The Montgomery advertiser., 1906-02-10
WALLACE STILL EXPLAINING.
Makes Clearer His Testimony Before
 Canal Committee.

Canal Committee.
 New York, Feb. 9.--John F. Wallace, formerly Chief Engineer of the Isth- milan Canal Commission. made the fol- lowing statement today concerning his testimony before the Senate Commit tee of Inter-Oceanic Canals the early part of this week.
 Tn my examination on matters con nected with the Panama Railroad and Steamship Line Wednesday, some of the press representatives were at consid- erable variance with regard to what actually said:
 T made the statement that prior to my leaving the isthmus in<June last, the through rates from New York to San Francisco by the way of the Pan- anna route were about 80 per cent less than the through transcontinental rate by rail from New York to San Fran cisco. The press had these figures re- Versed.
 q also made the statement that the part of the through rate from New York to San Francisco by the way Of the isthmus which was credited to the Panama railroad line for the through transit of goods between Colon and Panama was about g per ton, and that as the rate through the Suez Canal was $1,2O per ton on the gross ton mage, the probable flat rate which would be charged as toll would prob ably approximate g per ton, which was the flat rate which recommended should be charged on all goods regard less of classification to be handled by the railroad between Colon and Pan- anna.
 ..The significaance of this statement lies in the fact that a flat charge of $2 per ton on all freight, without regard to classification, would give commerce 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 his could not make any disturbance in the through transconti- mental rates which now exist by rail between New York and San Francisco.
 q also called particular attention to the fact that this flat rate would great ly benefit and affect all of the countries lying on the west coast of Central and South America in the shipments to and from those countries via the isthmian route. the rates to and from these coun- tries fin the past having been exorbitant and having been regulated in competi- tion with the longer sailing route l around Cape Horn.
 ',rhe point I desire to make clear in this entire matter is that the flat $2 rate across the isthmus of Panama could be immediately put into effect by the United States Government and would anticipate. as far as rates are concerned. the ultimate benefit due to the construmtion of the canal, and that all that was necessary to Ndo in order to enable the Panama Railroad to han de freight across the isthmus by this route (which Is equivalent to cents per ton per mile and Is perfectly ample for the service rendered) will be the equipment of the Panama Railroad with modern engines and cars. proper trackage, wharves, docks and ware houses, which can be furnished for less than $5,O0O, 900, an expenditure which will have to be made in any case, In order to properly provide transporta- tion facilities for the traffic"