The Hawaiian gazette., 1915-09-21
CANAL COAL mt
BY INTERlSLAND
View York American, Lamentinu
Over American Merchant Ma
rine, Predicts Big Business

Use Of American coal at the Panama
Canal may be decreased from 6ftccu
to thirty per cent by competition OF
the Inter Island steam Navigation
Company at Honolulu. So saws the
| New York American, which makes the
prediction in connection with lament
over the low state Of American mer.
chant marine and prevailing high rates,
which permit Honolulu to get Austria,
lian--and Japanese coal. more choaply
than American coal can be got 10 Pan.
anna. t.... r.
The article really is an argument
for suspension Of the eoastwise laws.
In reading the article, Il would be
well to recall the statement made here
September 8 by Captain RedIiug Of
the British steamer Highbury that tho
United States government was ship
ping coal to San Francisco and Bre-
! merton in British bottoms.
What Il Says
1 The Americans article follows:
Coal men interested especially in
companies that ship TO tidewater for
trans shipment for either coastwise or
export trade, were very much interest
ed in the news from Honolulu stating
that the Inter Island Steam Naviga.
tion Company had closed contract
with the O. w. Hunt Company Of New
York for the construction Of eoaling
station at Honolulu with capacity Of
10000 tons of coal, and to cost in
excess Of 100000. -
The purpose of this plant is TO sup
rly bunker Goals to steamers that use
the Panama Canal. The interesting
part Of the project that local coal
people are discussing is that the plant
win naturally carry Australian coal.
which viii be sold at such low
price as to take away good part Of
the bunker trade that was expected
to be done. on the Canal and in Amer:
lean Goals gEE
''It is a sad state of AFFAIRS said
well known coal man, chat in Ha-
waii, an American possession, Amer
lean firms are prevented from doing
business because of our navigation
laws. =. ..tt-
American ship Rates High 49,. H..
1--WE can only ship coal to Hawaii
in American bottoms. We can only
ship coal through the Panama Canal.
built by our money, and upon which
tolls must be paid. Freight rates in
American bottoms to the Pacific are
at present, and have been for manv
wears, higher than the rates at which
foreign bottoms can be obtained.
consequently. the Hawaiian pleut
when completed will carry large stocks
of Australian coal. due to the fact
that by the use OF foreign bottoms and
the absence of tolls, they can name
prices that American coal shippers can
not meet, because of the conditions
named. LA Y.
"Just how much the Bawaiian plant
will affect American Goals can at the
moment, only be estimated. Ill \,
cat the Canal now, bunker REQUIRE
ments of steamers using the water
way, are between 10000 and 10000
tons per month, and are rapidly in,
creasine.
Affer Is Coal Sales a. F
1.-THE Panama Railroad will open
bids in New York soon for 100000 to
100000 tons of coal to be carried on
the Canal it being estimated that a
TONNAGE of around 100000 tons will be
needed during the next twelve months
for bunkerihg the ships that pass
through the Canal and require bunkcrs.
GAS soon as steamship owners find
that they can obtain Australian Goals
cheaper at Honolulu, they will cut their
Canal purchases to the least minimum.
"Tt is possible that the use Of Amer,
lean coal at the Canal may be decreased
from fifteen to thirty per cent, If not
moro. by the new competition.
"This loss OF tonnage affects not
only the American coal producer, but
the railways that run from the min"s
to tidcwatcr as well, as the Underwater
rate is $1.40 per TONI