The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-11-14
RATES FOR FOREIGN
SHIPPING USING THE
PANAMACANALF FIXED
BY PRESIDENT TAFT
Merchant Vessels Must Pay
$1.2O Per Net Ton-Amer-
lean Coastwise Ship
ping Exempted
PROTEST OF GREAT
BRITAIN IGNORED
IN PROCLAMATION
Expert Who Made Exhaustive Study
of Subject Predicts That Canal
Will Be elf-Sustaining in 20
Years--American Naval
Vessels Exempted

washington, November 1s.-President
Taft tonight issued proclamation fixing
the rates that the foreign shipping of the
world shall pay for passage through the
Panama canal. The proclamation. made
under authority Of the canal act passed
by Congress in August, establishes a
merchant vessel rate of s1.2o per net ton
of actual carrying capacity. with ret
duction of 20 per cent on ships in ballast
The provisions of the proclamation are
as follows:
'1. On merchant vessels carrying pas
sengers or cargo s.2O per net vessel ton
each 100 cubic feet-of actual earning ca
pacity.
20. On vessels in ballast without pas
sengers or cargo. 40 per cent less than
the rate of tolls for vessels with pas
sengers or cargo
"3. Upon naval vessels. other than trans
ports. {aiHkr hospital ships and supply
ships, i ents per displacement ton.
"a Upon army and navy transports
coliers, hospital ships and supply ships
xi9O per net ton, the vessels to be meas
ured by the same rules as are employed
in determining the net tonnage Of mer-
chant vessels.
The Secretary of War will prepare and
prescribe such rules for the measurement
of vessels and such regulations as may
be necessary and proper to carry this
proclamation into full force and effect
No Reference TO British Protest
aAmesicsn eeastwise shipping was ex-
empted from toll payment by Congress.
II was to this provision of the act .hGt
Great Britain dipomatically protested.
No reference 10 the incident was made
in the Presidents proclamation.
American naval vessels are exempted
without specific mention, either in the
act of Congress or the proclamation, be-
cause the authorities believed it ,Innsces-
sary to explain the uselessness Of ray-
ment from its navy department pocket 10
tie one belonging to the treasury depart
mont. The rates named are practically
the same as will be in force at the suez
canal next year.
The President based his declaration OF
rates upon the report and declaration OF
Prof. Emery johnson of the University Of
pennsylvania, an expert designated for
Inc task by executive order.
According to Professor Johnson'5 fe-
port, also made public tonight, the Pan
anna canal should be upon self-susrain-
e ing basis in 20 years. 1t should compete
successfully with the Suez route for the
traffic of Europe with South American
west coast points, and with New Zealand,
but cannot be expected to compete sue
cessfully for Europe's trade to the far
east.
Z Lower Rates in Ten Years
Professor johnson figures that lhe rate
per net ton can be reduced at the end
of 10 years to 81. Even with this rate,
which he says probably will correspond
closely with the rate. that may then be
enforced through the Suez canal, tie
United States will obtain enough reve-
nue. from foreign vessels to pay ali fixed
charges, provide a sinking fund OF per
cent, to retire the Panama canal bonds.
and still find a yearly balance.
The Johnson report shows that a for
sIrn traffic OF about 9,0o0.0o0 tons hay be
<ss4N, through the canal durlg the
expect. wears Of operation: a tr}ffic OF
first twve. 100000 tons in 1920 nd IA
more than n,f2s5 Professor Jihnson
100000 tons in lszoznase Of 80 per cent
estimated that an incfpld be expected,
decade in tonnage cuppcting in 20
making the canal seIhrs defense of
years. Professor Jotessels reads in
the s1.20 for merchant
part as follows on loaded ner-
"A total of sl.2o per fiction Of 40 per
chant vessels, and rec in the ease OF
cent from the standard re the Panama
vessels in ballast will pez canal, upon
canal and it's rival, the sg.
nm equal competitive TO ust compete
The Panama canal The Commerce
with the Suez route X the United
of the eastern seaboa lic north sea
States and of the AA Orient cast
ports of Europe witt ----~--~
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