Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1912-02-27

al sl2O.
Comment that will interest all Ha-
wall was that made by President Dear
born of the American Hawaiian line.
Hawaii knows Mr.. Dearborn and his
views are gathered from probably a
closer study and greater experience
with the situation than most any 9TH
er transportation man lie is posi-
tive that the opening of the canal will
have the immediate effect of develop
ing larger commerce for the port Of
New York. He is further quoted on
the general trend of traffic as follows:
ct must inevitably result in re-
duction of rates between the Atlantic
and the Pacific. More frcights will
be drawn from the interior to this
gateway-frcights which now 20 by
rail to the western coast. That In
itself. will mean n vast increase In
the business of the port"
The Observation-Disclosures line has
been using the Tehuantepec route for
the transshipment of its Cargoes. The
company has announced its intention
of abandoning that route Immediately
that the canal is opened A feature
of the opening of the trans-isthmian
waterway which does not seem to have
attracted much attention, Is the pass
ing away of the Tehuantepec route.
This railway" said Mr.. Dearborn.
with its great port works, represent
ing an investment of 100000, 900, will
be in the unprecedented situation of
losing its entire transshipment bust
ness in the twinkling of an eye. and
II seems proper to express the opin-
ion that this country owes debt of
gratitude to the Mexican Government
for creating this route, the gross earn
ings of which have not in any year
amounted to the fixed charge of the
investment"
Taking up the relations Of the rail-
roads to the canal, Mr.. Dearborn said:
THE apprehension existing in some
quarters that the transCOntincntal
railroads will In some underlined man
ner cause the suppression of traffic
through the canal, so as TO reduce the
diversion of freight from the rail lines
to a minimum Is without justification.
There is no example in the history of
wholly ocean transportation Of sue
cessful attempt to maintain rates pro-
ducing an unreasonable profit. The
rates via the canal must eventually
come down to that of interest and de-
probation and reasonable margin
of profit. and the company which can
transport ton of freight at the min
imum cost will fix that basis.
THAT the transcontinental railroads
have accepted the situation and are
making no efforts and have no plans
to prevent the loss of tonnage result
ing from It can be accepted as a fact
An evidence of this Is that one Of the
principal lines Is creating terminal
facilities so as to be able to haul into
the interior of California the larger
movement of water-borne freight that
the canal will produce.
with regard to foreign trade via
the canal, high rate of toll could
be obtained from the limited business
to the west coast of South America,
Central America and Mexico, but to
compete with Suez much lower tolls
would be necessary. The nine thou
sand miles of Pacific Ocean between
Panama and Japan with only one port
of call, Honolulu, will be a great tax
on fuel and the displacement of much
cargo, as compared with the Suez
route serving such extensive and
densely populated territory with so
many ports of call and opportunities
to bunker. 1t would seem that the
Panama route would have the bust
ness from United States Atlantic and
| Gulf ports to japan, but SueZ would