The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-02-16

of freight from the rail lines to a mini
mum, is without justification. There is
no example in the history of wholly
ocean transportation of a successful at
tempt to maintain rates producing an
unreasonable profit. The rates via the
canal must eventually come down to
that of interest and depreciation and
a reasonable margin of profit, and the
company which can transport ton
of freight at the minimum cost will
fix that basis. That the transcontinen-
tai railroads have accepted the situa.
tion and are making no efforts and
have no plans to prevent the loss of
tonnage resulting from it can be ac-
cepted as fact. An evidence of this
is that one of the principal lines is
creating terminal facilities so as to
be able to haul into the interior of
California the larger movement of wa
ter-borne freight that the canal will
produce.
"To qualify legislators and the ad-
ministration to deal with canal legis-
lation without this ever recurring hal.
lucination of railroad controlled
canal, thorough investigation should
be made and decision reached upon
the result of it. 1t is strange that the
company which has developed the larg-
est feet of freighters as to tonnage
under the American flag and the most
valuable auxiliary to the navy as col.
liers (Which are most needed) and the
first company to make any serious in
roads into the business of the trans
continental railroads, should be charg
ed with having arrangements with the
railroads to protect the railroads busi
ness, when all of the facts are in con
tradiction. The administration g en-
couragement of n recent canal steam
ship project in the substantial form
of the forced application of the Postal
Subsidy Act to coastwise service, at
an annual cost of $750,0O0, shows to
what extent the administration has
gone to correct this supposed evil. This
without giving the steamship company
under suspicion the opportunity to an
swer the charge make against it Of
having arrangements with the trans
continental railroads. An arrangement
that takes $10,000,000 of revenue from
the railroads in one year and saves the
shippers $3,000,O0O should not be to
the liking of the former or displeasing
to the latter, and should be as a choice
morsel to the most ardent railroad
hater.
"The menace Of government-owne(
, line and the introduction of bills tt
grant American registry to foreigl
built ships for the foreign trade 9TH
opening wedge to the coastwise trade
are now having deterring effect upol
s the steamship owners who hav
4 planned to build ships for the canal
one in particular with fleet of steamer
is afraid of Washington and hesitatet
!, to build two large steamers which ha
! been decided upon.
Disadvantage in Oriental Trade
e "with regard to foreign trade vi
n the canal, high rate of toll could
!. obtained from the limited business t
the west coast of South America, Ger
n trail America and Mexico, but to con
e pete with Suez much lower tolls woul
o be necessary. The nine thousand mile
E of Pacific Ocean between Panama an
4. Japan with only one port of call, Hon,
b; lulu, will be great tax on fuel an
IS the displacement of much cargo, 1
lie compared with the Suez' route servir
,f such extensive and densely populate
20 territory with so many ports of ca
le and opportunities to bunker. 1t wou
n seem that the Panama route wou'
IN have the business from United Stat
is Atlantic and Gulf ports to Japan, bl
IA Suez would retain the business to por
south of Japan. The great develo
n ment in process in the Canadian Mort
IN west promises large movement
III wheat through the canal TO Europe
OF addition to the tonnage now moviI
IT. from California, Oregon and Washin
en- ton via Magellan and Cape Horn, al
,e' merchandise returning II is report
m' that some of the large North Atlant
- steamship companies will establish re
ne ulaT services between European POI
-. ~ and the Pacific Coast.
Oh Merchant Marine Naval Auxiliary,
on "There seems to be an opinion th