Norwich bulletin., 1912-11-14

tonight issued a proclamation fixing the rates that the foreign shipping ot Ihe world shall pay for passage through the Panama canal The proc lamation, made under authority of the canal act passed by congress in Ad- gust, establishes a merchant vessel rate of S1.20 per net ton of actual carrying capacity. with a reduction of 40 per cent. on ships in ballast.
 The Scale of Rates.
 The provisions of the proclamation are as follows: l. On merchant vessels carrying pas sengers or cargo, S1.20 per net vessel ton-each 100 cubic feet-of actual earning capacity.
 2. On vessels in ballast without pas sengers or cargo. 40 per cent less than the rate of tolls for vessels with pas g nSers or cargo.
 9. Tnon naval vessels, other than transports. colliers. hospital ships and supply ships, 50 cents per displacement ton.
 {. Upon army and navy transports, colliers. hospital ships and supply ships. S1.20 per net ton, the vessels to fe measured by the same rules as are employed in determining the net ton mage of merchant vessels.
 AfneTiCan NeSSelS ENcHPl.
 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.
 American coastwise shipping was exempted from toll payment by con- Eress. It was to this fact that tie British automatically protested but no reference to the incident was male in the presidents proclamation.
 American naval vessels are exempt ed without specific mention either in the act of congress or the proclama- ton because the authorities believed It unnecessary to explain the uselessness of payment from its navy department pocket to the one belonging to the treasury department. The rates nam ed in the proclamation are practically the same as those which wilf be in force at the SueZ canal next year.
 Self Sustaining in 20 Years.
 The president based his declaration Of rates upon the report and investiga- 1ion of Prof Henry Johnson of the University. an expert designated b. exectMive order for the task. The re- port has been awaited with interest by shipping interests throughout the world.
 According to Professor Johnson's re- port Go the president, also made public tonight. the Panama canal should be upon 8 self-sustaining basis in twen- ~ years. IL should compete success fully with the Suez route for the traf- ac of Europe with South American west coast points and with New Zea- land. but cannot be expected to com pete successfully for European trade to fhe far east.
 Rate Reduction in Ten Years.
 Taking the estimates of the canal commission for expenses of operation and maintenance of the canal and ior 1he improvements held to be neces- sary at the end of a decade Professor Johnson figures that the rate per net ton can hn reduced at the end of ten Years tO S1. Even with this rate, which he says probably will correspond closely with the rate that may then b. 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 1 per cent to retire the Pan anna canal bonds and still find yearly balance.
 9,0o0,o00 Tons First Two Years.
 The Johnson report shows that a f0reign traffic of about 9,000,000 tons ran be expected through the canal dur tng its first two yea-s of operation; u traffic of more than 1000, 900 tons in 1920 and 14.000,000 tons in 1925. AL though not maintaining that his est- Snate is final, Professor Johnson de- clared that an increase of SO per cent. a decade in tonnage could be looked for. and that this would make the ca- ral self-supporting in 20 years.
 The report goes into all phases of the canal tolls question.
 On Equal Footing With Suez Canal.
 Professor Johnson's defense of the 3i20 rate for merchant vessels is bas- I'd on several grounds. It reads In part as follows:
 "A toll of S1.2O per net ton on loaded merchant vessels and reduction of l0 per cent. for the standard rate in nhe case of vessels in ballast will place eae Panama canal and its rival, the euez canal upon an equal competitive footing
 The Panama canal must compete with the Suez route for the commerce of the eastern seaIboard of the United States and ct the AtlanticNorth 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 Rrafic.
 Can't Get European-Asiatc Traffic.
 Tt Is not to be expected that much pf the commerce of Europe with the Pacific seaboard of Asia can be divert cd to Panama from it's present route via SueZ. Distances are less via Suaz and. with the exception of voyages from north Europe to Japan and re- turn, the fuel expenses are lower by way of Suez. With equal tolls at Pan- anna and SueZ, some vessels will take the Panama route between Japan and Europe in order to discharge and se- cure cargo at American ports. To at tract from the Suez to the Amerie an route any considerable additional share of the European Oriental tonnage, the yates of toll at Panama would have ue be made so low as to reduce uHjusti- nably the revenue of tae canal
 Toll Not an Undue Burden.
 "A Panama toll of sl20 per net ten will not unduly burden the commerce served by the canal. The costs of Transportation between the two sea- boards of the United States will be re- Aaaraa carrnraI ffrnac Inc av,o,.r4 ..