PANAMA CANAL.

Dominion, Volume 5, Issue 1539, 7 September 1912, Page 5

PANAMA CANAL.

PROPOSED TARIFF/.

MORE ABOUT RIGHTS.

SERVICES AT BELOW COST. By Tolottraph— l'rcss Assuciation-Copyrif.-lit (Kec. September 7, 0.20 a.nij Washington, September 0. According to data prepared by Sir. ,Ti>linsnn, a special commissioner, on ilio l'iinaimi Caniil Bill, tho ivliolo of tho American coashviso trallic likely lo pass through the canal when it opens will lie u million tons a year. During tho following five years he estimates an increase to a million ami a half tons. Mr.. Johnson is inclined to the belief tliut British and other foreign commerce' will bo obliged to bear a ten per cent, additional burden over tho amount, pay. able it Americans were, not exempted. Mr. Johnson points out that a proportionate share of this burden will be Irarno by American fillips, which, consequently, will then be on a precise equality with foreign ships. Ho suggests a 4s. rate for the first year the canal is in operation, in order to compete- with tho Suez Canal, on the basis of ten millioni tons of business. Tho yearly incomo will bo entirely infldequate to meet tho charges for interest, sinking fund, and sanitation, and tho canal will consequently l>e operated by the United States at a heavy loss. Mr. Johnson claims that the services to be granted to foreign ships oe the basis of a 4s. flat Tato would be quite Ijclow the cost of the services, and'consequently no discrimination would bo imposed on foreign vessels. AMENDMENT UNLIKELY. A SENATOR'S VIEWS. (Rec. September 7, 0.20 p.m.) London, September 6. Senator Chauncey Dopew, of tho United States, in an interview, said he did not think the Panama Bill would be amended or arbitration adopted. America would certainly be beaten if arbitration were adopted. AUSTRALIAN CORRESPONDENCE. (Rec-. September 7, 0.20' a.m.) Melbourne, September 6. Correspondence from the British Government with respect to the Panama Canal tolls has been tabled in tho House. SIR EDWARD GREY'S VIEWS. London, September 5. Sir Edward Grey, Secretary of State for Foreign Affairs, in. a letter to tho Newcastle Chamber of Commerce, rejects tho American argument regarding the Panama Canal that, inasmuch as the coastal trade is an American monopoly, the free passage of American coastal vessels would not affect foreigners. Ho points out that the Panama Canal Bill also contains provision for the free passage of American ships engaged in foreign trade, under certain conditions, and adds: '/If such a largo part of the trade passes through free, tho canal's earnings ivill be diminished, and consequently general trade will be unduly taxed."