Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-09-06
Sir Edward Grey Says Cost Of
Maintenance Falls Heaviest
on Foreign Shipping Through
lSthmuS.
DIFFERENT FIGURES
BY RATE EXPERT
United States, for Many Years,
Must Bear Burden With
About One Per Cent for Sink
ing Fund.
Ipy Morning journal Special L-ascd Wire


IBy Morning journal Special Leased wire
Washington Sept 5.s-The letter of
Sir Edward Grey. the British foreign
sc crctarN, to the Gates Head chamber
of commerce Yesterday, regarding the
I'l3ritish attitude towards the Panama
ipanal act, is regarded here as an in
lulcation that the negotiations between
the two countries are to have a finan-
cal basis, the foreign secretary's ar
eunent being that British shipping is
to be burdened with an undue pro-
I portion of the charges for the main
tenance of the canal through the com
plete exemption from tolls of Amer
lean coastwisc shipping.
In view Of this, Importance attaches
20 an inquiry now being conducted on
the isthmus by Professor Emery Il.
johnson. special commissioner on
Panama traffic and tolls.
Inkiew of Sir Edward Grey's state
m6nE' that British ships viii have to
pay for the American exemption. 1t
is said that in the data already pre-
pared by Professor Johnson II APP
pears that. according to the best cs
innate, the whole of the American
coastwise traffic likely to pass through
the Panama canal Immediately after
1t is opened will be about 100000
tons, or little more than 10 per cent
of the total tonnage that will pass
through the canal in the year 1915
and 1916. In the course Of five years,
st is estimated that this American
coastwise tonnage win rise to L4l4,-
900 tons, but as the foreign COM
,,,A sx.il in
tion. the same return viii exist.
ON the face of the figures, this
would indicate that the British and
other foreign commerce would have |
10 bear an additional burden of 10 |
per cent in tolls over and above what i
il would pay were American coastwise J
shipping not exempted. 1t is pointed |
out. however. that Il proportionate
share of this burden if it did exist, !,
would have to be borne by American
ships in the foreign trade, which con
sequenty would be on u precise equal
ity with british ships.
Professor Johnson's statistics dis
closed another factor that doubtless
viii bc urged Us the American nego-
tiators. This il set out in his com
)arison of the Sucz canal with the
Panama route. After pointing the
many advantages of the Suez in the
way of coating facilities, low insur
nee rates. superior opportunities for
,icking up cargoes between terminals
nd the like. Professor johnson says
hat the only possibility Of the Pana-
na canal getting a fair share Of the
worlds business is to place the tolls
t a figure actually lower than by the
uez route. These are $125 per ton
o that the rate on the American ca
al must be scnsibly lower than this. |
nd the professor has even mentioned q
flat dollar rate Tor the first few I
ears of the canals operation t
ON the basis of 10000. 900 tons bus I
iess. this would yield an income ade- b
uatc to most of the cost Of opera II
ons and maintenance Of the canal.
2, 500 600, allow 100000 a year for Il
imitation of the zone and provide a r
'ir rate of interest on the S375,000. is
% which the canal has cost not to C.
)cak of the mposslbilty OF providing
'r a sinking FUND. Allowing , per
mt interest on the capital invested in
lc canal and per cent for a sink
x fund, the total of the annual
iargcs on the canal are likely to be
ore than sl5.OOO.0oo. of about %
r. cent more than the irFcnue from
lis
with THESE Figures before them
nj the rate on British shipping fixed
r below the actual cost of the ser
cc by conditions over which the
nitcd States government has no con
pl, it is believed by officials here
at they viii have little difficulty IN ~
owing that the exemption of Amer O|
IN coastwise traffic from tolls has
influence upon British shipping
ID consequently that no discrimna-
N is proposed in violation of treaty
,htS.