The Providence news. (Providence [R.I.]) 1891-1906, 1906-02-10
WALLACE TALKS
ON FREIGHT RATE
. ON PANAMA CANAL

New York Feb 1o-John r Wallace.
former chief engineer OF the isthmian
canal commission. made the following
statement yesterday concerning his testi-
mony before the senate committee on In
fer-oceanic canals, the early part OF this
week:
I'm my examination on matters connect
ed with the Panama railroad and the
steamship line ON Wednesday some Of the
press reports were at considerable vari-
ance with regard TO what actually said
j made the statement that prior 10 my
leaving the isthrlus I'm June last the
through rates from New York 10 San
Francisco by way OF the Panama route
were about 30 per cent. less than the
through trans-continenta rates by ran
from New York 10 San 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 10 the Panama rail-
road 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 ton
mage. the probable fat rate which would
he charged as toll would probably APP
proximate 81 per ton. which was the nat
rate which recommended should be
charged on all goods. regardless OF classl-
fcstioa. to be handled by the railroad
between Colon and Panama.
TWO DOLLARS A TON.
The significance OF this statement lies
fr the fact that a fat charge OF s2 per
ton on all freight without regard 10 classi-
ncation, would give commerce the same
advantage, as far as the freight rate Ia
concerned, as IL would receive by the CON
struction OF the canal unless that rate
was 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 I'm 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 trans-continental lines
could have no motive I'm vigorously delay
ing the construction Of the Panama canal
as the rates by rail- between New York
and San Francisco for freight shipped by
the isthmian route compared TO the
Through trans-contlnental rates by rail- be-
tween New York and San Francisco.
would not he materially DISTURBED
This is a subject on which the public
has not been Informed and on which
there has been no public knowledge as
the existing rate OF the Panama route
was practically concealed fro rnthe public
through the fact that the proportion of
the through rate was credited 10 the
Panama railroad for the transit of goods
between Colon and Panama has never
been made public
II was recommended by me that the
rate be reduced from $3.50 20 s. per ton.
meaning that $3.50 per ton was the rate
now. bad previously recommended
rate OF 25o a ton as the railroads pro-
portion OF the through rate. but I had I'm
my testimony before the senatorial com.
nlittee recommended a still further re-
duction from $50 20 s. per ton on all
freight handled through the isthmus by
the Panama railroad.
Il also called particular attention 20
the fact that this reduction in rates would
greatly benefit and affect all OF the cOun-
tries lying on the west coast OF Central
snd South America Ga the shipments 20
aud from these countries via the isthmian
roste. the rates to-And from these coun-
tries In the past having been exorbiiant
and having been regulated I'm competition
with the longer sailing route around Cape
Horn"