The Washington herald., 1914-04-25
GOETHALS FOR
TOLLS REPEAL
Message from Canal Builder
Feature of Senate
Hearing.
SAYS REVENUE Is NEEDED
Main Contention Is that Exemption
Would Benefit Boat Lines and
Not Shippers.

The feature Of the hearing on the Pan
anna Canal tolls bill yesterday was mes
sage from Col George w: Goethals, IN
which he put himself on record in favor
of the repeal of the free tolls clause ana
gave his reasons for IL.
The message was dated Culebra, April
%, and was sent to Mai. S. c. Boggs
of Washington TO be delivered to Sena-
tor Simmons. 1t WAS as follows:
My views on the economic side Of
| tolls question follow:
Government will expend SSi5. 00o.0oo for
canal and intends to charge for its use.
| Basis of tolls given in Emory John
ston's report on Panama Canal traffic
and tolls, pages l93. 1874 and 1856. These
figures should be corrected for operating
expenses, which will be $4,000, includ-
ing depreciation.
should Pay Indebtedness.
81 believe tolls should pay outstand-
ing indebtedness. fixed charges, and
operating expenses. leaving amounts ap-
propriatcd from current revenues 10 ne
contribution of the present generation to-
ward canal and because OF unknown
futu re conditions not burdening posterlty
for remainder ROnd issue 10 date under
canal acts, S13i 63l $50; interest on these,
approximately $4,000; annual amount
to be set aside for redemption OF bones,
81. 80 900: operation and maintenance
& 800 900; annual payment to Panama.
sa5a 900 Amount TO be secured annually
through tolls is. therefore. Sl.S0OSO. II
additional bonds are issued these hGures
should be changed accordingly.
To secure this amount through tolls
il is necessary to charge all shipping
as indicated ir report quoted Estat-
lisEed steamship companies fix rates
after conference. and as they are in the
] 4 rt~ft1 N
est rates the traffic will bear. These
rates will be Independent of tolls. II fol-
lows that exemptions from tolls VIII not
give cheaper rates from coast to coast
10 itber shipper or receiver but will in
crease profit TO shipping companies.
wonId Re Subsidy.
1.-The same is applicable to rates from
interior points to either coast. Agree
ments will be made between railroads
and ships for through rail and water
rates. same as at present and rates oi-
vided between interests as per agree
ment Again exempted tolls vii! not give
lower rates to shipper or receiver.
Therefore, free tolls to vessels en-
gagged in coastwise trade result IN SUD
sidy to a class of shipping already iulIy
protected and not in need OF SUBSIDY
do not believe in exemption of tolls for
amounts to a subsidy TO class OF snip
ping and will benefit stockholders ana
not shippers; second, because this canal
will need all revenue 1t can get TO pay
its current expenses and indebtedness
This was to have been the last day OF
the hearing under the arrangement, but
Chairman OGorman announced that
number of witnesses, who had come to
Washington at the request Of the COM
mittee, would be heard.
Among the witnesses heard today were
w. II. Randall. a ship owner of Boston,
and Henry Allen, Progressive candidate
for governor of Kansas.
Mr.. Randall. who is connected with
the Emory Steamship Company and the
Shawmut Company, said that his firm
had let contracts for the building of two
coastwise steamers. to cost about SOOOO.
with the understanding that tolls on
coastwise shipping were to be exempted,
but since the repeal of the tolls eNemp-
ton law had been foreshadowed, his
company had suspended work on the
vessels.
Mr. Allen, of Kansas. said that the
interests of his part of the country de-
manded free tolls for cOastwise shipping.
as a means Of regulating rates on trans
continental railroads.