Milford chronicle., 1950-09-08
IT MEANS
The Panama Canal
Toll Dispute
BY CLARKE BEACH
AP NeWsleatnres

- S-TNNfNE 9EACH
AP NeWsleatures
WASHINGTON - President Tru-
man decided back in March 194S
that there ought to be a little hike
IN the toll rates for the Panama
Canal. '''' q
Canal Zone expenses have gone
/ up a lot since the last toll rate rise
in 1948. '''0 'i'e
Toll rates in the privately opera
ted SUez Canal have been raised
from % Egyptian piastres in i9SS
10 81 plastres. The President an
nounced that on October 194a
Che rate for the Panama Conoi
would rise from 80 cents to 81
per ton for laden ships.
But the rate rise never hoe
gone INTO effect. It has become in
vowed in one of the stOrmiest con
troVersies now raging in the CO..
iIaii,L,lnVolylng such issues as the
DuIIulng OF new canal and reor-
ganization Of the canals admin.
istratlye and operating set-un
Al the suggestion of CONGRESS-
the president has repeatedly most
pOned the effective date of tbe rice
WhlIe congress studied the issuos
NOW II is set for April /. 1851
shipping interests DrOtestod -
congress when the raise was erSt
atI.'1 aHnounced. They said ship oper-
S Seo[s were barely able to make
Doth ends meet and some were
IOsIhg money. Besides, thew were
ALREADY being charged too mucb in
IOiis' they contended, because in
setting toll rates the government
mace them pay for items which
should be charged to national de-
The House Merchant Marine
committee was instructed to make
an investigation. 1t recommended
lnat the whole theory of Panama
CanaI tolls be examined. The err
rent practice is to charge tolls
winch will defray the costs of
operating and maintaining tho
canal and Canal Zone facilities
o1eslOes giving the government {
per cent return on its invest
nent. 40 Invest !
But nobody knows the true on
expenses of the canal the
llVestlgators pointed out. becausel '
mere is no business accounting !
system. The Hoover COmmissio1
lsked a reorganization of canal I
to simplify ac- G
AT the suggestion of the HOuse t
the President had the h
ouuset Bureau make a study. II +
recommended reorganization s
IuDstantially along the lines of u
ne Hoover Commission Dlan 4 n
III is now in Congress. b
mere are some of the argu-
lents brought out in hearings nm a
he bill: % vi S
shipping men contend that half il
ne interest charges sbOuId 6a N
AID as national defense. The in R
crest charges, about $4,000. 600 a
ear, account for rs cents of the d,
)-cent toll. - '"e vi
Cross-cOntinent railroad men NJ
1 the other hand, say that no
lcH allowance should be made for Vi
atlOnal defense, thar ii would OF
U1Ouht 40 TO a subsidy for shipping no
Inc subsidy, they add, S,Ould eG an
IOrelgn vessels as much as An WI
lcan ships. Treaties require be
ual toll rates. 'i'e 90
A new canal also is involved TT
Ill toll rates be based on inter mt
/ charges on that vast new can Hi
i outlay? NJ;
II so, the rise might be fantas- wi
;. A government study in I945
the construction of Oh
sea-level canal, primarily for de- wi
1se purposes. It estimated the II.
st at $2,482,OOO,OOO. Since then M;
any prominent engineers have
estioned the advisability of such ei'
canal and have said the cost Sc
ght be as high as $4,000 ,OOO,- tel
0. pa
At present U. S. government su
ips use the canal toll-free. The La
bill provides that
ey shall hencefOrth pay tolls or In
at the canal shall otherwise be
Sol
This is a step in the right di- Su
;tiOn, say the shipping men, but ed
ey feel that under the plan the
vernment still wouldn't be nav ma
it's full share for national de- las
lse.