Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-05-10
CANAL RATE WAR.
Colonel Goethals Expects Hot Fight
Between Panama and Suez.

Competition between the Panama
Canal and the Suez Canal is expected
as soon as the former waterway is
open to commerce. The United States
Government realizes this and is pre-
pairing for it. writes w w Germans
in the Minneapolis journal. 1t Is the
intention, il Congress sanctions the
step. to begin business at Panama at
once with cut of practically 100 per
cent below the tolls charged by the
Suez Canal.
That the Suez Canal viii meet the
cut is not doubted That canal is
owned by private corporation. and
without competition it has been earn
ing gross revenue of upward of $50
000,GUo d Sedr. But if the Panama
Canal takes away any material SHARE
of the Suez business Colonel Goethals
has assured President Taft that the
Suez Canal can come down to the pro-
posed Panama rates and still declare
dividends of reasonable size.
The idea of competition between
canals On opposite sides of the Allan
tic Ocean may seem rather ar-fetched.
but the canal authorities of the United
states Government explain it in a ra-
tional way. They say the North At
lantic is the harbor of the worlds
wholesale anG manufacturing trade.
The principal business of the world
eenters around the shores of that sea.
The principal trade~of the world runs
into and out of the North Atlantic.
That is where all the rest OF the world
comes for its goods. and it is the clear
ing house through which il does it's
business and finances Its operations.
Heretofore there has been but one
chief gateway out of this center of
trade, that to the eastward through
the Suez Canal. Itut now there is to
be gateway TO the westward. as well,
through the Panama Canal Hence the
competition between the two gates
must follow OF all trade between
North Atlantic ports and the other side
Il the world. The question of which
will get the greater share of it is one
solely of dollars and cents.
Colonel Goethals, the builder of the
Panama Canal, who expects to throw
it open to commerce In less than two
Years. has explained all this to Presi-
dent Taft during his present visit to
Washington. It will not he a matter
OF sentiment, but purely one of which
| canal and which route will enable to
ships to deliver their cargoes at tho
lesser expense.
The Suez Canal al present charges a
toll Of about s170 per net registered
ton, American money and American
measure. From the attitude OF both
the President and of Colonel Cocktails
1t is Inferred that they will advocate a
charge 1t Panama Of not more than 81
per net registered ton. aud possibly
even less than that. What they woald
like to have Congress do is to give tho
President authority to fix The rate at
anything between 80 cents and S1.5O a
ton. so that he may be able to decide
upon figure. finally, that will permit
the Panama Canal fully to meet it's
operating expenses there being no evil
dence OF intention TO try to make NOM
ey out of it, OF course. these ra ties re-
fer to world traffic, and not to Ameri-
can SHIPS. rs the right Is always re-
tanned to let American vessels use the
canal tell free if that shall be deemed
best by Congress.