The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-11-16
PANAMA TOLLS ANNOUNCED.
PROCLAMATION FIXING RATES
FOR FOREIGN VESSELS.
President Bases Figures on Report
of Expert Specially Assigned to
Work and Issues Proclamation Un-
der Authority of Canal Act Passed
at Last Session Of COngress-Rates
Designed to Meet Competition Of
Suez Canal.

Washington, Nov. 13.-President
Taft tonight issued a proclamation
fixing the rates that the foreign ship
ping of the world should pay for pas
sage through the Panama Canal. The
proclamation, made under the author
ity Of the Canal Act, passed by Con-
gress in August, establishes mer-
chant vessel rate of $1.2O per net ton
of actual carrying capacity with a re-
duction of 40 per cent on ships in
ballast. The provisions of the procla-
maton are as follows:
First, on merchant vessels carry
ing passengers or cargo $1.2O per ves-
sci ton--eaeh 100 cubic feet-of ac-
tual carrying capacity.
Second, on vessels in ballast with
out passengers or cargo, 40 per cent
less than the rate Of tolls for vessels
with passenger or cargo.
Third, upon naval vessels, other
than transport colliers, hospital ships
and supply ships, soc per displacement
ton.
Fourth, upon army and navy trans
ports, colliers, hospital ships and sup
ply ships, $1.20 per net ton, the vessel
to be measured by the same rules as
are employed in determining the net
tonnage Of merchant vessels.
THE secretary Of war will prepare
and prescribe such rules for the meas
urement of vessels and such regula-
tions 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-
gress. 1t was to this provision of
the Act that Great Britain diplomatic
cally protested. No reference to the in
cident was made in the President s
proclamation.
American naval vessels are exempt
the Act of Congress or the proclama-
ton, because the authorities believed
it unnecessary to explain the useless
ness Of payment from it's navy depart
ment pocket to the one belonging to
the treasury department The rates
named are practically the same as will
be in force at the Suez Canal next
year
The President based his declaration
Of rates upon the report and investi-
cation of Prof. Emory r. Johnson, Of
the University Of Pennsylvania, an ex-
pert designated for the task by Execu-
tive order.
According to Prof. Johnson's report
also made public tonight the Panama
Canal should be upon a self-sustain-
ing 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 leland, but cannot be ex-
pected to compete successfully 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 81. Even with this rate,
which he says probably will CORES
pond closely with the rate that may
then be enforced through the Suez
Canal, the United States will obtain
enough revenue for foreign vessels to
pay all fixed charges, provide a
sinking fund Of one per cent to re-.
tire the Panama Canal bonds and still
find a yearly balance.
The Johnson report shows that q
foreign traffic of about 100000 tons
may be expected through the canal
during the first two years of opera
ton: that traffic Of moro than H.
600, 900 tons in 1920 and $4,000, 900
tons in 1925. Prof. Johnson estimat-
ed that an increase Of GO per cent a
decade In tonnage could be expected.
making the canal self-supporting in
twenty years.
Work on The Hotel