Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-10-14
Points Out Panama
Continued from Page one)

NSSbAiii6Vo TWIN GASV SuSy
Ford he recites the verbatim testi-
mony of Mark w. Potter. receiver
of the st. Paul system. before the
interstate commerce commission in
New York on July 81. Mr.. Potter not
only said the Panama Canal had
been over-emphasized as an explain
alton of the adversely of northern
lines, but that the effect Of the Canal
had been to develop the Pacific coast
as a whole.
The striking testimony given by
Potter was not generally published,
its significance not having been I'M
derstood by the reporters who cover
ed the hearing for The Associated
Press and New York newspapers.
For years the inter mountain region
has been contending for lower rates,
| based upon the lesser mileage involv-
ed as compared with coast cities.
The arguments from the intermoun-
tain territory were combatted by the
claim that the Panama Canal COM
petition made necessary the appar-
ent discrimination in favor of the
longer haul to the coast.
When Mr.. Potter, replying to a
direct question, .uneQuivocally sup
ported the denial by. the intermoun-
tain points that Panama Canal COM
petitlon was a reasonable bar to their
| demands for a rate structure based
on the length of haul, the forces led
by the Spokane chamber and their
associates in other cities Of the reg
| ION were highly elated. Disappoint-
ment at the failure of reporters to
grasp the meaning of this evidence
resulted in Mr.. Ford making a state
ment calling attention to the Potter
testimony. The question and answer
which strikingly brought out the in
formation regarded as of highest
Importance TO the financial and
transportation world, were as fol-
lows:
Q.:"Do you believe that the con-
struction and operation of the Pa
mama Canal has tended to diminish
the traffic and revenue Of the st.
Paui Railroad system?"
Mr.. Potter: II think the Panama
Canal as an explanation of adversity
OF the northern lines has. been very
greatly over-emphasized. am not at
all convinced that the northern lines.
or any northern line, including the
81. Paul, would be better off today If
the Panama Canal had not been
constructed. / do not think the st,
Paul would have been better off.
You can see business that is moving
through the canal and you can reason
that the roads would have it if the
canal were not there. But perhaps
the business would not be there or
perhaps other business would not be
there. l haven't any doubt but that
the effect of the Panama Canal has
been to develop the coast as a whole,
promote the prosperity Of the coast,
and ] think, by and large, the rail-
roads have been compensated through
benefits from the Canal which quite
take care of any debts.
There have been times, Of course,
when the carriers have felt shock
l would put 1t that way. During the
war there was no business through
the canal. There was demand for
ships for the transatlantic trade all
over the world. We all know the pric-
es to which bottoms went. They
could not afford to use them in in
ter-ocean service through the canal
They went to Europe and other plac-
es. The result was that all the bust
ness went to the railroads.
when the war was over and the
depression set In, almost overnight
the prices of steamships went to the
dogs. Almost overnight you could buy
a steamship for 25 per cent of what
you could have bought it for the day
before. The result Of that was that
vessels could be bought to put into
this canal service from coast to coast
and vessels were available that had
no other business, and they rushed
out there and competed with rail-
roads. That sudden onrush of those
ships did take away business and did
cause a shock to the northern roads.
But considering it by and large,
do not believe the Panama Canal Is
a detriment at all, and think as an
explanation / do not take any stock
In it as an explanation, even OF the
st, Paurs disaster. That is Just my
opinion. There are others who are
just as competent and perhaps more
competent to form any opinion than
am, who take the other views