The Washington herald., 1911-12-04

The Panama Canal, to prove OIL Ihe
greatest practical usefulness to the Unit
ed States, should be free to the shipping
and commerce not only of the United
States. but of the world.
Legislation to this effect by Congress-
at its approaching session, would insure
the immediate, complete, and permanent
success of this waterway as new route
of International and national commerce.
1t would inaugurate, upon the day tol-
lowing it's approval. the greatest activity
in preparation for the canal the world
has known in the history of shipping and
commerce It would end at once all
doubt and discussion as to tolls and the
grave problem Of preferential treatment
of the American vessels as they affect our
treaty obligations to other countries
II the United States would experience
the largest benefits possible to its foreign
commerce from the Panama Canal, 1t
will make this interoceanic waterway as
free to the ships Of all nations as are
the two oceans which it will connect.
The only valid reasons for charging tolls
are, first, to pay the cost of operation,
maintenance, and interest on investment,
and. second, to protect the transconti-
mental railways from the competition Of
a free canal If, then, corresponding and
cOmpensating advantages in each case
will result from a free canal. II should
be made free. The increase Of the trade
of the United States through free canal
will be so much greater than that through
a toll canal that this increase in the hrst
year would equal the revenue from tolls
for five years. while in ten years the in
crease resulting from a free canal over
that of a toll canal would pay nearly
twice over the original cost OF the canal,
or fifty times the cost of annual opera
tiOn, &C.
The basis for tolls will be this cost of
operation. maintenance, and interest. The
official estimate of annual cost of opera
tion and maintenance is 100000. Inter
est on the outside approximate cost OF
the canal. 500 10000. at as low a rate as
per cent, would be S12OOO,0OO. Tolls
should therefore bring in an annual in
come OF S15,0O0,OOO. Upon a conservative
estimate Of trade experts, the actual traf-
fic in 1915 will aggregate 100000 tons,
which means that every vessel must pay
Sl.5O per net ton for each passage. on
an average measurement of 1900 tons per
vessel. each ship would therefore pay
tax or toll Of $500 per trip, which in turn
must he added to the cost of freight, and
is ultimately paid by the consumer. That
this 1850 tax on a 3,cOO-ton steamer en-
gagged in commerce may be a serious
burden is realized from the fact that this
sum would probably pay. in the case of
the average low-speed freight carrier, the
entire wages of the captain and crew for
the trip, and that the total Of different
payments for passages in a year through
the canal would be equal to the legiti-
sented by the ship. and this amount paid
cut in canal tolls might therefore pre-
vent the vessel continuing to engage in
the commerce Of the canal.
\ free canal, at a conservative esti-
mate. based on the data Of trade experts,
will carry in the first year $1,000. 900 more
Of the products of the United States than
a toll canal, an amount equal to receipts
Of tolls required to cover operation and
interest for five years. At this rate for
ten years, without even counting the nat
ural growth from year to year. the in
crease for that period will pay for the
entire original cost of the canal, and lib
Cral interest on the investment, or $780,
CC0.O0O. Stated another way, will the
United States deliberately throw away
an opportunity to increase the sale of its
to save S75OOO.OOO in tolls?
An annual appropriation OF $3,CO0.O0O to
operate and maintain the canal and the
assumption of its own interest are a
small burden to the United States gov
Trnment compared to the entire annual
budget of 81, 200. .O0O, 900 for the maintenance
of the government, but a direct annual
tax Of s15.0C0o 900 on ships and tonnage is
not only a heavy burden to traffic, but
Nnn nnn
year. in the commerce OF the United
States
One underlying and important truth
must be admitted by everybody: The
United States is not constructing the
canal to gain revenues from the tolls on
traffic. 1t Is building it purely for COM
mercial and strategic reasons: CONNER
cial. to provide a new and short sea
trade route between the Atlantic and
Pacific: strategic. to be able to protect
readily and effectively with its navy, in
case of war, real or threatened. both
Atlantic and Pacific coasts Tolls have
everything to do with the commercial
phase; they might seem to have nothing
to do with the strategic phase, but in
fact they have a most direct bearing
upon II, because all nations would unite
in keeping a free caneN neutral and in
condemning any nation which failed to
respect such neutrality: and the United
States might ultimately be relieved OF
the great expense of fortifying the canal
and guarding it with its army and navy.
A free canal, in addition to increasing
the commerce of the United States in
ten years to fifty times the cost Of opera
ton, maintenance. and interest, will &C
complish other results. 1t will absolutely
destroy all possibility. in any shape or
manner, of monopoly in interoceanic traf-
fic. 1t will encourage every ship owning.
operating. or chartering company or in
dividual in the world to build, operate,
or charter vessels to use the canal. 1t
will keep rates between the two coasts
of the United States at a minimum and