The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1912-02-17
Former Engineer-in-C Chief of Big Water
Way Thinks This Country Will
Not Be Commercially Benefited
by 1t to Any Great Extent.

us as Nation to obtain any material
comercial benefit from the vast sum
which we have been putting into this
enterprise and has given little con
sideration to the immediate and i'm
portant work necessary to procure
those benefits.
1t is folly to talk of discriminating
in favor of American chipping by
special rates or rebates granted to
American bottoms. In the first place,
this situation was foreseen by Great
Britain when the Hay.Pauncefore
Treaty was concluded and this point
well guarded in the interest of British
commerce.
While to break it will be consistent
with our action in trampling upon all
the international equities, as illustrat-
ed by our establishment of the Pana-
ma Republic, such a course would not
be tolerated by the foreign powers un-
less supported by stronger physical
arguments other than those we now
possess.
1t is a well-known fact that it costs
from two to three times as much to
carry a ton of freight in an American
bottom than in one of foreign coun-
try While there are various reasons
for this condition, it is more particu-
larly due to our tariff laws and partly
to our shipping laws, and no make
shift in the way of subsidies or diff
ferential tolls in the use Of the Pa
mama Canal can remedy this situation,
as our freight is carried by the slow
bearers of the ocean and not by the
fast mail lines, in the interest of which
subsidies have been heretofore con-
sidered.
The highest rate possible to apply
to the tonnage passing through the
Panama Canal, even if abrogated in
favor of American cargo carriers,
would not be differenttal enough to
enable American ships to compete with
those of foreign countries operating
under their native laws and conditions.
The great popular misconception
that the American trunk line railroads
have been spending time and money in
an endeavor to thwart and interfere
with the construction of the Panama
Canal is absolutely without founda-
ton and can only be attributed to vi
vid imagination. Our present shipping
laws requiring all our coastwise trade
to be carried in American bottoms
upon completion of tAe canal will in
clude all interchanges by water be
tween the Pacific and Atlantic Coasts
of the United States.
These laws are the height of absurd
ity upon consideration of the fact that
when we have paid our millions for
the construction OIL this great work
we will not be in position to derive
the full benefit. of it. If we are JUST
ged in spending 1915, 100000 in an at
tempt to reduce through transcontin
entail railroad rates, why do we not
20 a step further and permit this bust
ness to be carried in foreign bottoms
This would at least cut the cost in two
and still further punish the stock
holders of the through transcontinent
al railroads for investing their money
in enterprises for transportation by
land.
Analysing the probable benefits o.
this great work to various sections o.
the United States under existing con
ditions, | believe that little will insure
to the great Central West. Some ad
vantages will accrue to established
ports on the Atlantic seaboard blu
they will be comparatively insignifi
cant unless we realize the changes
necessary in our laws and conditions
to bring them about.
Little trade will be taken away from