El Paso herald. (El Paso, Tex.) 1901-1931, 1912-01-04

/ to pass through the Panama canal
such commerce as may come that
I way soon after midsummer in 1913
and realizing that it viii take from IS
| TO "A months for the shipping world to
! readjust itself to the new conditions
involved by the completion Of the canal
the authorities of the big waterway
feel that 1t is highly important that
congress should act at the earliest pos
sible opportunity in the matter Of fix.
ing the rate of tolls to be charged.
They urge that they will be able to
put ships through safely from the be-
ginning, and that ii would be a most
unfortunate condition to have the canal
ready for business and business not
ready for the canal
Delay May Be Costly.
There are many questions to be con-
sidered and determined in the fixing Of
rates, and any delay in this regard
will correspOndingly delay the profit
able operation of the great ditch. The
canal authorities feel that by dint OF
hard and unrem1tting effort they have
saved the people of the United States
many millions Of dollars in actual costs
and have fastened by many months the
time when the waterway may be used
by the United states either in war or
in peace.
It is believed by the authorities, after
a most minute and painstaking inves-
LEGATION of the shipping situation of
the world, that the rate of toll which
would at once serve to secure for the
United States q fair return upon its
investment and, at the same time, be
low enough to make IL profitable for
the commerce Of the world to use the
canal, would be one dollar per net ton
capacity of the ships passing through
the big waterway. They find that any
rate in excess Of S1.40 might, force vast
quantities Of business TO use the Te-
hauntepec route and the cape routes
Panama canal at the one dollar rate.
This rate does not mean that each
ton of freight carried through the canal
would have to pay dollar for transit
through it, The average ship has
capacity practically two and One-hal1
times its net register tonnage. In other
words, ship going through the canal
with full load would pay 80 cents
ton for the actual tonnage Of the
freight. carried, while the ship with an
average cargo would probably pay so
cents per cargo ton.
The Dollar Ton Rate.
No one need assume that the one dol
lar per net ton basis Of assessing tolls
would play any very important part in
the through rate from New York to San
Francisco. The average rate between
these points probably viii be in the
neighbOrhOOd OF $40 per ton. On this
basis a charge Of one dollar toll on the
net tonnage Of a ship carrying the av-
erage load, would make the cost Of car !
rying a ton of freight through the canal
equivalent TO percent Of the freight
rate from New York to san Francisco. l
Today the rate across the isthmus of !
Tehauntepec represents 50 1-3 percent Of I
the through rate.
There are many people who do not 4
want a dollar rate through the canal /
For instance, some of them have de-
clared in favor Of a canal free Of all 7
tolls. They assert that the big water 7
way is WOrld-affeCting project, ana 7
h. will he rafaVfr7
the role of benefactOr TO all civiliza- /
ton by making il as free as the high F.
seas. They believe that in the long
run the United States will profit by !,
such a course.
Free Canal Would Help Europe.
This contention is answered by those
who advocate tolls that more than 30
percent of all of the business which
would go through the canal under such
conditions or which viii go through
the canal under the dollar rate, viii
never touch the shores of the United
States. They call attention to the fact
that a majority Of all the trade Of the
west coast of Mexico, Central America
and South America goes to Europe d. .
rect. Likewise a majority OF all OF
the trade that might pass through the
canal bound from Australia, New Yea
land and other trans-Pacific points,
would not touch the American coast
at any point With these conditions
In mind, the opponents OF free canal
QECldEe LudL us Tree use MD4AQ 64hD ~
European nations more than half in
terest in the benefits derived from its
commercial operations, without their
contributing a single penny TO Its con-
structiOn or to the cost Of its opera
ton
It is pointed out in this connection
that if the people of the United States
are to get the greatest possible benefit
from the construction OF the canal there
must follow a systematic program or
IN and waterway improvements Inc
finances Of the government will be IN
much better shape for making these
Improvements If tolls sufficient to meet
the cost of operation and TO yield a Ialr
return upon the investment are col
.ected on the canal. 1t has been pro
posed by some that the best possible
way to provide for such inland water
ways in the United States as are nee
assary for securing the maximum bene- .
fits of the cSnaL would be to levy ,
toll yielding q maximum income and
making 1t available for inland water /
way construction. Thus, One-ha4 OF {
this would be contributed by shipping
which would never touch the shores OF
The United States and in which the peo- I
pie of this country have not the slight I
est interest.
spending Must Stop Sometime.
1t is declared by those who advocate
reasonable toll that the government
,annOt go on perennially spending MI
ions Of dollars for maintenance unless {
and that such returns as the cost OF I
constructing the Panama canal are
highly advisable If the program of in
and waterway improvement is to be
,arried forward. 1t is asserted by many
hat the trans continental railroads ana z
.llied interests are extremely anxious
hat the rate Of tolls to be charged
hail be made higher than one dollar :
Der ton. Every cent that is added TO
he rate will be favorable to them, be- 3
aUse the rates Of the continental J.
must be fixed largely by the /
ate on the Panama canal The com !
letition of the canal is the competition +
hey have dreaded. and one that VIII +
,e very difficult to meet.
OF course, in the long run, the canal Y
nay prove q boon even to the trans r
Ontinental railroads as is disclosed Dy Y
he attitude OF the Tehauntepec route +
authorities. They declare that on Il
asis Of one dollar ton, they have al $
olutely no hope Of competing with the
anal on fun cargo business. At the {
anne time, they believe that the gen Y
raj stimulation of commerce through
ut the entire territory for which they 2
andle traffic Will result in such an eX- s
ansiOn of trade that the added volume y
( freight which will come to them for
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