The Birmingham age-herald., 1914-03-28

nual charge to meet interest, sinking fund requirements, cost of operation and maintenance of the Panama canal would be about $l6,045,000. President Taft em- plcyed Prof. Emory R. Johnson at U salary of S100o month and expenses, to estimate the probable tr..ffic through the Panama canal and report on fair rate of tolls to be charged. Professor Jehn- sch estimated that the total shipping that would utilize the canal by 1915 would amount to 10,500,O00 net tons and that but l.l6O.Oo0 net tons would be coast to coast ran1c, which amounts to Il per cent of the total estimated tonnage going through the canal next year. If the law remains as it is today there wifi be about 9s40- OOO net tons of, traffic on which tolls will be collected and as the rate of tolls fixed by the proclamation of President Taft amounts to s1 p per net ton. the annual revenue for next year would amount to Sll ,NS,ooO without making any charga Whatever on coast to coast vessels.
 "Deducting S4,000.Q00 for the cost of operation and maintenance will leave over s7,60O.000 to meet the interest charges on money expended, which amounts to nearly ? per cent As the tonnage through the Panama canal will unouestionably increase in the fu- lure, We can expect within the near future to receive the cost of operation and maintenance together with at least a 5 per cent return on our investment, without lowing any charge whatever on our coast-to-coast ships.
 Now. let us see what treatment the ships of the world receive at the Suez canal This canal is owned by stock company and is under the virtual con trol of the British government. which since 1Sg5 has owned 176602 of the 379,421 shares of tho capital stock ac- rs,-,1l . | n O canal was opened in 1869. It is 103 miles long and 1T hours is required for passage through it as against 54 miles at Panama and passage through it of less than 12 hours. The present depth of the SIcz canal is 2S feet as against Al feet of water in the Panama canal. During 1910 the Suez canal handled 4533 vessels having a total tonnage of l6,5Sl ,S9e net tons for which service the canal company received s25,160, 400. The cost of operation and maintenance was $3,S57, 4o5; payment for fixed charges and for retiring capital ob- legations amounted to S6.O72,6 the company earning net profits for 1910 of $15,90S. f19. paying a dividend of 31.6 per cent to it's stockholders. Up to the end of the year 1910 the expenditures on the Srez canal had amounted to $126,642.40e and the outstanding capital obligatf sns amounted to only $92, 4S4,- 544. The tolls charged on the Suez canal are now $1.50 per net ton on ships with cargo end S2 cents per ton on ships in ballast and a charge of s1.93 each for passengers older than 12h years of age.
 Britain Treated Fairly
 I make this comparison to show the absolute fairness with which we have treated British and other foreign yes sels in the way of toll charges as com pared with the treatment that our own ships receive in the Suez canal We charge Sl.20 per net ton as compared to the British charge at Suez of $1.30 per net ton. Our canal cost 375,000.- 900 as compared to the cash eXpendi- lures at the Suez canal of less than $121. ,00t. We give better service. passing q ship through in less than 12 hours as compared to IT hours on the Suez canal, the present depth of the Suez canal of 2S. feet as compared to 41 feet n the Panama canal.
 'The distance saved by ships going through the Panama canal from New is 5000 miles. From New York to ports of west coast of South America is 500o miles. From Europe to Pacific ports in North America is coco miles, in South America 2600 miles
 Purpose of Provision
 'The purpose of Congress in providing in the act for the opening, maintenance. protection and operation of the canal that no tolls shall be levied upon vessels en- gagged in the coastwise trade of the Uni