New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-14
TAFT FIXES RATES
FOR PANAMA CANAL
Continued from first page.

son figures that the rate a net ton can
be reduced at the end Of ten years to
81. Even with this rate, which, he
says. probably will correspond closely
with the rate that may then be en-
forced through the Suez Canal, the
United States will obtain enough reve-
nue. from foreign vessels to pay all
fixed charges and provide sinking
fund OF 1 per cent to retire the Pan
anna Canal bonds, and still find a
yearly surplus.
The Johnson report shows that q for
eign traffic Of about 100000 tons may
be expected through the canal in Its
first two years Of operation; traffic OF
more than Ill 100000 tons in 1920 and
Of 100000 tons in 1925. Although
not maintaining that his estimate is
final, Professor Johnson says that an
increase of 60 per cent a decade in
tonnage can be looked for, and that
this would make the canal self-sup-
porting in twenty years.
Professor Johnson's Argument.
The report goes into all phases Of the
canal tolls question. Professor John
sons defence of the 81 20 rate for mer-
chant vessels is based on several
grounds. 1t reads, in part, as follows:
\ toll of 81 20 a net ton on loaded mer-
chant vessels and a reduction of ~ per
cent from the standard rate in the case
OF vessels In ballast will place the Pam
anna Canal and its rival, the SueZ Canal,
upon an equal competitive footing.
The Panama Canal must compete with
the Suez route for the commerce or the
Eastern seaboard OF the United states
and OF the Atlantic-North Sea ports 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 each canal the Panama route Will
readily SECURE the traffic.
II Is not TO be expected that much OF
the commerce of Europe Win the Pacihc
seaboard OF Asia can be diverted TO
Panama from its present route via Suez
Distances are less via Suez, and, with
the exception OF voyages from North Eu-
rope to Japan and return, the fuel eX-
penses are lower by way of SueZ. With
equal tolls at Panama and SueZ, some
N'SS'iS VIII Ndht the IdIdIld IOult NC
tween Japan and Europe in order TO dis
charge and secure cargo at American
ports. To attract from the Suez to the
American route any considerable addi-
tional share OF the European Oriental tom
mage, the rates of toll at Panama would
have TO be made so low as to reduce UNI
justiiably the revenues Of the canal
Panama toll Of 81 20 per net ton will
not unduly burden the commerce served
by the canal. The costs of transporta-
ton between the two seaboards of the
United States will be reduced several
tunes the amount Of the toll, and for the
commerce OF the Eastern seabodrd OF the
United States with Western South Amer
lea and with Australia the economies
effected by the Panama Canal will largely
exceed the toll suggested. Likewise, the
saving in time and fuel expenses via
Panama. as compared with the Magellan
route, between our Eastern seaboard and
New Zealand. win be such as TO insure
the profitable use Of the Panama Canal.
Nor will toll OF 81 % per net ton Sc
riously restrict the use OF the canal by
European countries. For the commerce
of Europe with Chill and with New
Zealand. tho saving resulting from the
shortening OF the time OF voyage via
Panama. as compared with the Strait
of Magellan, would not warrant the pay