Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-11-14

BASED ON EXPERTS REPORT
meets Suez Canal Charges Which
Have Been Gradually Re-
duced in 43 Years of
Development.

washington. Nov. S-Prcsident Taft
Tonight issued a proclamation fixing
the rates that the foreign shipping of
the world shall pay for passage through
me Panama canal. The proclamation
made under authority of the canal act
passed by Congress in August, cstab-
fishes a merchant vessel rate of SID
per net Ton of actual carrying capacity,
with a reduction Of 10 per cent. on ships
in ballast Tho provisions of the procla-
nation are as follows:
lon merchant vessels CARRYING pas
sengers or cargo $1.20 per net vessel ton.
each 100 cubic feet, Of actual earning
capacity
2-On vessels In ballast without pas
sengers or cargo - per cent less than
the rate OF tolls for vessels with pas
senGers or cargo.
3-Upon naval vessels, other than
transports, coliers, hospital ships and
supply ships 81 per net ton, the ves-
sells to be measured by the same rules
as are employed in determining the net
tonnage Of merchant vessels.
The secretary Of war will prepare and
prescribe such rules for the measurement
OF vessels and such regulations as may
be necessary and proper to carry this
proclamation into full force and effect"
AMERICANS OF COURSE EXEMPT.
American coastwise shipping was
exempted from toll payment by Congress.
1t was to this provision of the act that
Great Britain automatically protested
but no reference to the incident was made
in the Presidents proclamation. Ameri-
can naval vessels are exempted without
specific mention either in the act of Con-
10 ,nfi Inn hoe the
authorities believed it unnecessary to ex-
plain the uselessness of payment from
its navy department pocket to the one be-
longing to the treasury department. The
rates named in the proclamation are
practically the same as those which will
be in force at the Suez canal next year.
The President based declaration of
rates upon the report and investigation of
Professor Emery Johnson of the Uni
versty of Pennsylvania. an expert
designated by executive order for the
task.
According to Professor Johnson's report
to the President. also made public to-
night the Panama canal should be upon
t. self-sustaining basis in 20 years 1t
should compete successfully with the
Suez route for the traffic of Enurope with
South America west coast points and
with New Zealand but cannot be expected
70 compete successfully for Europe's
trade with the Far East.
PROBABLY SINKING FUND
Taking the estimates OF the canal com
mission for expenses Of operation anc
maintenance Of the canal and for th'
improvements held to be necessary "a
the end of a decade. Professor johnson
figures that the rate per net ton can b'
reduced at the end OF 10 years to ST. Ever
with this rate, which he says probably
will correspond closely with the rate tina
NAV then be enforced through the Sue;
canal, the United States will OBTAIN
enough revenue from foreign vessels Il
nay all fixed charges. provide a sinking
fund Of one per cent. TO retire the Panama
canal bonds, and still find a yearly bal
ance.
The Johnson report shows that {
foreign traffic of about 100000 toni
may be expected through the cana
during its first two years of operation
a traffic OF more than 100000 tom
in 1912 and 100000 tons In 1925. Al
though not maintaining that his esti
mate is final, Professor johnson de
clared that an increase OF 60 per cent
a. decade In tonnage could be looke'
for, and that this would make tn
canal self-supporting In 20 years
The report goes into all phases o
the canal tolls question Profesro
Johnson's defense of the s1.2o rate 10
merchant vessels Is based on severa
grounds. 1t reads in parts as follows
"a toll OF $1.20 per net ton on load
ed merchant vessels and reducho
Of 40 per cent. from the standard rat
In lal
place the Panama canal and its riva
the Suez canal, upon an equal compet
tive footing.
MUST COMPETE WITH SUEZ.
"The Panama canal must compel
with the Suez route for the commerc
Of the eastern seaboard of the Unite
States and of the Atlantic-North sea
ports OF Europe with the Orient cas-
OF Singapore. For voyages betw~s
the eastern ports OF the United State
and the Orient, fuel expenses via Pan
anna will he less than by way of Sue
and, with equal tolls at each canal tn
Panama route will readily secure tn
traffic.
1T is not to be expected that muc
of the commerce Of Europe with tn
Pacific seaboard Of Asia can be divert
"a 10 Panama from its present rou'
via Suez To attract from the Suez
the American route any considerably
additional share of the European orier
tai tonnage, the rates of toll at Par
anna would have to be made so low I
20 reduce un1ustifably the revenues Z
the canal
"A Panama toll OF Sl.D per net tor
will not unduiy burden commerce serve
by the canal. The cost of transportstiu
between the two seaboards OF the Unite
states VIII be reduced several times til
amount of the toll and the saving
tlme and fuel expenses Via Panama, a