Evening star., 1912-11-14
CANAL TOLLS FIXED
President Taft Issues ProCla-
nation Announcing Rates.
CHARGE OF $1.2O A TON
American Coastwise Shipping Is
Exempted.
BASED ON EXPERTS REPORT
Prof. E. r. johnson Believes Water
way Should Be Self-Sustaining
in Twenty Years.
BASED ON EXPERTS REPORT

A proclamation issued last night by
President Taft fixed the rates that must
be paid for passage through the Panama
canal by the foreign shipping Of the
world. Congress. in August last, passed
the law under which the rates are fixed.
American coastwise shipping was ex-
empted from toll payment by Congress.
1t was to this provision of the act that
Great Britain automatically protested.
No reference to the incident was made in
the Presidents proclamation.
American naval vessels are exempted
without specific mention, either in the
act of Congress or the proclamation, be-
cause the authorities believed it unneces-
sary to explain the uselessness of pay
ment from it's Navy Department pocket
to one belonging to the Treasury Depart
ment. The rates named are practically
the same as will be in force at the Suez
canal next year.
The Tolls Announced.
The provisions of the proclamation
follow:
Il. On merchant vessels carrying pas
sengers or cargo S1.2O per net vessel ton
each 100 cubic feet-of actual earning
capacity.
80. On vessels in ballast without pas
sengers or cargo 40 per cent less than the
rate of tolls for vessels with passengers
or cargo.
%. Upon naval vessels other than
transport colliers, hospital ships and sup
ply ships. 30 cents per displacement ton.
~. Upon army and navy transports,
Golfers. hospital ships and supply ships.
$40 per net ton. the vessels to be meas
ured by the same rules as are employed
in determining the net tonnage Of mer-
chant vessels.
The Secretary of War will prepare and
prescribe such rules for the measure
ment of vessels and such regulations as
may be necessary and proper to carry
this proclamation into full force and
effect
Prof. Johnson's Report.
The President based his declaration of
rates upon the investigation of Prof.
Emory r. Johnson of the University Of
Pennsylvania, an expert designated for
the task by executive order.
According to Prof. Johnson's report,
also made public last night, the Panama
canal should be upon self-sustaining
basis in twenty years. 1t should compete
successfully with the Suez route for the
traffic of Europe with South American
west coast points and with New Zealand,
but cannot be expected to compete sue
cessfully for Europe's trade to the far
east.
Prof Johnson figures that the rate per
net ton can be reduced at the end of
ten years to ST. Even with this rate.
which, he says, probably Will correspond
closely with the rate that may then be
enforced through the Suez canal, the
United States will obtain enough revenue
from foreign vessels to pay all fixed
charges, provide a sinking fund OF per
cent to retire the Panama canal bonds
and still find a yearly balance. Prof.
Johnson's defense of the s1.2O rate for
merchant vessels reads in part as follows:
Rivalry of Panama and Suez.
"A toll of $1.2O per net ton on loaded
merchant vessels, and reduction of 40
per cent from the standard rate in the
case of vessels in ballast, will place the
Panama canal and it's rival, the SueZ
canal. upon an equal competitive footing.
1.-The Panama canal must compete with
the SueZ route for the commerce of the
eastern seaboard of the United States
and of the Atlantic north seaports of
Europe with the orient east of Singapore.
For voyages between the eastern ports
of the United States and the Orient fuel
expenses via Panama will be less than
by way of Suez; and with equal tolls
at eacn nCdndJ the fdHdHid route Will
readily SECURE the traffic. 1t is not to be
expected that much of the commerce OF
Europe with the Pacific seaboard Of Asia
can be diverted to Panama from its pres
ent route via Suez. Distances are less
via Suez; and with the exception of voy
ages from north Europe to Japan and
return. the fuel expenses are lower by
way of SueZ. With equal tolls at Pana-
ma and SueZ, some vessels will take the
Panama route between Japan and Europe
in order to discharge and secure cargoes
to American ports.
"A Panama toll of S1.2O per net ton
will not unduly burden the commerce
served by the canal. The costs of trans
portation between the two seaboards of
the United States will be reduced several
times the amount of the toll: and, for
the commerce of the eastern seabOard
of the United States with western south
America, New Zealand and with Aus
tralia, the economies effected by the
Panama canal will largely exceed the
Toll suggested.