The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-21

be indirect. These indirect benefits
therefore are of special interest. Some
truly remarkable views on this point
have appeared In print. one newspaper
assured its readers that the opening OF
the canal would increase our trade with
Brazil. An eminently respectable pc
riodical gravely declared editorially that
when the great canal is completed
| these Caribbean countries will come into
vastly increased trade with the United
| States"
Maps are so cheap and abundant that
no one need depend on newspapers to
ascertain that Brazil Is as much beyond
| the influence OF the canal as the north
| pole. And as vessels from the Atlantic
seaboard Will have To pass beyond all
| Caribbean countries to reach the canal
1t Is difficult to comprehend how that
waterway il to influence our trade with
| them.
Such eminent authorities as those
just quoted are wont to assume that as
the Suez Canal is profitable, paying 20
per cent. dividends. Panama must nee
essarily be profitable also. In truth the
only point Of resemblance between the
canals is that both connect bodies Of
| water.
Panama is not on the line Of any
great commercial movement. hut Is far
distant from any such movement. While
the parallel Of SueZ runs through the
most densely populated areas Of the
world, no less than 81 per cent. OF the
earth's population lives north of PAN
anna. The Suez route through the Med
| iterranean. the Red Sea, Indian Ocean
by way OF India, Ceylon. Straits Settle
ments and the rich East Indies is
thickly dotted with ports having large
and lucrative traffic. The Panama Canal
will connect two ocean sOltudes
The worlds highway by way Of Sue7
Is amply supplied with Coaiing and re-
pair stations, for steamships, IKE other
machines, often need repairs. On the
Panama route coaling and repair sta
tons would necessarily be far apart
The nearest land in the Pacific on the
route either to China or to Australia Il
$500 miles from Panama, or one and a
half times the distance between New
York and Liverpool. The further a ves-
sci must steam before recoaling the
more fuel 1t must carry and the more
room required for fuel the less is left
for revenue producing cargo.
SueZ is a sea level canal that cost less
than a third of the outlay at Panama
hence the interest on the investment Il
smaller. The annual rainfall at Suez Il
9 inches; at Panama 10 feet. This, to-
gether with the fact that II Is locl
canal, will make the cost OF operation
and maintenance vastly more than a
SueZ Moreover. the chances Of della,
and OF accident in a lock canal are
greater than in a sea level waterway
and this affects insurance rates. which
Of course are necessarily reflected In
freight rates.
These various considerations. doubt
less, Influenced the conclusion of thu
New York Chamber OF Commerce com
mittee that sit Is doubtful whether thu
Panama route will be used ultimately L
as large an extent as the Suez Canaf
and "as regards trade for the Far Eas
II is. somewhat problematical, as the dis
tances across the Pacific are very great
necessltau,ng large portion OF thu
steamships room being taken for coal
there being so few coaling stations II
the Pacific. This will add materially e
the cost of Far East voyages"
Suez has no railroad competition
Panama must compete with sever
highly developed transcontinental rail
roads In the United States and three II
Canada. II may help to appreciate tn
significance OF railway competition L
recall what the completion of the hrs
Unconstitutional railroad did to the oil
Panama route.
, The first through route to the Pacif'
was by way Of Panama. In 1863 tn
Panama Railroad transported freigh
valued at s70,202,02 A year after tn
Union Pacific was completed the traf
fc at Panama had shrunk to valua
ton OF S1S,594,255. Rates between New
; York and San Francisco, via Panama
were 80 to 80 per cent. lower than b,
the al rail route, yet in spite of thu
huge differential the traffic of the Pan
anna route dwindled steadily until II
: 1898 its value amounted only to s4,Ss7,
2s9.
= 1t must be remembered that the Pan
anna has always been deep water rout'
except for the transfer across the 18th
mus, and that the completion OF tn,
canal will not alter the conditions oil
the ocean part of the route or affec
the route thereon. OF the through rat,
, the Panama Railroad received less thar
} 50 ton. The difference between cana
tolls and the old railroad rate is too
slight to make any appreciable DIFF
ference in the new through rate. Ye
this trifilng difference represents thu
total saving on through traffic to be &C
complshed by the canal.
, Railroads have been fairly revolution,
, ICED since 1870. and even since 1898. II
the crude lines OF early days could al,
} most put the Panama route. with 1t.
, hi9 differential. out OF business. what
will the railroads OF to-day, after years