Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-02-10
PANAMA ROUTE
MUCH CHEAPER.
Thirty Per Cent Less Than Trans
continental Rate From New
York to San Francisco.
so DECLARES JOHN WALLACE.
II Properly Equipped. Panama Rail-
way Can Easily Handle Freight
Across Isthmus.

New York, Feb 9.--John +. Wallace,
former chief engineer OF the isthmian
canal commission. made the following
statement today concerning his testi
mony before the senate committee on
interoctanic canals the early part OF
this week
In my examination OF matters coll
nected with the Panama railroad and
steamship line on Wednesday, some Of
the press reports were at considerable
Variance win regard to what actual
ly said
Il 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 10 San Francisco The
press had these figures reversed
II 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 OF
goods between Colon and Panama, was
about 81 per ton, and that as the rate
through the Suez canal was $40 per
ton on the gross tonnage, the probable
nat rate which will be charged as toll
would PROBABLY approximate So per ton,
which was the fiat rate which recom-
mended should be charged on all goods,
regardless OF classification, 20 he hand
led by the railroad between Colon and
Panama.
THE Significance Of this statement
lies In the fact that Hat charge OF 81
per ton on all freight without regard
to classification would give commerce
the same advantage. as far as freight
rate Is ooncerned as II would receive
by the construction of the canal, UNI
less that rate were made lower than
the rate at present charged for the
transit OF freight through the Suez
canal, and that this would 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
being that the through transcontlnental
lines could have no motive I'm vigor-
ously delaying the construction of the
Panama canal. as the rates by rail
between New York and San Francis
co 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.
This Is subject on whcih 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 public through the fact that the
proportion or the through rate credited
to the Panama railroad for transit
of goods between Colon and Panama
has never been made public
1.-THE point | desire to make clear III
this entire matter Is that the fiat 50
rate across the isthmus could be imme-
diately put into effect by the United
states government and would antlci-
pate, as far az rates are concerned,
the ultimate benefit due to the con-
structlon of the canal
"All that Is necessary to do In order
TO enable the Panama railroad to ham
die freight across the isthmus by this
route, which is equivalent to cents
per ton per mile and Is perfectly ample
for the service rendered. would be the
equipment OF the Panama railroad with
modern engines and ears, proper track
age, whraves. docks and warehouses.
which can be furnished for less than
$4,000, 000--an expenditure which viii
have TO be made, IN any case. In order
TO properly provide transportation ia
cilitles for the traffic which now ex-
lists and for that growing out for the
construction OF the canal"