The Birmingham age-herald., 1910-12-07

In determining what the tolls should
 be we certainly ought not to insist
 that for good many years to come they should amount to enongh to pay
 the interest on the investment of $400,- OOO,0lo which the United States has
 made in the construction of the canal. l We ought not to do this first, because 1 the benefits to be derived by the United
 States from this expenditure is not to | be measured solely by a return upon
 the investment. If it were then the
 construction might well have been left
 to private enterprise. It was because | m adequate return upon the money
 invested could not be expected imme-
 d1ately, or in the near future, and be- cause there were peculiar political ad- l vantages to be derived from the con- structlon Of the canal that it necessar- fly fell to the government to advance the money and perform the work.
 In addition to the benefit to our naval strength, the canal greatly in creases the trade facilities fthe Uni ted States. It will undoubtedly cheap- en the rates of transportation in all frieght between the eastern and west ern seaboard. and it will greatly in crease that trade by reason of the re- auction in Its cost Then. if we are to have world canal, and if We are anx- ious that the routes of the worlds trade shall be through the Panama canal, we must recognize that we have an active competitor In the Suez canal | Then, too, there are other means Of crossing the isthmus-by the Tehuan- tepec railroad and by other railroads
 and freight routes in Central America
 to the Atlantic side.
 In all these cases the question wheth- CT the Panama canal Is to be used and l its tonnage increased will be deter | mined mainly by the charge for It's
 use. My own impression is that the tolls ought not to exceed S1 per net ton. On January 1. 1911, the tolls in
 the Suez canal are to be ' francs and
 20 centimes for one net ton by Suez ! canal measurement, which is modifi- cation of Danube measurement A dol
 lar ton will secure under the figures
 above a gross income from the Panama
 canal of nearly $7,000,0 900. The cost of
 maintenance and operation is es-
 timated to exceed s3,O00, 900. Ultimate
 ly, or course, with the normal increase
 In trade. the income will approximaia
 the interest charges upon the invest
 ment On the whole I should recom
 mend that within certain limits tba
 President be authorized to fix the tolls or the canal and adjust uem to wh1t 1 seems 10 be commercial necessity. The | inquiries already made of the chief an gfneer of the canal show that the nrae ent consideration of this question ts
 necessary fin order that the commerce
 or the world may have time to adiust
 ltself to the new conditions resulting
 rom the opening of this new high way.
 The next question that arises is ss Ia 1 the maintenance, management and pen l eral control of the canal after if sco,nnle l tlon. It should be promised that if ia an essential part of our navy establishment 10 nave the coal, oil and other ship sup-
 plies, dry dock, and repair shops con | wit,
 vessels passing through the canal Now. I II the government, for naval purposes. is l to undertake to furnish these conyen- | fences to the navy. and they are conven-
 fences equally required by commercial vessels. there would seem to be strong reasons why the government should take over and include in it's management tho furnishing, not only to the navy but to the public ory-dock and repair-shop fa- cilitles, and the sale of coal, oil and other ship supplies.
 The maini ienance of a lock canal of this enormous size in sparselv nonulatad country and in the tropics where tha danger from disease is always present requires large and complete and we'll | trained organization with full police DOW CTS, exercising the utmost care. The yisi- tor 10 the canal who is impressed with the wonderful freedom from tropical dis eases on the fsthmus must not be rnisled | as to the constant vigilance that Is need | ed to preserve this condition. The vast
 machinery of the locks, the necessary amount of dredging. the preservation of | the banks of the canal from slides the operation and the maintenance of tho | equipment of the railway-will all require | force, not, of course, to be likened in any way to the preesnt organization for construction, but skilled body of men
 who can keep in a state of usefulness this great instrument of commerce. Such an | of ganization makes it easy to include within it's functions the furnishing of dry | dock. fuel repairs and supply facilities | to tho trade of the world. These will be more essential at the isthmus of Panama | than they are at Port Said or Suez be- cause there are no depots for coal sup l pies, and other commercial necessities within thousands of miles of the isthmus | Another important reason why these ancilary duties may well be undertaken l by the government is the opportunity for discrimination between patrons of the cann that Is offered where private con | sessions are granted for the furnishing of these facilities. Nothing would create | greater prejudice against the canal than the suspicion that certain lines of traffic were favored in the furnishing of sup plies or that the supplies were controlled | by any large interest that might have a | motive for increasing the cost of the use of tho canal. It may be added that the | termini arc not ample enough to permit | the fullest competition In respect to the | furnishing of these facilities and necessi- ties to the worlds trade, even If it were | wise to invite such competition and the granting of the concession would neces-
 sarily, under these circumstances. take on the appearance of privilege or mon | opoy.
 | I cannot close this reference to the ca- nal without suggesting as wise amend- mert to the interstate commerce law provision prohibiting interstate commerce | ra ilroads from owning controlling ShipS l engaged in the trade through the Panama canal I believe such provision may be | needed to save to the people of the United States the benefits of the competition in 1 trade between the eastern and western
 
 lC0NTINIIErn QN P PAG GE 1AN