Evening star., 1914-04-25
MAY FINISH TOLLS
HEARINGS TODAY
Senate Committee Then Hopes
to Get Busy on Final
Report.
STILL BELIEVED TO BE
VERY EVENLY DIVIDED
Testimony Favoring Exemption Of
Coastwise Vessels Given by Pa
cific Coast Witnesses.

The Senate interoceanic canals commit
tee today began what promises to be the
final day Of hearings on the Panama ca
nal tolls repeal bill.
Every effort will be made by the COM
mittee to conclude the hearings before
tonight, and then the committee will gel
dewn to work upon a report to the Sen
ate
The committee, 1t Is believed, is still
very evenly divided on the tolls question
The witnesses before the committee to-
day included Joseph N. Teal. Oregon: w
D. Skinner. Seattle, Wash; W. r. Wheel
er, Russell Dunn. Willis Booth and Elmer
E. Chase of California, and r. II. Phil
lips of Washington, D. C.
Exemption Urged.
The first witness before the committee
today was Willis Booth Of Los Angeles
a banker and machinery merchant Mr.
Booth told the committee that II the
exemption of coastwise vessels from the
payment Of tolls was retained. he saw
prospects for a great development fol
the merchant marine Of the United
States. Only by making the canal free
to American coastwise vessels. he said
could it be possible to get competition
in the traffic. He insisted that there
was no danger. with free canal,
of exorbitant rates being charged by
means of combinations or conferences
for If such rates were made, 1t would
be possible for the producers to charter
vessels Of their own.
Goethals Favors Repeal.
At the afternoon session of the commit
tee yesterday Senator Simmons of South
Carolina laid before the committee a
letter from Col George W. Goethals.
governor of the Canal Zone. advocating
the repeal Of the tolls exemption clause.
The letter was sent from Culebra April
81
Col. Goethals discussed the matter from
an economic standpoint He said:
Government will expend 1915, ,O00. .00O
for canal and intends to charge for its
use Basis of tolls given in Emory John
ston's report on Panama canal traffic
figures should be corrected for operating
expenses, which will be $500. 900, includ-
Ing depreciation.
IT believe tolls should pay outstanding
Indebtedness, fixed charges and operating
expenses, leaving amounts appropriated
from current revenues to be contribution
of the present generation toward canal,
tions not burdening posterity for re-
mainder. Bond issue to date under ca
nal acts. S134. .631 $50; interest on these,
approximately 3.2OO.O 900: annual amount
to be set aside for redemption of bonds,
So. 3.25O.0O0; operation and maintenance.
$5,500000: annual payment to Panama.
$25O,O0O. Amount to be secured annually
through tolls is, therefore, 1850. 600. II
additional bonds are issued these figures
should be changed accordingly.
Would Charge All Shipping.
ITO secure this amount through tolls
1t is necessary to charge all shipping
as indicated in report quoted. Estab-
after conference, and as they are in the
business for profit. will demand the high
est rates the traffic will bear. These
rates will be Independent of tolls. 1t fol-
lows that exemptions from tolls will not
give cheaper rates from coast to coast
to either shipper or receiver, but will in
crease profit to shipping companies.
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 di-
vided between interests as per agree
ment- Again exempted tolls will not give
lower rates to shipper or receiver.
Therefore. free tolls to vessels en-
gagged in coastwise trade result in sub
sidy to a class of shipping already fully
protected and not in need of subsidy. 1
do not believe in exemption of tolls for
coastwise trade: first, because this
amounts to a subsidy to class of ship
ping and will benefit stockholders and
will need all revenue it can get to pay
its current expenses and Indebtedness"