THE PANAMA CANAL

Taranaki Daily News, Volume LIII, Issue 219, 24 December 1910, Page 8

THE PANAMA CANAL

COMPETITION WITH SUEZ. INTERESTING FORECAST. Some intensely interesting speculations on the effect upon international trade of the Panama Canal have been started by a magazine article written by Rear-Admiral Robley D. Evans, U.S.N. The most novel theory raised by "Fighting Bob" is that the Panama Canal will be forced into competition with the Suez Canal for business to the Orient. He also expresses fche conviction that the amount of international trade—that is, trade originating outside of America — will be disappointingly small and entirely unremunerative. Another conclusion of the admiral is that the canal will give but a small impetus to the foreign trade of the United States.

These pessimistic forecasts, coming from the pen of an admittedly well versed and thoughtful man, are being discussed with vigor, but opinion does not appear to coincide with tine admiral's views. As to the competition with Suez, Admiral Evans points out that the British Government may give differential rates, and can even make any particular class of trade free, if it chooses, thus affording most effective protection and encouragement to British shipping by that route to the Orient. The admiral appears to foresee a day "when the two I Governments will be bidding against each other, like a couple of shopkeepers.

The answer is made to Admiral Evans that even without the canal a great volume of merchandise is going to China and Japan from eastern America. All these goods must now either he taken around South America by ship or be three times handled by transportation across the continent by train and across the Pacific by ship. "Yet we manage to compete pretty successfully :as it is, and how much better will the conditions be after the canal is completed!" exclaims one American business man, in discussing Admiral Evans' theories. As to the view that ibut little impetus will be given to America's foreign trade, it is pointed out that the canal will make it possible for the manufacturers of the Atlantic States to send many, products to the Orient which they are now unable to do, and for the Pacific Coast States to ship largely to Europe. I In the course of Hs article, Admiral Evans states that the chief benefit of the Panama Canal to America as a nation will be in lowering freights and equalising transportation conditions between different sections of the country; that the methods and success of the railroads in the past in suppressing water competition justify the fear that the i same procedure will be invoked to prevent the canal doing its true work; that steamships using the canal may be controlled by the railroads, and rateskept so high as to protect the rail routes in their high charges; that in order to ensure real competition between the canal and the rail routes the waterway should be toll free; that, if it-is made toll free, and if the necessary regulations are enforced to ensure absolutely free and honest competition, there will 'have to be 'built, to handle this canal business, a great number of fast cargocarrying steamships; that these ships would sail under the American flag, and would be a most valuable auxiliary to the navy in time of war. In the course of his article, Admiral Evans stated that the railroad corporations have obtained control of practically all the harbor facilities in every large port on the Pacific Coast except that of Los Angeles. Though there.. is , some truth in the statement, it is not a fact as far as San Francisco is concerned. All water-front property' at this port is under control of the State Government.