Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-11-14

Washington, Nov. 12.-President
Taft, tonight, issued a proclamation
fixing the rates lat the foreign ship
ping of the world shall pay for pass
age through the Panama canal The
proclamation, made under authority of
the canal act passed by Congress. in
August establishes merchant vessel
rate Of $l.20 per net ton of actual car
rying capacity, With reduction of
40 per cent. on ships in ballast.
The provisions of the proclamation
are as follows:
lon merchant vessels carrying
passengers or cargo. S1.20 per net ves-
sci ton,-each 100 cubic feet-of actual
net capacity.
2-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
transports, Golfers, hospital ships and
either in the act of Congress or the
proclamation because the authorities
believed it unnecessary to explain the
uselessness of payment from its navy
department pocket to the one belong
ing To the treasury department.
The rates named in the proclamation
are practically the same as those
which will be in force IN the Suez
canal, next year.
The President based his declaration
of rates upon the report and investi-
CATION of Prof Emery Johnson of the
University of Pennsylvania, an ex
pert designated by Executive order for
the task. The report has been awaited
with interest by shipping interests
throughout the world.
According to Prof Johnson's report to
the President. also made public tonight,
the Panama canal should be upon a self
sustaining basis in 20 years. 1t should
compete successfully with the Suez route
for the traffic of Europe and South
American west coast points and with
New Zealand. but cannot be expected TO
compete successfully for Eurepe's trade
to the Far East.
Taking the estimates of the Canal Com
mission for the expenses of operation
and maintenance of the canal and for
the improvements held to be necessary
at the end of decade, Prof Johnson
figures that the rate per ton can be re-
duced 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, the United States will obtain
enough revenues from foreign vessels to
pay all fixed charges, provide sinking
fund of l per cent. to retire the Panama
canal bonds and still find a yearly bal
ance.
The Johnson report shows that for
eign traffic of about 100000 tons may be
expected through the canal during its
first two years of operations traffic of
more than sll 600 in 1920 and 100000
tons in 1926 Although not maintaining
that his estimate is final, Prof. Johnson
declared an interest of go per cent. a
decade could be looked for and that this
would make the canal sef-supporting in
20 years.
The report goes into all phases of the
canal tolls question Prof. Johnsons de-
fence of the $l.20 rate for merchant YES
sells is based on several grounds. II
reads in part as follows:
"A toll of 81 20 per net ton on loaded
merchant vessels and reduction of Al
per cent. from the standard rate in tbs
ease of vessels in ballast will place the
Panama canal and its rival, the Suez ca
nal. upon an equal competitive footing
'.The Panama canal must compete with
the Suez route for the commerce OF the
eastern seaboard of the United states
| and of the Atlantic north seaports Oh
| Europe with the Orient east OF Sihsa-
more For voyages between the eastern
! norris of the United States and the Or
ent, fuel expenses via Panama WIN y,
| less than by way of Suez; ana VIII eausi
tolls at each canal. the Panama route WIZ
readily secure the traffic
1t is not to be expected that much VI
the commerce of Europe with the racine
seaboard of Asia can be diverted 10 ran
anna from its present route VIA SueZ