Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-11-14
Basis Contemp|ateS Competi-
ton With Suez Canal for
European Commerce With
Much of World,
BRITISH PROTEST
is NOT DISCUSSED
Income Expected to Pay All tx
penses Of Operation, Interest
on Investment and Provide
Sinking Fund,

IB, Morning Journnl Special Leased Wire. 4
WASHINGTON, Nov. 13.--President
Taft tonight issued a proclamation
fixing the rates that foreign shipping
shall pay for passage through the
Panama canal. The proclamation.
made under authority Of the canal bill
passed by congress in August estab-
fishes Il merchant vessel rate of Sl.20
per net ton in actual carrying ca
pacity, with a reduction of 40 per
cent on ships in ballast. The provi-
sions Of the proclamation are as fol-
lows:
First ON merchant vessels car
rying passengers or cargo, $l.20 per
net vessel ton--each 100 cubic feet
of actual earning capacity.
Second On vessels in ballast
without passengers or cargo, 40 per
cent less than the rate of tolls for
vessels with passengers or cargo.
Third. Upon naval vessels, other
than transports, colliers, hospital
ships and supply ships, so cents per
displacement ton
Fourth. Upon army and navy
transports colliers, hospital ships and
supply ships, $120 per net ton. the
vessels TO be measured by the same
rules as are employed in determn-
ing the net tonnage of merchant
vessels
"The secretary of war will prepare
and prescribe such rules for the mea-
surement Of vessels and such regula-
tions as may be necessary and proper
20 carry this proclamation into full
force and effect"
American coastwise shipping was
exempted from toll payment by con-
gress. 1t was to this provision of the
act that Great Britain protested but
no reference to the protest was made
in the presidents proclamation. Amer
lean naval vessels are exempted
without specific mention either in
the act of congress or the proclama
ton because these authorities believe
il unnecessary to explain the use
lessness Of payment from its navy
department pocket to the one belong
ing to the treasury department.
These rates are practically the
same as those which will be in eff
feet at the Suez canal next year.
The president bases his declaration
of rates upon the report and nvesti |
cation of Prof, Emery r. Johnson, of /
the University of Pennsylvania. an
expert designated by executive order |
for the task.
The report has been awaited with /
interest by shipping interests
throughout the world.
Arrnr1ipcs to Drnf To /
to the president also made public to-
night the Panama canal should be I
upon a self sustaining basis in TWEEN /
ty years. 1t should compete sue
cessfullv with the Suez route for the
traffic of Europe, with South Ameri-
can west coast points and with New |
Zealand but cannot be expected to
compete successfully tor Europes |
trade TO the far east.
Taking the estimates of the canal I
commission for expenses of operation
and maintenance Of the canal and for
the improvements held to be neces-
sary at the end of q decade, Professor
johnson figures that the rate per net
ton can be reduced at the end of ten
years to 81. Even with this rate.
which he says probably will CORES
pond closely with the rate that may
then he enforced through the Suez
canal. the United States will obtain
enough revenue from foreign vessels
to pay all fixed charges. provide a
sinking fund of per cent to retire
the Panama canal bonds. and still
find yearly balance
The johnson report shows that a
a
tons may be expected through the
canal during its first two years of
operation. a traffic Of more than H.
100000 tons in 1920. and 1900. 600
tons in 1929. Although not maintain
ing that his estimate is final. Pro-
fessor johnson declared that an in
crease of so per cent a decade in
tonnage could be looked for and that
this would make the canal self-sus-
tanning in twenty years.
Professor Johnson's defense of the
S1.20 rate for merchant vessels is
based on several grounds. 1t reads in
part as follows.
A toll of s1.20 per net ton on load
ed merchant vessels and reduction
Of 40 per cent from the standard rate
in the ease on the vessels in ballast
viii place the Panama canal and its
rival, the Suez, on an equal competi-
tive footing. ,
The Ptnama canal must compete :
with the Suez route for the commerce !
OF eastern states. and Of the Atlantic {
North Sea ports of Europe with the /
Orient east o. Singapore. For voyages {
between The eastern United states I