PANAMA CANAL.

Taranaki Daily News, Volume LV, Issue 95, 7 September 1912, Page 5

PANAMA CANAL.

TO AVOID DISCRIMINATION. AN EXPERT'S VIEWS. By Cable—Press Association —Copyright. Received 7, 1 ajii. Washington, September (i. According to data prepared by Mr. Johnson, special commissioner to Panama, the whole American coastwise traffic likely to pass through the canal when it opens will be a million tons. During the following five years he estimates the increase will amount to a million and a-half tons. Mr. Johnson is inclined to the belief that British and other foreign commerce should be obliged to bear ten per cent, additional burden over the amount payable by Americans if the latter are not exempted. He points out that a proportionate share of this burden should be borne by American ships, which consequently would then be on precise equality with foreign shipping. He suggests a four shillings rate for the first year the canal is in operation in order to compete with the Suez Canal. On a basis of ten million tons business yearly the income of the Panama Canal would be entirely inadequate to meet the charges for interest, sinking fund, and sanitation of the canal. Consequently ■ the canal would be operated by the United States at a heavy loss. He claims that the services granted to foreign ships on a basis of four shillings flat rate is quite below the cost of the services afforded. Consequently there could be no discrimination imposed on foreign vessels. ARBITRATION UNLIKELY. ! Received 7, 1 a.m. London, September C. < Mr. Chauncey Depew, interviewed, said he did not think the Panama Bill would be amended or that arbitration would lie adopted. America certainly would be beaten if arbitration were adopted. > EFFECTS OF TIIE BILL. | . London, September 5. 1 Sir Edward Grey, in a letter to tlic Newcastle Chamber of Commerce, rejects the American arguipent that inasmuch da' the coastal trade,is an American monijpoly, a free passage through the canal for American ■ coastal vessels does not affect foreigners. vHe points out thajt the Bill also contains provisions for ti i free passage for American ships engaged in the foreign 1 trade under certain' conditions. J . I ne adds that if- a Irir'ge part of tlje I trade passes free,- the earnings of tlje canal will be diminshed, consequently tlje ' general trade will be unduly taxed. ; '