Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-12-10


greatest practical usefulness TO the
United states, should be free to the
shipping and commerce not only of
the United States, but Of the world.
Legislation 10 this effect by Con-
gress at It's approaching session,
would Insure the Immediate complete
and permanent success of this water
way as new route Of international
and national commerce. II would in
augurate, upon the day following its
approval, the greatest activity In
preparation for the canal the world
has known in the history of shipping
and commerce. II would end al once
all doubts and discussions as to tolls
and the grave problems OF preferen-
tial treatment Of the American ves-
sells, as they affect our treaty obliga-
tions to other countries.
If the United States would exper-
ence the largest benefits possible to
its foreign commerce from the Pan
anna Canal, II will make this inter
oceanic waterway as free TO the ships
Of all nations as are the two oceans
which II connects. The only valid
reasons for charging tolls are, first,
TO pay the cost, of operating the ca
nal and interest on investment, and,
secondly, to protect the transconti-
mental railways from the competition
OF free canal.
of free canal. If, then, correspond
ing and compensating advantages in
each case will result from a free ca
nal, il should be made free. The In
crease OF the trade Of the United
States through a free canal VIII be
so much greater than that through
toll canal that this increase In the
first year would equal the revenue
from tolls for five years, while in
ten years the increase resulting from
a free canal over that of toll ca
nal would pay nearly twice over the
original cost of the canal.
The basis for tolls will be the cost
OF operation plus interest on the IN
vestment. The official estimate OF
annual cost Of operation Is $1,000
OO0. Interest on the outside approx
innate cost of the canal, $400,OOO,OO,
at as low rate as three per cent
would be $12,00,000. Tolls should
therefore bring in an annual income
of $15,000,000. Upon conservative
estimate Of trade experts, the actual
traffic in 1915 will aggregate TO-
O00, 600 tons. which means that every
vessel must pay $3.50 per net ton
for each passage. OH an average
measurement of 5000 tons per trip,
which in turn must be added to the
cost Of freight and is ultimately paid
by the consumer. That this S4,5OO
tax on a 5000 ton steamer engaged
in commerce may be serious bur
den is realized from the fact that
the sum would probably pay, In the
case of the average low speed freight
carrier, the entire wages of the cap
tain and crew for the trip that the
total of different payments for such
trips in a year through the canaf
would be equal to the legitimate in
come of the investment represented
by the ship, and this amount paid out
vent the vessel continuing to engage
in the commerce of the canal.
A free canal. at conservative es-
innate, based on the data of trade eX-
perts, will carry In the fiscal year
$4,000, 900 more of the products OIL
the United States than toll canal,
an amount equal to receipts of tolls
required to cover operation and in
terest for five years. At this rate
for ten years, without even counting
the natural growth from year to year
the increase for that period Will pay
for the entire original cost of the
canal and liberal interest on the in
vestment, or s75O,0OO, 900. Stated an
other way, will the United States de-
liberately throw away an opportun-
ity 10 increase the sale Of its pro-
duets s75O,0O0, 900 in ten years in
order to save s75,000,000 in tolls?
An annual appropriation Of 49,
100000 to operate the canal is a
small sum compared to the entire
annual budget Of 100000 OF
the United States for the mainten-
ance OF the government, but direct
annual tax of s15,O00,00 on ships
and tonnage means a loss of $75,-
10000 and more, each year, for the
commerce of the United States.
One underlying and important
truth must be admitted by every
body: The United states is not con-
structng the canal to gain revenues
from the tolls on traffic. 1t is build
ing for commercial and strategic
reasons: commercial. to provide
new and short sea trade route be-
tween the Atlantic and Pacific, stra-
tegic, to be able to protect readily
and effectively with Its navy. In case
of war, real or threatened. both At
lantic and Pacific. Tolls have nothing
TO do with the strategic phase; all
vessels will be or will not be allowed
to pass In the event of war, tolls or
no tolls. They have, however. every
thing to do with the commercial
phase.
A free canal, in addition TO increas-
Ing the commerce of the United
States in ten years to fifty times the
cost of operation and interest, VIII
accomplish other remarkable results.
.aanl