The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-09-11
TO AEFUTE ENGLISH CLAIM.
AMERICAN EXPERT PREPARING
FIGURES On CANAL COST.
Believed That His Investigation Will
Show Justice OF Exemption of
United States Ships.

Washington. Sept. 5.-The letter OF
Sir Edward Grey. the British foreign
secretary. to the Gatschead chamber
of commerce yesterday regarding the
British governments attitude to-
wards the Panama canal act is re-
garded here as an indication that the
negotiations between the two coun-
tries are to have a financial basis,
the foreign secretary's argument be-
ing that British shipping is to be bur-
dened with an undue proportion of
the charges for the maintenance of
the canal through the complete ex-
emption from tolls of American
coastwise shipping.
In this view Importance c Cttaches
10 an inquiry now being conducted on
the isthmus by Prof. Emory r. John
son. special commissioner on Panama
traffic and tolls. He already has COM
piled. by direction of the secrtary of
war. all the statistics bearing on the
character and probable amount of
the traffic through the Panama canal.
He now Is engaged In study of the
financial aspect OF the enterprise so
tolls may he adjusted to the needs Of
the canal on a strictly scientific basis.
In the data already prepared by
Prof. Johnson 1t appears that ac-
cording 10 the best estimates the
whole American coastwise traffic like
ly to pass through the Panama canal
Immediately after 1t is opened will he
about 100000 tons. or little more
than 10 Der cent Of the total tonnage
In the years 1915 and 1916. In the
course of five years IL Is estimated
that this American coastwise tonnage
will rise to 1.414.000 tons. but as the
foreign commerce will increase In like
proportion the same relation between
the two will exist.
On the face of the figures this
would indicate that the British and
other foreign commerce would have
TO bear an additional burden of 10
per cent. IL Is pointed out, however.
that proportionate share of this
burden. IL IL did exist. would have to
be borne by American ships in the
foreign trade. which consequently
would be on a precise equality with
British ships.
Prof. Johnson's statistics disclose
still another factor. set out i'm mis-
comparison of che Suez canal with
the Panama route. After pointing out
many advantages Of the Suez, Prof.
Johnson declares that the only pos
sib.lity Of the Panama canal ge.-
ting a fair share of the worlds bust
ness Is TO place the tolls at figure
actually lower than by the suez ~oute.
These are now s1.25 per ton. me
professor has mentioned a fat 81 rcte
for the first few years.
On the basis of 100000 tons
business this would yield an income
Inadequate to meet the cost of oper-
ations and maintenance of the canal
-s3. 500. .000-allow $1,000, a year for
sanitation of the zone and provide
fair rate OF interest on the canal
cost. not to speak OF the impossi-
bility OF providing for sinking fund
Allowing per cent interest on the
capital invested In the canal and
per cent for sinking fund. the total
OF the annual charges on the canal
are likely to be more than $4,000
900. or about so per cent more than
the gross revenue from tolls.
With these figures before them and
the rate on British shipping fixed
far below the actual cost of the SER
vice by conditions over which the
United states government has no con-
troll they Will have little difficulty in
showing that the exemption of Amer
lean coastwies traffic from tolls has
no influence upon British shipping
and consequently that no discrlmina-
ton Is proposed In violation of treaty
rights