El Paso herald. (El Paso, Tex.) 1901-1931, 1913-02-19
Canal Is Built for Future
Great Waterways Maximum Tonnage
Capacity VIII Not BE Reached
For 90 Years.
By Frederic j. HaEkin -
By Frederic }. Haskin =
, ASHLNGTON. d. G, Feb. /!


between the amount of shipping in
sight for the opening of the canal and
the amount it caa accommodate. The
studies Of professor Emory r. john
son, the traffic expert upon whose
research the rates of toll have been
fixed, indicate that the shipping which
will use the canal in 1915 Will approx
innate 1O.50O,O00 net register tons. The
ultimate capacity Of the big waterway
is SO, 900, 600 tons or nearly eight
times as much as there is in sight
Professor Johnson concludes that
the expansion Of the business Of the
canal will go forward at the rate
of about so percent a decade. At
that rate we viii have 100000 tons
in 1925, 100000 tons in 1885, a.
OOO, 900 tons in 1915. and the maxi
mum capacity in some so years. But
even then the possibilities will not
have been reached. An additional
storage reservoir above GambOa AMI
another track" of locks. making the
lock part of the canal correspond TO
track railway, viii increase the ca
pacity of the canal to a point far be-
yOund the 1o0,O0O.O00 ton mark
Views Differ On Tolls.
There are different ideas as to how
the United States should proceed in
the matter Of fixing tolls Whatever
disposition is made of the controversy
over the right of the United states
reasonable to expect that the United
States will reckon the toll rate on
a basis including American cOastwise
shipping. or else we would be placing
greater burdens on the English ship
ping than upon our own. In other
words, We may exempt the cOaStWise
shipping from the payment Of tolls,
but in the determination of the rate
We certainly Will have to include IL
In making this. rate some think that
only the actual cost OF operation and
maintenance ought to be considered
This will amount to about four mil
lion dollars year-with an additional
annuity Of q quarter of q million dol
lars TO the republic of Panama for
our use of the canal zone On this
basis the rate Of toll that would make
the canal self supporting from the
beginning, assuming an initial tonnage
of 1O,50O,000 tons. would be about 40
cents per register ton or less than 20
cents per cargo ton
Fair Rate OF Interest Favored.
Others assume that We ought to fix
a rate of toll that will not only meet
all operating and fixed charges. but
which will afford US fair interest
on our Investment They regard
percent as fair interest That would
bring the total up to S15,0OO,0OO a year,
and at the rate or toll fixed today
S1.20 per net register tOn-the canal
will begin to be self supporting IN
about three years after Its opening
expense in connection with the opera
alton Of the canal ought to be met by
the tolls. They would add to the Sl5,-
100000 the cost OF protecting the
canal, which would bring up the total
approximately to S27, 600, 900. The es-
Inmates Of the cost Of protecting the
canal contemplate an annual eXpen1l-
ture OF S1,5OO,000 for coast artillery,
S6,OO0,000 for infantry, S1,0OO,00O for
field artillery. and S1,20O,OOO for
marines. On the basis of charging IN
these things as a part of the cost OF
maintaining the isthmlan waterway II
would be about 20 years before the
canal would become self sustaining
Even on that basis. which is not the
basis upon which our present tolls are
fixed, by the time the maximum ca
pacity Of the canal is reached the
United States could make rate OF
less than 40 cents q net register ton
The basis OF toll liking recommended
by professor Johnson is that which
cOntemplates meeting the operating
expenses, the interest on the invest
ment, and the annual payment 10 Pana-
ma. Upon this basis, when the maxi
mum capacity Of the canal is reached,
the United States could make rate
of 20 cents a ton and have enough
left over ultimately to wipe out the
cost of building the canal
annual Revenue SI3,GG0,OOO
Professor Jo9.nsOE thinks that we
will get about $13,OOO,O00 a year out
Will be brought up to SzO,O0O,0OO IN
ten years-these figures including
cOastwise shipping. II coastWlse
shipping should be exempted from
consideration as we'll as from the
actual payment OF tolls, the canal
revenues would not make it self sup
porting in the first decade. Leaving
that traffic out of the reckoning, and
considering only the foreign shipping,
the revenues will start in at about
S11, 100000 a year and Will rise to
about $1I0OO,000 by the end of the
first decade The rate Of S1-20 ton,
net register, which has been fixed, is
identical with that being made at
Suez today. 1t is thought that in a
few years Suez will put the rate be-
low that point, and professor Johnson
thinks that we always will have TO
meet the Suez rate
Expect to Reduce Rate.
With the growth Of traffic he thinks
that we can. in the second decade, re
duce the tolls to or below 81 a ton,
and still permit the gradual repay
ment of the cost of building the canal
Beginning in 1925 ne would start a
plan of amortization that would repay
the United States for the expense OF
building the canal in 100 years, by
estab lishing a sinking fund of 1 per-
cent per year. At that time the reve-
nues, based on all traffic, would take
care Of maintenance and operation,
government and sanitation, interest, /
coo a year for the sinking fund.
There will be one item Of revenue
which the Suez canal Will enjoy that
the Panama canal will not. The for
mer charges about 50 for each pas
senger above u years old passing
through it, and half fare for children
above three years of age. Some 800
600 passengers go through the canal
annually. The United States has eX-
empted passengers from any charge
asserting that it amounts to a double
charge when calculating the space they
occupy as a part Of the net tonnage
OF the ship carrying them.
VIII Divert Traffic.
The vast increase in the amount Of
traffic that is indicated to take place
from decade to decade will be made up
In two ways-through the natural ex-
pansiOn Of business on existing routes
and through the diversion of much
traffic from other routes. 1t is
through this diversion that a major
portion of the early expansion viii
take place
The first and biggest change viii
come when the American Hawaiian I
Steamship company sends its big fleet
OF ships through the canal instead Of
operating them in connection with the /
railroad. The Mexican I
is a stakeholder in the .
Hawaiian Steamship com /
pany. but. not having a controlling in ]
III n nHaH g.HnH