The Bridgeport evening farmer., 1910-12-06

an active competitor in Eae Suez ca nal.
 Then. too, there are other means of crossing the isthmus-by the Tehaun- tepec railroad and by other railroads and freight routes in Central Amerlca Co the Atlantic side.
 In all these cases the question whether the Panama canal is to be used and its tonnage increased will be determined mainly by the charge for it's use. My own impression is that the tolls ought not to exceed $1 per net ton. On Jan. l, 1911, the tolls in the Suez canal are to be francs and 9 centimes for one net ton by Suez canal measurement, which is a modi- fcation of Danube measurement.
 A dollar ton will secure under the figures above gross income from the Panama canal of nearly S7,OO00O0.
 The cost of maintenance and opera ton is estimated to exceed $3,000.000. Ultimately, of course. with the normal increase in trade, the income will ap- proxfmate the interest charges upon the investment.
 On the whole, I should recommend that within certain limits the president be authorized to fix the tolls of the canal and adjust them to what seems to be commercial necessity.
 The inquiries already made of the chief engineer of the canal show that the present consideration of this ques- ton is necessary in order that the com merce of the world may have time to adjust itself to the new conditions re- sulting from the opening of this new highway.
 The next question that arises is as to the maintenance, management and general control of the canal after it's completion. Itshould be promised that it is an essential part of our navy es- tablishment to have the coal, oil and other ship supplies, drydock and re. pair shops conveniently located with reference to naval vessels passing through the canal.
 Now. if the government for naval purposes Is to undertake to furnish these conveniences to the navy, and they are conveniences equally required by commercial vessels, there would seem to be strong reasons why the gov ernment should take over and include in it's management the furnishing not only to the navy, but to the public, dry dock and repair shop facilities and the sale of coal, oil and other ship sup plies. @
 The maintenance of lock canal of this enormous size in a sparsely popu- lated country and in the tropics, where the danger from disease is always pres ent, requires large and complete and we'll trained organization with full po- lice powers exercising the utmost care. The visitor to the canal who is inn pressed with the wonderful freedom from tropical diseases on the isthmus must not be misled as to the constant vigilance that is needed 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 the equipment of the railway will all require force, not. of course, to be likened in any way to the present organization for construction, but a skilled body of men who can keep in state of usefulness this great instrument of commerce.
 Such an organization makes it easy to include within its functions the fur nishing of drydock, fuel, repairs and supply facilities to the trade of the world. These will be more essential at the isthmus of Panama than they are at Port Said or Suez, because there are no depots for coal, supplies and other commercial necessities within thousands of miles of the isthmus. Another important reason why these ancillary duties may well be under taken by the government is the oppor. tunity for discrimination between pa. irons of the canal that is offered where private concessions are granted for the furnishing of these facilities. Nothing would create greater prejudice against the canal than the suspicion that cer- tain lines of traffic were favored in the furnishing of supplies or that the sup plies were controlled by any large in- terest that might have a motive for increasing the. cost of the use of the canal.
 cannot close ttis reference 50 the canal without suggesting as wise amendment to the interstate commerce law a provision prohibiting interstate commerce railroads from owning or controlling ships engaged in the trade through the Panama canal l believe such a provision may be needed to save to the people of the United States the benefits of the competition in trade between the eastern and western sea- boards which this canal was construct ed to secure.
 DEPkRTMENT OF JUSTICE