big ship can't prohtably dis
tribute her cargo among a number of
ports: she must turn il over 10 small
ships az some, distributing point. and
the canal ports viii become those points
If the big ship went through the canal
on this distributing voyage, she would
have to Day tolls both ways. and she
might have 20 come back with little
cargo; Vet the tolls would be based on
gross tonnage. which would be very ex-
pensive even If she had not a ton of
cargo
Mr. Wallace said It would be possible
10 make the Panama road mere trans
Ter road, with a fiat charge for ali
freight without regard to ClassifiCation
OF say two dollars per ton. This vvot1ld
ne prohtable, and it would attract to
the lsthmus certainly half as much com
Tnerce, even If there were no canal as
would be drawn there by the canal.
Mexican Competition Serious.
Mr.. Wallace was asked If he recog-
nized how serious factor the Tehuante-
pee railroad across the Mexican fsthnnus
is destined to be in competition win
the Panama canal and railroad. He re-
Piled that he did. and that If common
sense business methods were not soon
applied TO the management of the Pan
ANA railroad II would presently lose al
Its business. If the Panama route were
10 compete successfully in the long run
with the Tehuantepec route. il would
have to afford equally desirable faeiIi-
ties; and the privilege Of breaking bulk
and distributing from terminals at both
Iermlnis and OF using a railroad line
when more economical, was one of the
1acliitle5 that would be found necessary.
Mr, wallace has no doubts about the
business mat VIII go to the isthmus
but he insists that the practical methods
or handling II VIII be many years de-
veloping; that small ships win distrfbUfa
the cargoes of MANY big ships; that the
railroad VIII handle, very likely hair
the freight that viii cross the isthnus
even after the canal is finished. and
that rates by the isthmus, if the route
there Is to compete for world trade with
the Suez route, will necessarily be So
low as greatly TO affect transcontinental
rates in this country
II they are not made low enough
greatly 70 reduce transcontinental rates
then Suez viii continue TO do the hush
ness. Competition with Tehuantepae
with SueZ, and with the Panama rail-
road. must De counted on in all the
phases.