The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-11-14
CHARGES BASEDON
REPORT OF EXPERT
No Reference Made to England's
Protest Against Exemption Of
American Coastwise Shipping.
Should Be on Self-Sus-
tanning Basis at End Of
Twenty Years.


shipping Of the world shall pay fo-
passage through the Panama Canal
The proclamation is issued in accord
ance with the act passed BY Congress
In August and establishes a merchant
vessel rate Of $40 per net ton OF
actual carrying capacity with reduc-
ton of 40 per cent on ships In ballast.
The provisions of the proclamation
are as follows:
l. Merchant vessels carrying pas
sengers or cargo. $l.20 per net vessel
ton-each 100 cubic feet-of actual
earning capacity.
2. On vessels in ballast without pas
.engers or cargo. 40 per cent less than
the rate OF tolls for vessels with pas
sengers or cargo.
8. Upon naval vessels, other than
transport GOLFERS. hospital ships and
supply ships, SO cents per displacement
ton.
4. Upon army and navy transports,
GOLFERS. hospital ships and supply
ships, $3.50 per net ton. the vessel to
be measured by the same rules as are
employed in determining the net ton
mage Of merchant vessels.
The Secretary of War will prepare
and prescribe such rules for the meas
urement Of vessels and such regula-
lions as may be necessary and proper
to carry this proclamation into fuli
force and effect
No Reference to Protest.
American coastwise shipping was eA-
empted from toll payment by Congress.
To this provision Of the act Great
Britain automatically protested. No
reference to this incident was made IN
tho Presidents proclamation
American naval vessels are exempt
ed without specific mention. either IN
act of Congress or by the Presidents
proclamation because the authorities
deemed it unnecessary to explain the
uselessness of payment from its Navy
Department pocket to the ono belong
ing to the Treasury Department.
The rates named are practically the
same al will be In force at the Suez
Canal next year.
The President based his declaration
Of rates upon the report and estimates
of Professor Emory R. Johnson, OF the
University OF Pennsylvania, an expert
DESIGNATED for tho task by executive
order. According to Professor John
sor's report, also m ade public. the Pana-
ma Canal should be upon self-sus-
tanning basis in twenty years 1t
should compete successfully with the
Suck route for the trafhc OF Europe
with South American. west coast points
and with New Zealand. but connot be
expected to compete successfully Win
Europe's trade with the Far East
Professor johnson figures that the
rate per net ton can be reduced at the
end of ten years to 81. Even with this
rate, which he says probably will cor
he "a
then be enforced through the Suez
Canal, the United States will obtain
enough revenue from foreign vessels
to nav all fixed charges. provide
sinking fund Of per cent to retire the
Panama Canal bonds and have . year.
ly balance.
DeSense Of o1.9o Rste.
Professor Johnson's defense OF the
Sl.20 rate for merchant vessels reads
In part a. follows:
"A toll Of $50 per net ton in loaded
merchant vessels. and reduction OF
40 DER cent from the standard rate IN
the cases Of vessels IN ballast VIII
place the Panama Canal and its rival.
the Suez Canal, upon an equal competi-
dive footing.
The Panama Canal must compete
with the Suez route for the commerce
Of the eastern seaboard Of the Uniteo
states and Of the Atlantic North sea
ports Of Europe with the orient east
Of Singapore. For voyages oetween
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 1t each
canal, the Panama route Will readily
secure the trafic. It. Is not TO be sx-
pected that much of the commerce
Of Europe with the Pacific scaboard OF
Asia can be diverted from Panama
from, its present route via Suez. Dfs-
tances are less via Suez: and with Tn.
exception OF voyages from North Eu-
rope to Japan and return. the fueI
expenditures are lower by way OF
Suez With equal tolls at Panama
and Suez. some vessels VIII take the
Panama route between Japan and Eu-
rope In order TO discharge and secure
cargo to America ports. Panama
toll OF s1.ee per net ton will not IN
duly burden the commerce served by
the canal. The costs Of transportation
between the two seabcards OF the Unit
ed States will &c reduced several times
the amour. Of the tolls. and for the
commerce Of the eastern seabosfd OF
the United states with western south
ern American. New Zealand and with
Australia the economies effected by
the Panama Canal Will largely ex-
coed the toll suggested.
Nor viii Q toll u $40 per net ton
seriously restrict the use OF the canal
b. European countries. For the com.
msvce q Europe with CHILE and Win
Nsw Zealand, the fuel expenses va
Panama VII be 90 much less than via
NseeIlss ss 60 make the canal r0uts
preferable even with tolls Of e.2s
per net ecn. Moreover, the prc0ssose
TRADE route between Europe ana ChaIe
b via Panama and the ports inferno
Gate 0esWeen the Dsthmus sme vsSpe-
susoo. Pnaawa n the na&urs1 soeFoooS
tCVasisvs1 o 0Ve0 DN0elS