The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-02-16
Panama Canal Tolls
V.-The Disnute in COnoress
= '0 NJ 0V1ISiNo -
BY Frederic ]. Haskin

- When the United States was con-
sidering The a~dvisability of undertake
ing to build the Panama canal, Presi-
dent Mckinley looked the country
over for the best authority on trans
%portation and commerce., to serve on
the canal commission, n to prepare
an adequate report on the Industrial
and commercial value of an isthmian
canal. He finally selected Professor
Emory r. Johnson, professor of trans
p%ortation and commerce at the Uni
versity Of Pennsylvania. The john
son report was a most comprehensive
one, and one that went far toward
demonstrating the prospective value of
such a waterway.
When the time came to fix the tolls
on the canal, Professor johnson again
was drafted into service to bring his
inquiry up to date, and to revamp it
In line with the developments of the
decade that elapsed since the previous
report was made. Professor johnson
made an extended inquiry into all
matters pertaining to the amount of
traffic indicated, the character of this
traffic, the conditions that might in
fluence it by tending to drive it away
or to lead it to hoose the Panama
route over other routes, and into the
traffic history of other great artificial
waterways.
His first line Of inquiry related to
distances, in an attempt to show Just
what will be the natural course of
shipping after the canal is constructed.
While realizing the other elements,
including coaling and provisioning
facilities, amount of way cargo, and
the like, tend to counteract distance
considerations when a ship owner
plans tho route of his ships, at the
same time distances are the first con-
sideration. He finds that the longer
OF two routes may be the more profit
able one if there be a greater volume
of intermediate traffic. At the same
time it may be more profitable if the
price of coal and the number of coal
ing stations are to it's advantage.
Lower insurance rates may overcome
distance, and toll charges may be so
high as to divert traffic. His prob
lem was to assess all these matters at
their true value, and with this assess
ment in mind to try to forecast the
amount Of trade that will be avail
able at Panama and to fix a rate of
toll that would yield the maximum
return and at the same time make
the canal of maximum benefit to the
worlds shipping.
He finds that the canal will shorten
the water distance from the east coast
of the United States to the west coast
by more than half. 1t will place New
York more than five thousand miles
nearer the great nitrate beds of Chill,
n nearly four thousands miles
nearer to Valparaiso. The distances to
most continental points are approx
mately a thousand miles nearer by
way of the Tehauntepec route than by
the Panama canal. But, inasmuch as
the handling of cargo out of one ship
and into another at Tehauntepec costs
$1.75 a ton, and in addition thereto a
land transportation of 1872 miles Is in
volved. little serious competition from
the Tehauntepec route is feared on
through cargo business. The cost of
getting a ton of goods through the
Panama canal actually will be from
forty-eight to sixty cents per ton. so
that, although the Panama route will
be the longer by a thousand miles 1t
will be cheaper in the end.
The distances saved by the panama
route to Asiatic ports from our W
gulf and south Atlantic seaboard
ranges from nearly six thousand miles
down to some two Thousand when
compared with the Suez route. The
distances to Australian ports from the
ports Of our Atlantic seaboard are
brought from two thousand to five
thousand miles nearer thar by the
natural route via the Cape of Good
Hope. ssg.