Daily Kennebec journal., 1906-02-10
THE PANAMA CANAL,
Gov. Magoon Explains Conditions
on lsthmus---Wallace Has An
other List of Corrections.
WALLAcE's CORRECTIONS.

New York, Feb. 9.-John F. Wallace,
forme: chief engineer of the isthmian
| canal commission, made the following
statement today concerning his testi-
nony before the Senate committee on
inter-cceanic canals, the early part of
this week:
I'm my examination on matter con-
| nected with the Panama Railroad and
steamship lines on Wednesday, some
| of the press reports We're at considera-
BILE variance with regard to what 1 ac-
| tually said.
Il made the statement that prior to
by leaving the isthmus in June last,
| the through rates from New York to
SaE Francisco by the way Of the Pan
anna route We're about 80 per cent. less
than the through trans-continental
| rates by rail. from New York to San
i Francisco. The press had these figures
reversed.
Il 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 S2 per ton and that as the
| rate through the SueZ Canal was $1.70
per ION on the gross tonnage, the prob
able fiat rate which would be charged
| as toll would probably approximate 81
per ton, which was the fiat rate which
| l recommended should be charged on
all goods. regardless of classification, to
be handled by the railroad between
Colon and Panama.
THE significance of this statement
! lies in the fact that Il fiat charge of 50
per ton on all freight, without regard
to classification. would give commerce
the same advantage, as far as the
freight rate is concerned. as it would
receive by the construction of the ca
nal unless that rate We're made lower
than the rate at present charged for
the transit Of freight through the Suez
by 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 trans-continental
lines could have no motive in vigorous
ly 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-con:i-
mental rates by rail between New York
and San Francisco would not be mate
rally disturbed.
"This is a subject on which the pub
lie has not heen informed and on which
| there has been no public knowledge. as
the existing rate of the Panama route
was practically concealed from the pub
lic through the fact that the proper
| tion of the through rate credited to the
Panama Railroad for the transit Of
goods between Colon and Panama has
never been made public.
at was recommended by me that the
rate he reduced from $3.50 to 81 per ton.
meaning that $3.50 per ton was the rate
now. l had previously recommended
rate of $3.50 a ton as the railroads
proportion Of the through rate but
had in my testimony before the sena-
tor!al committee recommended a still
further reduction from $3.50 to 50 per
ton on all freight handled through the
isthmus by the Panama Railroad
Il also called particular attention to
the fact that this reduction in rates
would greatly benefit and affect all Of
the countries lying on the west coast Of
Central and South America in the ship
n.ents to and from these countries via
the isthmian route, the rates to and
from these countries in the past hay-
ing been exorbitant and having been
regulated in competition with the lon
ger sailing route around Cape Horn.
"Tfe point I desire to make clear in
this entire matter is that the fiat 81
rate across the isthmus Of Panama
could be Immediately put into effect by
the United States government and
would anticipate. so 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 equivalent to four cents per
ton per mile and is perfectly ample for
the services rendered) will be the
equipment of the Panama Railroad
with modern engines and cars. proper
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