Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-12-06

some time, perhaps two years, to read
just trade with reference to the new con-
ditfons which the canal would establish.
He did not includes moreover, the ton
inferred that such vessels would make
considerable use of the canal. In the
matter of tolls he reached the conclusion
! that dollar net ton would not drive
| higher rate would do so.
In determining what the tolls should be
we certainly ought not to insist that for
| a good many years to come they should
the investment of $4oO,OOO,oOO which the
United States has made In the construe-
ton of the canal We ought not to do
this, first. because the benefits to be de-
rived by the United States from this ex-
penditure is not to be measured solely by
| return upon the investment. II 1t were
then the construction might well have
been left to private enterprise. It was
because an adequate return upon the
money Invested could not be expected Inn
mediately. or In the near future, and be-
cause there were peculiar political adj
vantages to be derived from the constitute
ton of the canal that it necessarily fell
to the government to advance the money
and perform the work.
BENEFIT to Trade.
In addition to the benefit to our naval
strength, the canal greatly increases the
trade facilities Of the United States 1t
will undoubtedly cheaper the rates of
transportation in all freight between the
eastern and western seaboard, and It will
greatly increase that trade by reason OF
the reduction in its cost. Then, If we are
to have world canal, and If we are
anxious that the routes of the world s
trade shall be through the Panama canal,
we must recognize that we have an ac-
tive competitor In the Suez canal. Then,
too, there are other means Of crossing the
fsthmus-by the Tehuantepec railroad and
by other railroads and freight routes In
Central America to the Atlantic side.
Should Not Exceed 81 Per Ton.
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
Its use. Ny own impression Is that
the tolls ought not to exceed 81 per
net ton. On January 1. 1911, the tolls
In the Suez canal are to be Z francs
and 20 confines for. one net ton by
Suez canal measurement, which Is a
modification OF Danube measurement
dollar ton will secure under the
figures above gross income from the
Panama canal OF nearly $1,000, 900. The
cost of maintenance and operation il
estimated to exceed 100000. Ulti-
mately, OF course, with the normal In
crease in trade. the income Will ap-
proximate the interest charges upon
the investment. On the whole / 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 neces-
stty. The Inquiries already made Of
the chief engineer OF the canal show
that the present consideration of this
I T. -
commerce of the. world may have time
to adjust itself to the new conditions
resulting from the opening OF this new
highway.
Control and Management.
The next question that arises is as to
the maintenance, management and gen.
eral control of the canal after its COM
pletion. 1t should be promised that it
Is an essential part OF our navy es-
tablishment to have the coal. Oil and
other ship supplies, q dry dock and re-
pair shops. conveniently located with
through the canal. Now, If the gov
eminent, for naval purposes, Is to un-
dertake to furnish these conveniences
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 Its manage
ment 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 supplies.
The maintenance of lock canal of
this enormous size in sparsely popu-
lated country and In the tropics, where
the danger from disease is always
and well trained organization with
full police powers. exercising the ut
most care. The visitor to the canal
who Is impressed with the wonderful
freedom from tropical diseases on the
isthnus must not be misled as to the
constant vigilance that Is needed to
preserve this condition. The vast ma
chinery 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-win all
require a force, not, OF course, to be
likened in any way to the present or
ganization for construction, but a
= state of usefulness this great instru-
ment of commerce. Such an organiza-
ton makes 1t easy to include within
it's functions the furnishing OF dry
dock, fuel. repairs and supply facilf-
ties to the trade of the world. These
will be moro essential at the Isthmus
ii Panama than they are at Port Said
n Suez, because there are no depots
for coal, supplies and other c0mmerclal
necessities within thousands or miles
Of the isthmus.
Avoid Appearance Of Discrimination.
Another important reason why these
ancillary duties may we'll be undertaken
by the government is the opportunity for
discrimination between patrons OF the
canal that is offered where private con-
cessions are granted for the furnishing Of
these facilities. Nothing would create
greater prejudice against the canal than
the suspicion that certain lines OF tramc
were favored in the furnishing of sup
plies or that the supplies were controlled
by any large interest that might have
q motive for increasing the cost Of the
use Of the canal. It may be added that
the termini are not ample enough to per-
NIT the fullest competition in respect to
the furnishing Of these facilities and ne
cessities to the world trade even II 1t
the granting OF the concession would
necessarily. under these circumstances,
take on the appearance OF privilege or
monopoly.
I cannot close this reference to the
canal without suggesting as a wise
amendment to the interstate commerce
law q provision prohibiting interstate
commerce railroads from owning or con-
trolling ships engaged in the trade
through the Panama canal. believe
such a provision may be needed to save
to the people Of the United States the
benefits Of the competition in trade be-
which this canal was constructed to Sc