Panama Canal traffic and tolls

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Material Information

Title:
Panama Canal traffic and tolls
Physical Description:
vi, 490 p., 12 p. of plates : ill., maps, plans ; 32 cm. +
Language:
English
Creator:
Johnson, Emory R ( Emory Richard ), 1864-1950
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D. C.
Publication Date:

Subjects

Subjects / Keywords:
Panama Canal (Panama)   ( lcsh )
Suez Canal (Egypt)   ( lcsh )
Kiel Canal (Germany)   ( lcsh )
Manchester Ship Canal (England)   ( lcsh )
North Sea Canal (Netherlands)   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Includes notes on the finance, traffic, etc., of the Suez Canal, the Kaiser Wilhelm Canal, the Manchester Canal, and the Amsterdam Canal.
General Note:
Appendices: I. Report on the industrial and commercial value of the Isthmian Canal, by Emory R. Johnson, Ph. D. (reprinted from Report of Isthmian Canal Commission, 1899-1901) -- II. Tolls and other charges imposed by the Suez Maritime Canal Company -- III. Statute of the German Empire concerning charges for the use of the Kaiser Wilhelm Canal, June 20, 1889 -- IV. Tolls and other charges for the use of the Kaiser Wilhelm Canal -- V. Schedule of port charges and demurrage fees imposed by the Kaiser Wilhelm Canal administration -- VI. Manchester Canal: "ship dues" and other charges payable by ship owners -- VII. Manchester Canal: "tolls" on merchandise and other charges payable by merchants -- VIII. The Panama Canal act of August 24, 1912.
General Note:
Includes index.
Statement of Responsibility:
by Emory R. Johnson.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 03047675
lccn - 12029104
Classification:
lcc - TC774 .J6 1912a
System ID:
AA00000277:00001

Full Text

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EMORY


JQHNSON


SPECIAL COMMISSIONER ON PANAMA CANAL
TRAFFIC AND TOLLS


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WASHINGTON, D. C., August 7, 1912.
Sm: I have the honor to submit herewith a report upon Panama Canal Traffic and Tolls. The report is
made pursuant to your instructions of September 1, 1911, which were to bring "up to as late a date as
practicable the data contained in the Report of the Isthmian Canal Commission for 1899-1901, and also to
formulate rules and regulations governing the measurement of ships going through the canal, and to make
an investigation and recommendation regarding the tolls to be charged."
It was deemed advisable to prepare two reports, one upon Traffic and Tolls and another upon The Measure-
tment of Vessels. The latter report, which is in course of preparation, will explain the regulations governing
the measurement of vessels in the United States, Great Britain, and Germany, and at the Suez Canal. The
report will also include a set of rules recommended for the measurement of vessels that are required to pay
tolls for using the Panama Canal.
The conclusions reached as the result of the investigation and the recommendations that follow from the
conclusions reached are presented in Chapters XII and XIII of the following report. It is recommended that
merchant vessels be required to pay tolls upon net tonnage so measured as to express their actual earmng
capacity, and that warships be charged tolls based upon displacement tonnage. The rates of toll recommended
are $1.20 per net ton for merchant vessels carrying cargo or passengers, with a reduction of 40 per cent in the
rate for vessels in ballast, and 50 cents per displacement ton for warships. It is recommended that no tolls
be levied upon passengers.
In-submitting this report I wish gratefully to acknowledge the aid I have received from my assistant,
Grover G. Huebner, Ph. D., University of Pennsylvania. Without his help the task would have been more
laborious and would have taken more time.
Very respectfully, EMORY R. JOHNSON,


Special Commissioner on Panama Traffic and Tolls.


The SECRETARY OF WAR.


596 35


LETTER OF SUBMITTAL.


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ar j[E Distances via the Panama Canal and alternative routes- _ _---------- ............
J:I. Tonnage of the vessels employed in the commerce that might have advantageously used


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V.


the Panama Canal in 1909-10 .......... --.... ....
III. Increase in available canal traffic, 1899 to 1914-15 ... .. .... ..
The relation of the Panama Canal to the traffic and rates of American
V. The Suez Canal, its dimensions, and its financial and traffic history-_ _
VI. The Kaiser Wilhelm Canal, its traffic, tolls, and revenues ---- ---- -
TII. The Manchester Canal, its history, finances, and traffic-- ------.....
III. The Amsterdam Canal, construction, costs, and traffic. --------.-- --


railroads
-- - -


---- -
--.. -


Page.
3

19
37
, .Z-
89
105
117
131


PART II.-Tolls and Revenue.


IX.
X.
XI.
XII.
XIII.


The basis or unit
Coaling facilities
Relation of tolls
Panama Tolls I,
Panama Tolls II,


of toll levies upon merchant ships and war
and coal costs via the Panama Canal and
to the volume of traffic through the canal;
principles and considerations that should (
,rates of toll-gross and net revenue ......


vessels .........-------..
alternative routes_ -----
tolls the traffic will bear
control in fixing tolls_. -


* --
-- -


APPENDICES.


I. Report on the industrial and coiunercial value of the Isthmian Canal, by Emory R.
Johnson, Ph. D. (Reprinted from Report of Isthmian Canal Commission, 1899-1901)


Tolls and other charges imposed by the Suez Maritime Canal Co .....
Statute of the German Empire concerning charges for the use of the
Canal, June 20, 1889 .... --.... . .._....--..-- -- -- -- --.- .
Tolls and other charges for the use of the Kaiser Wilhelm Canal .. -
Schedule of port charges and demurrage fees imposed by the Kaiser
Administration -------------- .......__...


Kaiser Wilhelm


Wilhelm Canal


VI. Manchester Canal, "ship dues" and other charges payable by shipowners -....
VII. Manchester Canal, "tolls" on merchandise and other charges payable by merchants_
VIII. The Panama Canal act of August 24, 1912-- .. ..........------- ---------..
Index---......- ----------------------------------..-.----_..__.._____-___ _
V


CONTENTS.



PART I.-Traffic.


Appendix


401





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LIST OF PLATES.


LIST OF PLATES.

PAGE PLATES AND CHARTS.


Plate A.
Plate B.


Chart
Chart

Chart
Plate


Transcontinental rate groups..-.-. .........--. .---... .-. .
Rate zones established by Interstate Commerce Commission in
mediate western points_ .. ...-. .------. .......-..-.--..-...
Gross and net tonnage of vessels passing through the Suez Canal
Gross and transit receipts, net earnings, interest amortizati<
Canal, 1870-1911 . ----........-- ----....----------- -..
Administration, operating, and maintenance expenses of Suez Ca
Port of Ijmuiden....--....------- --------- ---.


adjusting rates to inter-

, 1870-1911......acing
on and dividends, Suez
........ -.-.....----------.
aal, 1870-1911.. __Facing
-- -----..-.......Fac;ig


FOLDED PLATES.

Trade routes and distances by existing lines and by the Panama Canal.
Points equally distant from New York and from Liverpool via the Panama and Suez routes.
Intercoastal steamship lines and water routes.
Suez Canal.
Suez Canal, types of cross sections.
Kaiser Wilhelm Canal.
The Manchester Canal.
The Manchester Canal and connections.
The Manchester port and docks.
Amsterdam or North Sea Canal.
The port of Amsterdam.
Coaling stations of the world.





























PART


ONE.


TRAFFIC.


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CHAPTER I.



DISTANCES VIA THE PANAMA CANAL AND

ALTERNATIVE ROUTES.


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CHAPTER


DISTANCES VIA THE PANAMA CANAL AND ALTERNATIVE ROUTES.


The Panama Canal is being constructed to shorten ocean routes. Relative distances via Panama and
other routes will mainly determine the use made of the canal and the tolls that may be charged without limiting
its traffic; hence this study of Panama tonnage and tolls should start with the tabulation and comparison of
distances by way of the Isthmian Canal and other routes between Atlantic and Pacific ports. The economy
resulting from the shortening of ocean routes is measured by the saving in the time vessels take to carry freight
or passengers from one port to another. Tolls will be paid by ocean carriers to reduce the time and expense
of performing specific transportation services; and, theoretically, the tolls charged for the use of the canal may
be made equal, or nearly equal, to the saving effected by the canal.
Distance and time of voyage between the ports of departure and destination are not the only factors deter-
irnbag the selection of routes. The longer of two routes may be the more profitable one if there be a larger
volume of desired traffic' to and from intermediate ports. Of two competing routes, the longer one may be
selected if it has the larger number of coaling stations and the lower costs for fuel. When the choice is between
the Panama and Suez routes, the relative tolls charged by the competing canals may determine the direction of
traffic. Lower insurance rates may influence carriers to select the route that exposes the ship or cargo to the
least risk.
In calculating the volume of traffic that will use the Panama Canal, and particularly in discussing the
effects which tolls may have in diverting shipping from the canal, due consideration will be given to the forces,
other than length and steaming time of alternative ocean routes, that give direction to the currents of ocean
commerce. The factors other than distance and time are merely mentioned in this connection to indicate
that they are not to be overlooked, although this chapter is devoted solely to a comparison of the Panama and
other routes as regards distances and the time required for ocean voyages.
The Hydrographic Office in the Department of the Navy courteously supplied all figures for distances


contained in the following tables. A blank form for each of the first 10 tables was submitted to the Hydro-
graphic Office which compiled the figures and checked them up with special care. The distances as stated
may be accepted as reliable and as revised to date--the end of 1911.
The 14 tables presented in this chapter are intended to show three things:
(a) The distances in nautical miles for full-powered steamers, between large commercial ports, including
calls en route at designated points. The purpose has been to give the length not of the shortest navigable
course, but of a route by way of one or more of the commercially important ports at which vessels ordinarily
calU. No attempt has been made to include all intermediate ports and coaling stations at which steamers call.
Some ships stop at many, some at but few places on the way between distant ports. In the case of each route,
the tables state what, if any, intermediate ports are included.
(b) The net reduction (stated in nautical miles) effected by the Panama Canal in the length of ocean
routes. The comparison, in each instance, is between the Panama and the shortest alternative route; but
when a course longer than the most direct one is largely used by commerce-as that from Europe to Austral-


asia around the Cape of Good Hope instead of the one via
pares the distances by way of each possible traffic highway,
(c) The net saving in days of steaming time that vessel
Canal. Having calculated the number of days a vessel ca
tamed pw many dollars a day's reduction in the time of


Suez--the discussion accompanying the table com-
y.
ls of different speeds can make by using the Panama
n save by taking the canal route and having ascer-
a voyage is worth to the owners or operators of a
1 19 1 I At .f - -. --


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PANAMA CANAL TMFMO AND TOTAL


Tn tw a of d al figuin arn for mautls m ie i,ONO ftmu) anal
(5,280 f For rentes via Panaatu length of th. oaul-41 nautical i


Canal Is rek at 87 nan to mite, that bei the dIM
rmnan and Red f atSe
The liia'n, for dlIsuo, a5 given a thte srtiou, do
whmIan Canal Commlnl of 19cl1, upon "The tnawdus
wh sh inpntap au Autaf sk report1 lutlwri
tk 43 natial nW% a th s Canal 88 se
11r-a-.-. iil] y reinak constant fron year to a arit The dr.*
(hanol at New York-may sliluly shorten route; or rEsp
their a vgutazr courts from ene port to eauohnr The 41st.
for Intance, WAS stated upon th Hydrographic O05.. char
of th chart makwten di stanc 5,202 ma and both Spur
On Pt. tn the pocket at nd of sh a repor, 1he mos
and the dam a ths and Use attemrative routes a


I not in .tatute or land miler
;iiles- ib included. The Sues


S5e eand n.iild lake. between the Medliie-


not qui agreni wt tlause in the report of ihe


II sand Ccu Value 4f
iprt of 1Q0, thi 1Iti Iga of
as However, the length ofta
dinj*ig of a ow harbor ents
tlt
-rimiart in MvIMAdoU may lb
anco from Nw York to San
bhz tow be,nml e,
w undoubtedly carrn I


th Lsitlimia,
thel Paulamna (
tli oceail rouul
ntes-- ars the

Irn ltiLro vima


Important route vi. the Paitamus Canal III
stated, Th map coutais ls iadoria


to a he found in the tables, but may well be consulted 6 wa tion wA the ash w.


i Canal
iaial was
e dome not

to modify

11 edition

re chirted
tion ithan


TraP ,-PDISTANORS (INJ NAUTICAL MILK) VIA PANAMA ANAL AND STRAITS OF MAGELLAN lETtWEEN EASTERN
ORT OF TlE UNITED TATE AND PORTS OF TUE WEST COASTS OF NORTH, CENTRAL AND SOUTH AMRI


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PAA CANAL TRFIC AND TOLLS


Tt table states the distances il nauticale miles, via the Panama Cana and the Straits of Magellan,
from 14 representative port of the Atlantic and Gulf seaboardse of the United Stats Portlani, Ma., tCo G1
venton, Tx., iildusliv -ito the Hawaiian Ilan tl anti to 12 acommincial centers oin toh Pucific coast of Noreth
and Souith A rmerica. The wet coat citi selected include Sitka, the chief port of Alai, Ia Port Tonwnerdl,
at the gateway to Puget Sound, Pfortland, the port oaf thlleCol b Valley, San FrancIsco ntd San Diogo for
entra and southern California, Acapulco, an important exican p rt, gUaysquUi aln ('allan, ltie chier trade
nter d of ~quador and Pru, Iquiqlue, one of the two large nitrate shipping pinia.W in northern C(ilo, VaTpliarno,
the main seaport of the central agricultural portion of (Indle, anCenl ro (Talchuano), thel only station on lote
wet coat of South America at wMch large quantities of local coal can hb obtained,
Corons I coated at 38 42' south latitude. About 200 miles farther south, at little less than 400 from the
Equator and nearly 1,000 mea from the Straits of Magellan in Valdvia, at the southern nlargin of the acommer
daly Important part of we t South America. Little, if any, trade cn e dLevelopldtl along the (hillan coast
south of 40. Punta ~renar on the Straitm of Magellan is now, andl any after lthe opening oft tle iPanama
Canal continue to be, an export city and a transfer andl ulply station of Somnc importance, but the corn-
m l others of western South America will always be northl of 40 soutLh latitudlo.,
A comparison of distance via anans m na n the Straits of Magellan betwoon the Atlanteitll nosaboardl of
tio1 United Stats and the Paci coast of North anl Soulth Anrerica can be more readily made from Table II,
which sLal.m the number of mile, by lthe alternative route., from Noew York, Norfolk, New O)rloeans, and Gal-
veston-four important commercial foci-to six representative Pacific parts:

T~as II-DISTANOB (IN NAUTICAL MILES) FROM ATLANT AN)D tGUIF PORTS OF THE UNITED ITAThS TO
PORTS ON THE WEST COASTS OF NORTH, 01CNTRAL, ANtD SOUTH AMICRICA,


eFft aownasendi. an 7annciagsla*o
SicPrmodagsco.4 44.44 4444,444 4 4
Sun 3aoe do Jsutezuuls..44444 4444444
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Colutish.. Irllr..li..n III.IIIIIII


fiota


New York vlia t

Pan.amt M agellan


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EUnatwioj iPsnwI MU plaBn,.

11,4W 4,4M8 14Zut$1

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II;MMIr r4894 11,044
5,992 4,045 tIN
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Th reduction aeffcted by the Panama Canal in the length of all-water routes between the Atlanrtlululf
seaboard of the United States and Pacific parts i shown below in detail in Table XI, The lintaneo from New
York to Ban Francisco, by way of the Strait. of Magellan, i 13,135 nautical mim, by way of Panamra 5,202
.4k Canal route bing 7,873 miles horter. The saving between Now (rleanl and San Flrancisco i greater<
8,868 nautical il-the Magellan rute bing longer and the canal route ilsorter from New Qcanloan tbha
from New York. The canal will reduce the distance from New York to the (Clilian nitrate port, lniqulqu, 5,1380
nati mile, to Vlparaiso 3,747 mile, to Coaronel 3,206, and Valivia about 2,00( hril., For Now Orleans
and other Gulf port, th reducti~ in Igreater.
Sc the beginning of 1907, trallo between New York and Pacific ports of the United Statos (including
Hawaii) has been handled in increaing volume by way of the Isthmus of Teuhuantelpn. lThe Arnoricanollawalian
Steamship Co. operates a flt of voeis between Noew York and u' wr Mexico anl another fleet between
San C~rz and San Fran o and Puget Sound, and between Salina (Crus and lHawaii. A railroad 112 sMtatuto
iles (1 na tical miles) in length connects Puerto Me xio and Salina (ru. T'le Teliantepc route and lt
n4rr e


Magella.t
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PANAMA CANAL TRAFFIC A


TAJw III.-DISTANCES (IN NAUTICAL MILES) FROM NEW YORK A
HONOLULU VIA THE ISTHMUS OP TEHUANTE


From-


New York........ ...................................................................................
New Orleans......................................................................................


The distance from New York to San Francisco is 1,016 nautici
Panama, and from New Orleans 1,573 miles shorter. To Honolulu, t


ND TO LSU

.ND NEW ORLEANS TO BAN FRANCISCO AND

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San Trancisco via-" ;-

Istmus of lsthmusof.




S--- . ....... .. 3, 110 ,, 6e3 4 55

al miles less via Tehuantepee than by w
the distance via Tehuantepece is 1,011 nauti


miles less from New York and 1,568 miles less from New Orleans. These differences in distance will not en
the Tehuantepec route to compete with the Panama Canal. The average cost of transferring freight from th
hold of a ship on one side of the Isthmus of Tehuantepec to the hold of a ship on the other side could had
be brought below $2.50 per cargo ton-the present costs are said to be more than this. A toll at Panaawof
$1.20 per vessel-ton, net register, would amount to about $0.60 a ton on cargo; and, thus, the cost of getting
cargo from ocean to ocean would be about $2 per ton greater at Tehuantepec than at Panama. The
double handling of commodities, with the unavoidable breakage and damage incident thereto, would further
place the Tehuantepee route at a disadvantage in competing for traffic against the through service without
breaking bulk, by way of the canal. Moreover, the time required to handle freight from New York to San
Francisco would be but little less via Tehuantepec than via the canal. As vessels require about two days to


discharge and two to load, the average detention
mus of Tehuantepec, will be about four days. A
a day; and, should another half day be taken for


of traffic, due to transfer from ocean to ocean across the Isth-
.t Panama, a ship can pass through the canal in less than half
coaling, the total detention will not exceed one day.


The Tehuantepec Railway may possibly have a fair volume of traffic after the canal is opened. Coastwise
trade for some.distance up and down the two seaboards will center at Salina Cruz and Puerto Mexico, and goods
will be transferred across the Isthmus, in part for sale in nearby markets and in part for shipment across the
sea. The Tehuantepec Railway will assist the development of southern Mexico and northern Central America,
and the railroad will, in consequence, handle an increasing tonnage.

TABLE IV.-DISTANCES (IN NAUTICAL MILES) FROM EUROPEAN PORTS TO PACIFIC PORTS OF AMERICA VIA
PANAMA AND STRAITS OF MAGELLAN.


Sita via San Francisco..........................................
Port Townsend via San Francisco................................
Portland via San Francisco ......................................
SBn Francisco....................................................
San Diego........................................................
Acapulco.........................................................


Irom-


Liverpool via--


Panama.
4,591


Magellan.
7,314

14,804
14,272
14,152
13,502
13,110
11,891


Hamburg via-


Panama.
5,110


Magellan.
7,695

15,185
14,653
14,533
13,883
13,491
12,272


Antwerp via-


Panama.
4,848

9,395
8,8s6
8,743
8,093
7,691
6,274


Magellan.
7,433

14,923
14,391
14,271
13,621
13,229
12,010


Bordeaux via-


Gibraltar via-


Panama.
4,376

8,923
8,381
8,271


Zeal'
Za19a3
",1Ea
s,8or


Magelhan.

18,383

13,s8

12,571
12,179











PANAMA CANAL TRAFFIC AND TOLLS.


The relative distances via the Panama Canal and the Straits of Magellan from Europe to the 13 selected
American Pacific ports are indicated in Table IV. Instead of giving distances frbm Plymouth, as is customary
in compiling such tables, the figures state the number of miles from four important ports so located that dis-
tances from them represent the distances from the leading commercial districts of northwestern Europe. The
effect of the canal upon the length of the routes from southern Europe to Pacific America is illustrated by
stating the distances from Gibraltar, the sentinel at the Mediterranean gateway.
The reductions which the Panama Canal will make in the length of ocean routes from Europe to Hawaii
and the west coast of North and South America are stated in Table XII. The canal will bring San Francisco
Portland, and Puget Sound ports, and British Columbia, 5,666 nautical miles nearer to Liverpool, 5,528 miles
ln to Antwerp and Hamburg, and will make Gibraltar 4,950 miles less distant. To Iquique, the principal ship-

ping point for nitrate-the tonnage of which is and will be larger than that of any other single item of traffic-
the canal route will be shorter than the Magellan route by 2,932 nautical miles for Liverpool, 2,794 miles for
Hamburg and Antwerp, 2,642 miles for Bordeaux, and 2,216 miles for Gibraltar and the Mediterranean ports
nonally. To Valparaiso, the canal reduces the distance from Liverpool 1,540 miles; from Hamburg and Ant-
Vp 1,402 miles; from Bordeaux, 1,250 miles; and from Gibraltar, 824 miles. Valparaiso and Coronel are
Sthe margin of the canal's zone of influence. The forces that will determine whether the traffic between
central Chile and Europe will move by way of the canal or through the Straits of Magellan are analyzed in
Chapter XI in connection with the discussion of the tolls the Panama traffic will bear.

bta V.-DISTANCES (IN NAUTICAL MILES) FROM ATLANTIC PORTS OF THE UNITED STATES TO YOKOHAMA,
SHANGHAI, AND HONGKONG VIA PANAMA AND SUEZ.


V


P dd ...........-


New York..... ..... -- -

B iadelphia-.....--...--
Balore...-....----.


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Norfolk.... ...............................


iaai.nnah......-..... C ......C
C le...........................C.
art'aa.... ............... ............
PeBacola................ ................


Mobile...........
ew Orleans......


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Panama.


2,229
2,185
2,017
1,989

1,9s44
1,822
1,687


1,859
1,260

1,392
1,419
1,438
1,542


Gibral-
tar.


2,992


3,195
3,3837
3,470
3,348


3,65
3,740

4,255
4,460
4,500

4,553
4,729


Yo


Panama,
San Fran-
and
Great
Circle.
7,781


kohama via--


Panama,
and
Hone*
lulu.
8,079


Suez.
Colombo
Singa-

kong, and
Shaha.
Moh 7l


Shanghai via-


Panama, Panama,


San Fran-
CISCO,
and
Great
Circle.



10,861
10,817
10,649
10,621
10,576
10,454
10,239
10,238
10,191
9,892
10,024
10,081
10,070
10,174
2 9


Hono-
and'
Yoko-
hamas.
9,120


11,349
11,305
11,137
11,109
11,064
10,942
10,727
10,726
10,679
10,380
10,512
10,539
10,558
10,662


Suez,
Colombo,
Singa-
pore,
and
Hong-
kong.
0,330

12,322

12,360
12,525
12.667


Panama,
San Fran-
cisco,
Yoko-
hama,
and
Shanghai.
9,674


11,903
11,859
11,691
11,663
11,618
11,496
11,281
11,280
11,233
10,934
11,066
11,093
11,112
11,216


Panama,
Hono-
lulu,
Yoko-
hama,
and
Shanghai.
9,972


Panama,
Bono-
lulu,
Guam,
and
Manila.
10,159


12,388
12,344
12,176
12,148
12,103
11,981
11,766
11,765
11,718
11,419
11,551
11,578
11,597
11,701


Sueo,
and
Singa-
pore.
8,478


11,470
11,508
11,673
11,815
11,948
11,826
12,070 *
12,143
12,218-
12,733
12,938
12,978
13,031
13,207


The distances by way of the Panama Canal and alternative routes between the North Atlantic and the
ports of eastern Asia and of Australasia are stated in a series of six tables, V to X. The tables are of especial


o; ,,in, cnnao l- ;naniala A tt i 0ts4.. n AV +lat nnhlnnn4nni aln 4)-ta Vnf njJfn nnn at Ar


From--


Hongkong via-


E*::jj
::E:
j::
""~
BE,: "


*.* ... *C *4 ..... -
*4*n --.- .......C....


A mrt ,,F~ .,, l- J- ^ tm--/ ,f'r/ti /l -





i:^"": lri ::1? ".




PANAMAh OANA TBACTFIC A^TD TO~LS


second, the distances from those points to Yokohama, Shanghai, and Hongkong via desioasted routes; an;
third, the through distances from the several 14 ports to Yokohama, Shanghai, aid Hongkong v~da esigae
ports of call. Distances are given for two courses from Balboa across the Pacific, one via San Fran~sc and i
Great Circle, so modified as to keep the course south of the Aleutian Islands, the other via Hondlu.
route from Balboa (Panama) to Yokohama by way of San Francisco and the Great Circle, it willbe obseed
is 298 miles shorter. The lengths are given for three routes from Panama to Hongkong, one via San anci
Yokohama, and Shanghai (which is the shortest of the three named), another via Honolulu, Yokohama, a~


thanghal, and a thurd by way of Honolulu, Guam, and Manila,
the one by way of San Francisco, Yokohama, and Shanghai.
The routes for which distances are given in Table V, and also
ports at which vessels regularly call. While not all of the ports
are included, enough intermediate ports are designated to make
erably greater than the lengths of the shortest possible routes
destination. Commercial, rather than theoretical, routes have
via Panama.
ni 1S -


The differences in the distances by


anghai,
zone.
via Sui
ew Orl
Hongk
ibles;
the Sue


United States and Yokohama, Shi
are well within the Panama traffic
1,876, miles less via Panama than
Panama route are still greater, N
Shanghai via the Panama route.
Suez routes as designated in the ti
the advantage of the Panama over


by the American Canal to Hongkong is si


the third course being 485 miles longer tMa

'in succeeding tables, are by way of the larger
Iat which vessels may, or frequently do, stop
the distances, as stated in the tables, consid
between the ports of departure and ulmtim
been chosen, both via the Suez Canal an


ray of Panama and via Suez from the Atlantic-Gulf seaboard of tie
and Hongkong are stated in Table XI. Yokohama and Shanghi
The distance from New York to Yokohama is 3,768, and to Shanghai
ez. In the case of cities south of New York the advantages of the
means being 5,705 miles nearer Yokohama, and 3,813 miles nearer
ong is almost equally distant from New York via the Panama and
and for the Atlantic ports of the United States south of New York
:z course is relatively slight. For the Gulf ports, however, the saving
ibstantial-1,919 miles for New Orleans and nearly 2,000 miles for


Galveston.


TABLB VI.-DISTANCES (IN NAUTICAL MILES) FROM THE ATLANTIC PORTS OF THE UNITED STATES TO MANILA
VIA THE PANAMA AND SUEZ ROUTES.


From-


Portland....... ............... .....-


Boston.............. .. .........-------------..--------.--------............................................
New York ............................................ ...........--.......................................
Philadelphia..-................................................................................
Baltimore............... .................................................................................
Norfolk...........................-------------------..............-------------------------.............. ....... .................................

Charleston.......---------------.......................... ............................................ ....
Savannah .............................. ............ ..................................................
Jacksonville.................................................. .............................................
Port Tampa............ ............. .......................................

Pensacola ....--..--.................................. ................. ...................................
M obile.... .................--..-.............. .... ..................... ........ ..- ................


To Manila via--


Panama,
San Fran-
cisco, and
Yokohama.
9,531


11,760
11,716
11,548
11,520
11,475
11,353
11,138
11,137
11,090
10,791
10,923
10,950


Panama,
Honolulu,
and
Yokohama.
9,829


12,058


Panama,
Honolulu,
Yokohaman
Shanghai,
and
Hongkong.


12,832
12,788
12,6D0
12,592
12,547
12,425
12,210
12,209
12,162
11,863
11,995
12,022


Panama,
Honolulu,
and
Guam.
9,528


and
Singapore.
8,394



11,424
11,588
11,786
11,831

11,986
12,80



12,649
12.894


.


I


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l









PANAMA CANAL TRAFFIC AND TOLLS.


miles nearer Manila via the Panama than via the Suez C
Manil are designated in the table; and it will be noted
and by way of Honolulu and Guam are practically equal.
esses bound for Manila will be by way of San Francise
from New York to Manila by this route being 12,055 milb


anal. Four routes across the Pacific from Panama to
that the distances via San Francisco and Yokohama
Probably the route most followed by lines of freight
ao, Yokohama, Shanghai, and Hongkong, the distance


"":"
:"E::E
"""




E:


"ij
:Eii",E:: "

.. :E


trom-


SPorn-f- d.... -.I-....I-. -- ....I..... -. .. ...


Pew .rk.....
Philadelphia.....
Baltfhne..... -.
Norfolk...........
Charleston.......


Jacalonville.......
Pirt Tamipa......
Ponmenol., .....
Motile... ----........
hwrOrieo s.....
QGalvestidn........


Bop
isop


the
Melb
of th
Capec
caMl


A A - A.-. A A. A A-..--- -----A ...


St. Vin-
cent.


Adelaide via-


Tahiti,
Sydbne

8,887


11,116


10,429


cent and
Cape
of Good
Hope.
B .


12,540


Melbourne via-


Panama,
Tahiti,
and
Sydney.
8,375


10,604


St. Vin-
cent,
Cape
of Good
Hope, and
Adelaide.
o10,248


Sydney via-


Panama
and
Tahiti.
7,794


10,023


St. Vin-
centCape
Ho e,
Adelaide,
and Mel-
bourne.
10,829

13,633
13,648
13,743
13,842
13,924
13,802
13,939
13,998
14,028
14,378
14,583
14,623
14,676
14,852


Wellington via-


Panama,
and
Tahiti.
6,834



9,063
9,019
8,851
8,823
8,778
8,656
8,441
8,440
8,393
8,094
'8,226
8,253
8,272
8,376


St. Vin-

and Met
bourne.
11,527

14,331
14,346
14,441
14,540
14,622
14,500
14,637
14,696
14,726
15,076
15,281
15,321
15,374
15,550


Straits
of
Magellan,
4,397


11,346
11,315
11,344
11,391
11,418
11,296
11,295
11,327
11,314
11,462
11,667
11,707
11,760
11,936


Vessels from the Atlantic-Gulf seaboard of the United States to Australia now round the Cape of Good
e, the distance by that route being about the same as the one via the Suez Canal. After the Panama Canal
iened, the choice will be between the Good Hope and Panama routes. Table VII states the distance from
14 selected Atlantic-Gulf ports of the United States to the three principal ports of Australia-Adelaide,
bourne, -axd Sydney. These three Australian ports are located on the southern and southeastern coasts
ie continent and vessels from the United States (and also from Europe, whether the approach be via the
of Good Hope or via the Suez Canal) pass along the southern coast of Australia. Line vessels regularly
at Adelaide and Melbourne, and are certain to proceed to Sydney, which is the largest city of Australia


and is near the Newcastle coal fields. Sydney is also visited by most chartered vessels engaged in the Aus-
tralian trade. Thus, the effect of the Panama Canal upon the length of the commercial routes from the eastern
part of the United States to Australia is to be measured mainly by comparing the distances via the Cape of
Good Hope and by way of Panama to Sydney. As is shown below in Table XI, the Panama Canal will bring
Sydney about 4,000 miles nearer New York and the other north Atlantic ports of the United States, somewhat
more than 4,500 miles nearer to Charleston and other southern Atlantic cities, and 5,500 miles closer to New Orleans
and Galveston. The distance from New York to Melbourne is 2,770 miles less, and to Adelaide 1,746 miles less,
by way of Panama and Tahiti and Sydney than via St. Vincent and the Cape of Good Hope. For the Gulf
.__ _. *.L_ -'J[1 _- . __ ... _J* a.IL T _.. .. a_ :_^. _1 _-- 1 'f\/\t _*i---___--j -


. L



<

li E:


TAnr VII.-DISTANCES (IN NAUTICAL MILES) FROM THE ATLANTIC AND GULF PORTS OF THE UNITED STATES TO
AUSTRALIA AND NEW ZEALAND VIA PANAMA, THE CAPE OF GOOD HOPE, AND THE STRAITS OF MAGELLAN.


jE:jj
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PANAMA CANAL TRAFFIC AND TOLLS.


practically


2,500 miles less than by way of the cape.


From New Orleans and Galvestonahe Panama route t6


Wellington will be


3,500 miles shorter than the Magellan route.


TanLE VIII.-DISTANCES (IN NAUTICAL MILES) FROM LIVERPOOL VIA THE PANAMA AND SUEZ ROUTES
AUSTRALIA, NEW ZEALAND, THE PHILIPPINE ISLANDS, CHINA, AND JAPAN.


To-


Adelaide....... .......................--........

Melounme.............- ..........-.-. ....

Bydney............ .....................


Wellington ......


Manla ....... ..............................

Hongfong...... ................................


Tientsin........


Yokohama ..................-..............


From Liverpool via-


Suez route.
(To Aden 4,608.)


Aden, Colombo, and King George
Sound.
Aden, Colombo, King George Sound,
and Adelaide.
Aden, Colombo King George Sound,
Adelaide, and Melbourne.
Aden, Colombo, King George Sound,
and Melbourne.
Aden, Colombo, and Singapore-........


Aden, Colombo Singpore, Hongkong,
and Shanghai.
.....do..4.-...- ..-..- -.......... ....


Distance.


11,142

11,654

12,235

12,989

9,701

9,785
11,377

11,678


Panama route.
(To Panama 4,591)


Panama, Tahiti, Sydney, and Mel-
bourne.


Panama, Tahiti, and Sydney


..p ..-.-5


Panama and TahitiL.................

* ** 1 UV ********HW1: *~* --** --- :*:*--.


Panama, San Francisco, and Yoko-
hama.


.....do..


-a.-.do. an....S. .ran...is ..o....

Panama and San Francisco-.-


Distance.


-a


+1,fl84
/3 *:
*< "..EE

-~~xi:



+HS6


-4,0


-2,4d5

- -a"


All of Asia and all of Australasia, with the exception of New Zealand, will be nearer Europe by way of the


Suez Canal than by way of the Panama route.


The distances from Liverpool via alternative routes to Ass-


tralia, New Zealand, the Philippines, China, and Japan are stated in Table VIII.


The table is so constructed


as to show (1) the distances from Aden to each of the eight designated Pacific ports, (2) the distances from


Liverpool to Aden,


(3) from Liverpool to Panama,


(4) the entire distance from Liverpool to the designated


Pacific ports via the Suez Canal, (5) the through distances from Liverpool via Panama to each of the trans


Pacific destinations, and (6) the difference in the distance via the Suez and Panama routes.


In the case of


each route the intermediate ports of call are designated.
It will be noted that while all of Australia is nearer Europe via the Suez Canal, the distance from Liverpool


to Sydney, the principal port of Australia, is


but slightly greater via Panama than via the Suez Canal.


line connecting all points in the Pacific equally distant from Liverpool via alternative canal routes runs some-
what east of Australia, well to the east of the Philippines, and passes east and slightly north of the island of
Nippon, Japan.
Wellington, New Zealand, is 1,564 miles nearer Liverpool via Panama than via Suez; however, the com-
petition for the trade of Europe with New Zealand will not be mainly between the Panama and the Suez routes.
At the present time most freight vessels outbound from Europe to Australia and New Zealand go via the Cape


of Good Hope, while passenger and express steamers take the Suez route.


Vessels leaving New Zealand with


full cargoes for Europe regularly proceed via the Straits of Magellan which route to Liverpool is 1,014 miles


shorter than the route via Melbourne, 'olombo, and Suez.


After the Panama Canal is opened there will be


active competition between the Panama and Magellan routes for much of the traffic between Europe and New


Zealand.


The distance between Liverpool and New Zealand via the Straits of Magellan will be only 500 miles


greater than via the American Isthmus.
From Liverpool and Europe generally to the Philippine Islands,


to China and Japan, the Suez route will


be much shorter than the Panama route. From Liverpool to Manila and Hongkong, the Suez route will be
over 4,000 miles shorter than the route via Panama. Northern China via the Suez Canal will be 2,500 miles


-





























* *: **s.::: .l
U









2W

U





Ti<
Y-



t%

tgi


-a Ir.-- COMPARATIVE DISTANCES (IN NAUTICAL MILES) FROM NEW YORK AND LIVERPOOL TO
LAND, AUSTRALIA, PHILIPPINES, CHINA, AND JAPAN, VIA SUEZ AND PANAMA CANALS.


NEW ZEA-


PANAMA CANAL TRAFFIC AND TOLLS.


elw ing*l,.
dey..

/3-


*-. -........-....- . ....-... ..-.a ...- -
I............ .......... ........... ..........


ex t. .. .. .- .... .... --,-,...- --.--.. .-..-


oughoug.
-angla-..


1.** ***.aa***:*.. a. . .. t... a. : *.. *- .
!l*l*:*l*l****:*(** h *** ft 1***f ** ** *** :*: * : * -


New York via Panama Canal.


Ports of call.


Panama and Tahiti.


.....do..


Panama, Tahiti, Sydney, and Mel-
bourne.
Panama, San Francisco, and Yoko-


barn.
.....do..
.-*-.do..

.....do..


....aaaa ....- ..a ...a.a- ... a a:


Panama and San -rancisco.


Distance


8,851

9,811

10,904

11,548

11,383
10,839

11,248

9,798


Liverpool via Suez Canal.
4,608


Ports of call.


Aden, Colombo, King George Bound,
and Melbourne.
Aden, Colombo, King George Sound,
Adelaide, and Melbourne.
Aden, Colombo, and King George
Sound.
Aden, Colombo, and Singapore........

.....do................................
Aden, Colombo, Singapore, and Hong-
kong.
Aden, Colombo, Singapore, Hongkong,
and Shanghai.


Distance.


12,989

12,235

11,142

9,701

9,785
10,637

11,377

11.678


Differ-
ence in
favor of
Suez -,
Panama


+4,138

+2,424

+ 238

-1,847

-1,598
- 202

+ 129


+1,880


The conditions under which American and European merchants will compete for the trade of Australasia,
1e Philippines, China, and Japan, after the opening of the Panama Canal, are indicated in Table IX, which


compares the distances from New York via the Panama Canal with tl
Canal to the eight most important Pacific ports of Australasia and Asia.


lasia much nearer to New York than to Liverpool.


he distances from Europe via the Suez
The Panama Canal will bring Austra-


The distance from Liverpool to Sydney via Suez, Colombo,


King George Sound, Adelaide, and Melbourne will be 2,424 miles, greater than from New York to Sydney via
Panama and Tahiti. Liverpool will be 4,138 miles farther than New York will be from Wellington, New Zea-
land. In the Philippine Islands and in southern and central China, however, the situation will be the reverse.
The Philippine Islands, after the opening of the Panama Canal, will still be 2,000 miles nearer to northwestern
Europe than to the eastern part of the United States. Northern China will be slightly nearer to the north
Atlantic seaboard of the United States than to northwestern Europe, while Yokohama will be 1,880 miles
nearer New York than Liverpool.


Plate 2


, in the pocket at end of this report, locates the points equally distant from New York and from


Liverpool via the Panama and Suez routes.


In discussing the probable movement of traffic after the Panama


Canal has been put into operation, attention will be called to the fact that the line equally distant from a
European port via the eastern and western canal routes will not necessarily be the boundary between the


Suez and Panama Canal traffic zones.


For reasons that are discussed at length in succeeding chapters of this


Report there will be much overlapping of traffic routes on the Pacific shore of Asia.


LX X.-DISTANCES


From-


York.
eston.
Orlea


(IN NAUTICAL MILES) PROM ATLANTIC (AMERICAN AND EUROPEAN) PORTS TO PACIFIC
PORTS.


Via Panama Canal to-


.-M .. -. ,-.,a-- a.. ,. *aa..a. a---------------


s.


a.. -aaa--. a--.....a aaa ap---------------


San Fran-
cisco.
3,245

5,262
4,852
4,683


Iqu ue.
1,98 7


Valparaiso.
2,616


Honolulu. Yokohama. Hongkong.


9,677
9,267
9,098


Manila.
9,370


11,387
10,977
10,808


Sydney via
Tahlti.
7,794


Wellington
via Tahiti.
6834


TAR









New
Charl
New
/KKKiII
sssV -N S W


okhama











PANAMA CANAL TRAFFIC AND TOLLS.


For convenience of reference, the distances from three ports of the United State l ted in the northern
middle, and southern parts of the Atlantic-Gulf seaboard and from three European points of commanding
tion to nine selected ports on the eastern and western shores of the Pacific are stated in summary form in TabiX.


The table gives, first, the distances from Panama to the Pacific ports;


and, second, the through distances fmii


the six Atlantic American and European commercial centers to the nine designated Pacific termini.
From the foregoing tables, the saving in ocean distances that can be made by using the Panama Canal
instead of the shortest alternative commercial routes has been calculated. Table XI states the reduction, ,i
nautical miles, effected by the Panama Canal in the length of all-water routes between ports of the At


Gulf seaboard of the United States and ports on both sides of the Pacific Ocean.


o Table XII gives the reduti,


in nautical miles, effected by the Panama Canal in distances from five distributed European ports to fourteen
important Pacific commercial centers. As has already been pointed out, New Zealand is the only trans-Pa
country from which distances to Europe will be shortened by the Panama Canal. In the columns hea
"remarks," the routes contrasted in Tables XI and XII are designated and the intermediate ports of call incld
in each route are named.

TABLE XI.--REDUCTION (IN NAUTICAL MILES) EFFECTED BY THE PANAMA CANAL IN LENGTH OF ALL-W


ROUTES BETWEEN


PORTS OF THE ATLANTIC-GULF


SEABOARD


OF THE


UNITED STATES AND


PACIFIC


'PORTS, AMERICAN AND FOREIGN.


To-


Sitka. .... . .. ....


Port Townsend..


- - -.


Portland, Oreg ........


San Francisco..


San Diego.................
Acapuleo ..................
San Jose de Guatemala... -
Honolulu ..................
Ouayaquil .................
Caao .....................
Iquique ...................


Valparaiso.
Coronel. ...
Yokohama


.* ......-. -....
....... ..... -


Shanghai ..................




Hongkong................




Manila... ..........


7,663


7,663 7,676
7,663 7,676
7,673 7,686
7, 871 7,884
8,125 8,138


7,195 7,208
6,040 6,053
4,929 4,942
3,537 3,550


3,353


1,461 I1,543


1-433 t1-351


I-374


1-292


Phila-
del-
i phia.


Balti-
more.


8,020


8,020
8,020


8,030
8,228
8,482
6,757
7,552
6,397
5,286
3,894
3,443
4,116



2,224




330




389


From-


Charles-
ton.


Savan-
nah.


Port
Tampa.


8,748


8,748
8,748
8,748
8,758
8,956
9,210
7,485
8,280
7,125
6,014
4,622
4,171
5,585




3.693




1,799




1,858


Pen-
saoola.


8, 821


8,821
8,821
8,821
8,831
9,029
9,283
7,558
8,353
7, 198
6,087
4,695
4,244
5,658




3,766




1,872



1,931


Mo- I New
bile. Orleans.


Remarks.


Via San Francisco. DWe
ence between Panama and
Magellan routes.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Do.
Difference between routes via
Panama, San Francisco
and Great Circle,and a
Suez, Colombo Singaore,
Hogkgkong, and ShangM.
Difference between routes via
Panama, San Franceo,
Yokohama, and via Sue
Colombo, Singapore, and
Hongkong.
Different between routesvi
Panama, San Francisco,
Yokohama, and Shanghai,
and via Suez, Colombo, and
Singapore.
Difference between routes via
Panama San Franlisco,
and Yokohama, and via
Suez, Colombo, and Singa-


KKKKKKK K K\KK.;^^K KK KK^K^
*K KKKeE~ KKKK KK 'KKKKKKKKKKKKKK KKK KKK


iii:i:
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Is


I J










PANAMA CANAL TRAFFIC AND TOLIS.


ALL-WATER


ROUTEES


BETWEEN TORTS OF THE ATLANTIC-GULF


SEABOARD OF THE UNITED STATES


PORTS, AMERICAN AND FOREIGN--Continued.


ourey- -..............




Wdlat .....-......--.......
~.*l*rl*


From-


Port-
land
(Me.).

2,448




3,610




2,283


New
York.


2,770




3,932




2,493


Charles-
ton.


3,376




4,538




2,854


Savan-
nab.


3,436



4,598




2,887


Port
Tampa.


Pen-
sacola.


4,235




,5,397




3,441


New Gal-
Orleans. ve-


4,282 4,354




5,444 5,516


..*iii~i


Remarks.


Difference between routes via
Panama Tahiti, and Syd-
ney, and via St. Vincent,
Ca pe of Good Hope, an

Difference between routes via
Panama and Tahiti and via
St. Vincent, Cape of Good
Hope, Adelaide, and Mel-
bourne
Difference between routes via
Panama and Tahiti and
via Straits of Magellan.


TAm XI.--REDUCTION (IN NAUTICAL MILES) EFFECTED BY THE PANAMA CANAL IN DISTANCES FROM EURO-
PEAN PORTS TO THE PORTS OF THE WEST COAST OF AMERICA AND TO NEW ZEALAND.


To-


Slth.a .. ...- ...*--....-- ..

PFt Townsend.-............

portland, Oreg........-.......


Ban Frane ..


San Diego........

Asapuloo..... ....


San Jose de Guatemala.......

EHonioblul. ............. .......


Guas


yaquil.


Caoll........................

Iaquqne ................-....

Valparale-so ...................

Coronet........ --.........


ington...


Via-


Magellan,.. ..
Panama.......,
Magellan......
Panama.......
Magellan......
Panama. ....
hagellan......

Panama......


Magellan.....
Panama.......

Magellan.....
Panama......

Hagellan......
Panama......

Magellan......
Panama.......
Magellan......
Panama.......



Magellan......
Panama.......
Magellan......

Magenan......a
Panama .......
Magellan......
Panama....


- ... 4-
a.......


From-


12%989


Less via
Pan-.
ama.


5,666 15,185
9,657
5,666 14,653
9,125
5,666 14,533
9,005
5,666 13,883
8,355
5,676 13,491
7,953


5,874 12,
6,


6,128 11,96
6,996
4,403 14,060
9,795
5,198 10,963
5,903
4,043 10,361
6,456


1,540


1.089


1,564 13,353


11,944


5,528 14,923
9,395
5,628 14,391
8,863
5,528 14,271
8,743


5,538 13,229
7,691
5,736 12,010
6,274
5,990 11,724
5,734
4,265 13,798
9,633
5,060 10,701
5,641
3,905 10,099
6,194


1.402


1,4090 13,091


11,682


ILess via


5.528


1.402


Bordeaux.


11,475


Less via
Pan-


5.376


3,753


1.250


Gibraltar.


11,702
11,213


Less via
Pan-
ama.


4,950


4.950


4,960


3.687


Remarks.


Via San Francisco.

Do.


Suez route via Aden, Colombo, King
George Sound, and Melbourne.
Panama route via Tahiti.


AND


PACIFIC


fr



l '


TE XI.--REDUCTION (IN NAUTICAL MILES) EFFECTED BY THE PANAMA CANAL IN LENGTH OF


3,488 3,560


Well










PANAMA CANAL TRAFFIC AND TOLLS.

The time and fuel costs which vessels can save by using the Panama Canal instead some other


the measure of the ci
which the canal may
the number of hours
of days that may be


steamers of 9, 10,
14 and 16 knots, t
the detention of t
Panama and Suez,
will be understood
Panama to San Fr


anal's service to commerce. The saving in time of voyage
make in the length of an ocean route will depend upon the
required to make the passage through the canal. In Tablh
saved by using the Panama Canal is calculated for vessel
d 12 knots, which are the speeds at which freight vessels i
speed of most passenger ,vessels. A half day is deducted
vessel in making the transit through the canal. When
is assumed that the passage through the Suez Canal will


resulting from the
speed of the vessel


es XIII and XIV
s of five different
ire operated, and
in each instance


th
tsp

to


[
*
*


I the comparison is
lelay a vessel a hall


that the length of each route through the Panama or Suez Canal (as from New
ancisco or from New York via Suez to Hongkong) includes the length of the canal


tical miles for the Panama Canal and 87 miles for the Suez--and that the half-day taken from the,
of days saved," as stated in the following tables, is the deduction made to allow for the longer time


]
I




f


to make the distance between the canal terminals than would be required to steam the same number of aos
at sea.

TABLE XIII.-NUMBER OF DAYS SAVED, FOR VESSELS OF DIFFERENT SPEEDS, BY THE PANAMA CANAL ROTTE
BETWEEN THE ATLANTIC-GULF PORTS OF THE UNITED STATES AND PACIFIC PORTS, AMERICAN AND FOREIGN.


To--


Bitka ............................
Port Townsend ..................
Portland, Oreg -........... ... ...
Ban Francisco ............ .......
San Diego.......................
Acapulco --........................
San Jose de Guatemala..........
Honolulu........................
Guayaquil.......................
Callao ...........................
Iquique ....-....................
Valparaiso.......... .............
Coronal.........................
Yokohama....................
Shanghai ..................
Hongkong .................
Manila...........................
Adelaide........................
Melbourne.......................
Sydney .........................
Wellington......................


From-


New York, for vessels of- Charleston, for vessels of-


Port Tampa, for
of-


vessels


New Orleans, for vessels


Galveston, for vessels of-


an
;he
lhe
it


~"::""BE::,"
"E""" ":,
i"
"E""


:!^.:'ii
*s:*:


*: :!M ..i
*!M


route aS

and upon

eeds--for

allow for
betw es
day:
Yors
r-41 :
"numbs
f\ ^*tTeI',






ss'..


















':i"





lIF


1
iw-


B a XIV.--NUMBER OF DAYS SAVED, FOR VESSELS OF DIFFERENT SPEEDS, BY THE PANAMA CANAL ROUTE
BETWEEN EUROPEAN PORTS AND PORTS OF PACIFIC AMERICA AND OF NEW ZEALAND.
I.


To-


Sitka.. ..........................
Part Townsend ..................
Portland, Oreg..................
San Fraalcsco. ...................
San Diego .......................
Acapulco.......................
San Jose de Quatemala..........
Honolualu........................
GuasyaqufH ......................
Call*ao...........................

Iquique ........................
Valpariso .......................
Coronetl..........................
We.ington ......................


From-


Liverpool, for vessels of--


Hamburg, for vessels of--


D a


22.5 18.7
22.5 18.7
22.5 18.7
22.5 18.7
22.5 18.7,

23.4 19.4
24.4 20.3
17.2 14.3
20.6 17.1
15.8 13.1
11.1 9.2
5.3 4.3
3.4 2.8
5.3 4.4


Bordeaux, for vessels of-- Gibraltar, for vessels of--


Southern China and the Philippines-Hongkong and Manila-are near the center of the section whose
commerce with New York and the other north Atlantic ports of the United States may use the Panama or
Suez Canal with equal advantage, as far as distance and time of voyage are concerned. Relative tolls and
coal prices via the alternative routes, and the traffic possibilities at intermediate ports, as will be explained in
Chapters X and XI, rather than the days to be saved by taking one route rather than the other will determine


whether the Panama or the Suez Canal
the commerce of the western side of th
by using the Panama instead of the Suez
America equally distant from a port of
what south of 400 south latitude.. Cor
south of the Equator.


will be used by vessels bound to or from that part of the Orient. Of
ie Pacific with Europe, only the trade of New Zealand can save time
or some other alternative route. The point on the west coast of South
f Europe via the Panama Canal and the Straits of Magellan is some-
onel, the most southerly port mentioned in Table XIV, is about 370


PNAMA CANAL TRAFFIC AND TOLLS.




""E"x::"": x~~~EEaj~jjiii:"~j jj


*- x ..




x 1


v x-:














xx
xx E x "




xx '.^ ^
xx x


x x x





























CHAPTER II.

TONNAGE OF THE VESSELS EMPLOYED IN THE COMMERCE
THAT MIGHT HAVE ADVANTAGEOUSLY USED THE
PANAMA CANAL IN 1909-10.

19


xx xx









'xx











xx :ii, ii

x xx xE:








I?:. -"
111111:
HI:::
ill:: /
f K^


CHAPTER II.


TONNAGE OF THE VESSELS EMPLOYED IN THE COMMERCE THAT MIGHT HAVE ADVANTAGEOUSLY
USED THE PANAMA CANAL IN 1909-10.


INTRODUCTION.


In the report made by the Isthmian Canal Commission in 1901, it was stated that in the year 1899,
4,891,075 net register tons of shipping would have used an Isthmian canal had it then been open to traffic.


That sum was ascertained by an analysis of the entrances and clearances, at the ports of the United States
and European countries, of the vessels employed in the commerce that might have advantageously used a
Panama canal. A study was also made of the figures collected by the New Panama Canal Co., which
had, for a number of years, kept a record of the movements or voyages of all vessels whose routes were such
that the vessels would naturally have passed through a Panama canal. (See Appendix I, chapter XIX.)
The records kept by the French company presented separate tonnage totals for vessels (1) moving between
Europe and Pacific-America, (2) between Europe and the Orient, (3) between Atlantic and Pacific America,
and (4) between Atlantic-America and the Orient. Most of the tonnage of the vessels moving between Europe
and th1 Orient (Group 2) was excluded from the total because it belonged to the Suez, rather than to the
Panama, route. There were added 336,998 tons for the commerce crossing the Istltnus of Panama, because
the records kept by the French company could not have included that traffic. These changes having been
made in the total tonnage of vessel movements as recorded by the Panama Canal Co., it was found that
their records indicated an available Panama traffic in 1899 of 5,001,798 tons net register-a total but slightly
larger than that ascertained by the study of recorded entrances and clearances. (Appendix I, chapter XX.)
To determine what tonnage of vessels would have used a Panama canal in 1910, had it then been available,
an analysis has been made of the records of the leading commercial nations concerning the entrances and clear-
ances of vessels. The figures here presented are for the latest available year, in most instances for the year
1910. In the case of some foreign countries, figures for 1909 were the latest obtainable. The years covered
by the figures are stated in the statistical tables.
The tables contained in this report have been so constructed as to show (1) total entrances and clearances;
(2) the tonnage of vessels with cargo as distinct from those in ballast; and (3) the tonnage of sailing vessels
separately from the tonnage of steamships. It is important to know what share of the vessels using the Panama
Canal will probably move in ballast, because ,he tolls are ordinarily made less for empty than for loaded vessels.
The tonnage of sailing vessels needs to be known to ascertain to what extent traffic will need to shift from sail
to steam, for sailing vessels will not use the Panama Canal.
The statistics of vessel entrances and clearances have certain limitations which make it impossible to
accept them without careful analysis. Different countries follow dissimilar rules in making their records.
There are unavoidable duplications in some instances; and in other cases there are serious understatements
due to the fact that the records of vessel movements do not, and can not, correspond to the actual movements
of commodities m international commerce. In analyzing entrance and clearance statistics, the following facts
are to be kept in mind:
1. The methods or rules followed in recording entrances and clearances in the various nations are not
ni** f l -... 1.. F .j1 1T W, 1 1T- ii *t* 'r.


I '




4 fai ffff; I iII II" a~hNEflAjIIC~fhaIIIIDDUUUI;"fAEfa~fi"


4>:::E:: ~~BE: "

At"E~E~: :


PANAMA CANAL TRAFFIC AND TOLLS.


first foreign port to which they are bound.


The rules of France, Belgium, Germany, and Austria are essentially


the same as the British. The Italian regulations, however, provide that when vessels with cargoes come from,
or go to, more than one foreign country, each country is credited with the tonnage.
The rules in force in the United States state that "in tabulating clearances to foreign ports, the tonna$
is credited to the country in which is located the first foreign port at which the vessel will enter for discharge
of cargo; but if the bulk of the cargo is to be discharged at some other foreign port, the tonnage, will be ere~-
ited to the country in which that port is located. In cases of entrances, the first foreign port from which th
vessel sailed with cargo for the United States is that to which the entered tonnage will be credited."
American rule for entrances is, therefore, like the rules of Great Britain, Germany, Belgium, France,
Austria, but the American rule for clearances is different.
2. The records of vessel entrances and clearances often include duplications. This is especially the ca,
in the trade between Europe and the west coast of South America, the Orient, and Oceania. The cause a
these duplications will be explained in discussing what deductions from the recorded figures are to be mad&
to eliminate the duplications.


3. The reci
States and the
and, for reason
4. For the
the records are
It is thus n
they tally with


words of the vessel movements between some sections, as between the eastern coast of the Unit
Orient and Oceania, understate the tonnage of shipping actually employed in the commero;
s that will be stated later, it is necessary to increase the recorded figures.
commerce between some sections, as between Europe and Pacific-Mexico and Central Amerin,
incomplete, in that they do not state the tonnage at Atlantic and Pacific ports separately.
necessary to subject entrance and clearance statistics to a careful analysis and to ascertain whether


the known facts as regards vessel movements and commercial exchanges; but, when so tested


and corrected, they enable one to determine, with approximate accuracy, the actual vessel tonnage at present
available for the Panama Canal.


VESSEL TONNAGE OF EUROPEAN TRADE


WITH THE


WEST COAST OF SOUTH AnMRICA, 1909.


The tonnage of shipping recorded by European countries as having cleared to, and entered, from the west
coast of South America, in 1909, is stated in Table I. There were 2,007,857 net tons of European entrances
and 2,177,600 net tons of European clearances, a total of 4,185,457.


TABLE I.-EUROPEAN


ENTRANCES AND CLEARANCES, NET REGISTER TONNAGE OF VESSELS TRADING BE"
TWEEN EUROPE AND THE WEST COAST OF SOUTH AMERICA (1909).


Countries.


United Kingdom
German Empire.
Belgium i..... ...
The Netherlands
Sweden..........
Hungary ........
Norway 4........
Portugal.........
Italy ...........
Snain_ _


Entrances.


Chile.


Cargo.


197,270
368,445
219,085
84,616


mn a rn


Peru.


Cargo.


173,148
79,323
6,969
9,851


. .. . ,


16,506


Ecuador.


Bolivia.


10&.ARG la mm as ..a .


Total
cargo and
ballast.


387,656
457,452
227,566
101,168


4,181


210,250
21,135
91St am


Clearances.


Chile.


Cargo.


585,681
113,409
20,574
6,552
1,143


44
178,888
5,502
1lI fRtfl


Bal-
last.

2,234


Peru.


Cargo.


261,558
131,130


2,188 177,943


. ... .
--- -.. -


X2 a lnI I


.......
*-. -... -


21,709
14,976
90 176


Ecuador.


Bolivia.


.xx saw s a vms a is w .


Total
caro and



908,069
247,541
200,705
6,552
1,143
- ... .... ,
44
211,907
21,063
_t2.24


Waes
e traces
clear-
anela


1, 295,725
704,99
428,271
107,720
1,143
4,181
44
422,157
42,198
fdtD.9Ath


:Ei


Si iiiimr' |S|S!



:: !
:. *<.
I" *


I




























i

%I


23

the fact that-
German and British clearances
their rules as to clearances, be

nan and British entrances may


have called en route at one or more of the above-named countries and have been
(3) The Spanish and Portuguese entrances and clearances may, in addition to
duplications, contain some tonnage that has been included in French or Italian
The recorded entrances-and clearances of the United Kingdom, Germany, N
accepted without change, for those countries are so situated as to be the European
between Europe and the west coast of South America. In the case of Belgium,


recorded in their entrances.
possible British and German
records.
orway, and Sweden may be
termini of vessel movements
however, there are duplica-


tins, because steamers both outbound from and inbound to German and British ports call at Belgium with
eargo. Under the Belgian as well as the British and German rules vessels with cargo are entered from the first
port and cleared to the last port at which they loaded or discharged cargo during their voyage. Belgian
entrances from the west coast of South America are one-half of those of Germany and within 160,000 tons of
those of the United Kingdom; although the imports of Belgium from Pacific South America are small, as


compared with those of Germany or Great Britain. The Belgian entrances of sailing vessels amount to 109,723
tons, and may be accepted without change, because they are for chartered vessels which usually bring in and
discharge full cargoes. The entrances in ballast-1,512 tons-may also be accepted; because, under the
entrance rules of Belgium, Great Britain, and Germany, vessels in ballast are entered from the last point at
which they touch. Owing to the smallness of Belgian imports, as compared with those into Germany and
Great Britain, and the comparative magnitude of Belgian vessel entrances, it was thought that not more than
three-fourths of the remaining steam entrances should be included in the revised figure of entrances. This
makes the net Belgian entrances 198,483 net tons.
Belgian clearances of sailing vessels contain no duplications, but amount to only 21,055 tons. The clear-
ances of vessels in ballast (2,188 tons) may also be accepted without change. The exports from Belgium to
the west coast of South America are considerably less than those from Germany; yet the recorded clearances
from the two countries are not very far apart. It should also be noted that British exports to the west coast
of South America do not require so much vessel tonnage as clears from British ports, and ships from Great
Britain are known to call at Belgium en route. It is probable that the duplications are greater in the recorded
clearances of Belgium than in the entrances., In Belgium, Holland, France, Spain, and Portugal many ships
cleared from Great Britain take on cargo, and a smaller number of German vessels call at Belgium to complete
their cargo for the west coast of South America. It is thought that the steamship clearances from Belgium


should be reduced


one-half, or to 136,311 tons.


This credits Belgium with a total vessel tonnage to and from


Western South America of 334,784 net tons.
A portion of the tonnage recorded by the Netherlands as to and from the west coast of South America is
also included in the tonnage recorded as entering and clearing at ports of the United Kingdom and Germany.
The situation as to the Netherlands entrances is similar to that of the Belgian, and the same method of avoiding
duplications may be adopted. The recorded entrances of sailing vessels (31,007 tons) and those of vessels in
ballast (1,860) may be accepted without change, and this sum added to three-fourths of the remaining steam
tonnage makes the total entrances 84,093 tons. The recorded clearances of the Netherlands are so small that
they may be accepted without change. The total vessel movement between the Netherlands and western
South America aggregates 90,645 tons of entrances and clearances.


The recorded vessel entrances into France from the west coast of South America ar
those of Great Britain, although the value of French imports from that section is much ler
the imports either of Germany or of Great Britain. The discrepancy must be due to dupl
entrances. Vessels bound for the United Kingdom or Germany sometimes call at French
portion their cargo and in that way are recorded both in France and in the British or (


almost as large as
ss than the value of
ication in the vessel
ports to discharge a
German ports where


The figures in Table
(1) Vessels outbound
may call at Belgium, The
again recorded as cleared
(2) Vessels inbound


PANAMA CANAL TRAFFIC AND TOLLS.

I contain certain rather large duplications because of
I from German and British ports and recorded in the
Netherlands, France, Spaih, or Portugal; and, under
from one or more of those countries.
at German and British ports and recorded in the Ger


-r


1 _j




-.ffAAA


PANAMA CANAL TRAFFIC AND TOLLS.


The value of the French and German exports to the west coast of South America do at differ greatly in
value, and their vessel clearances to the two countries are similar in amount. The exports from the Unitid
Kingdom to western South America are of large value; bit the British clearances are disproportionately large
in comparison with the exports. Ships from Great Britain call at French ports, partly loaded, and are thus
recorded in France as well as in Great Britain. This is true to a less extent of vessels clearing from German
ports. Probably one-half of the recorded French clearances to the west coast of South America should be
deducted, leaving a total of 113,616 tons. This makes the aggregate net vessel movement, inbound and
outbound, between France and western South America 359,799 tons. There are no clearances of sailing vessels
or steamers in ballast from France to the west coast of South America.
The duplications in the Spanish tonnage figures are very pronounced. The value of the combined import
and export trade of Spain with the west coast of South America is less than $3,000,000; yet the vessel entrances
in this trade, as recorded by Spain, are over one-half those of Germany or Great Britain, and the clearances
exceed those of Germany. The greater portion of this recorded tonnage is also included in the British, Germi,
and French figures. The entrances of sailing vessels, vessels in ballast, and of steamers flying the Spanish flag
may be accepted without deduction. Probably one-fourth of the remaining recorded entrances may properly
be retained. This reduces the net entrances to 93,104 tons. The Spanish clearances of sailing vessels, of vessels
in ballast, and of steamers flying the Spanish flag aggregate 125,208 tons. This analysis credits the commerce
of Spain with western South America with 218,320 net tons of vessel entrances and clearances, of which 145,303
tons consist of vessels moving in ballast.
The trade of Portugal with the west coast of South America is so small that most of the abnormally large
vessel tonnage recorded consists of duplications. As in the case of Spain, however, the total tonnage of sailing
vessels and of vessels in ballast may be regarded as free from duplications, and doubtless about one-fourth of
the remaining entrances may conservatively be retained. By this reasoning Portugal is credited with entrances
of 61,600 tons and clearances of 34,966, an aggregate of 96,566. Vessels of Portuguese nationality engaged
in the trade with western South America are so few in number that they are not separately specified in the
official reports.
The trade of Italy with the west coast of South America is sufficiently heavy to account for the small vessel
tonnage recorded by Italy. The same is true of Hungarian tonnage. In both cases the figures may be
accepted without change.
The total net entrances into Europe of vessels engaged in the trade with the west coast of South America
are reduced by this analysis to 1,553,887 tons and the clearances to 1,594,513, a combined total of 3,148,400.
This reduction from the total tonnage as recorded is relatively greater than was made in the report of 1899-1901;
but it is believed that the duplications have become more numerous because of the increased use of steamers
instead of sailing vessels and because of the growth of line as compared with chartered traffic.
Though the entrances here given are slightly less than the clearances, it is to be noted (1) that 150,312
tons of the clearances consist of vessels in ballast and that a considerable portion of the remaining tonnage
clears lightly laden; (2) that the recorded tonnage statistics show a similar relation between entrances and
clearances; and (3) that the clearances from Great Britain are unusually large and consist partly of vessels
which clear from British ports for South America later to return with cargo destined to continental European
ports. Such vessels appear in the clearance returns of Great Britain and in the entrance records of other
European countries. Some ships after discharging on the west coast of South America proceed to the Pacific
coast of the United States or of British Columbia. Such vessels are recorded by Great Britain as having cleared
for western South America and as having entered from the United States or British Columbia.
The tonnage of the sailing vessels in the trade between Europe and the west coast of South America in
1909 was 1,054,917 tons, or 25 per cent of the total recorded tonnage and 38 per cent of the tonnage after the
deductions to eliminate duplications. The percentages for 1898-99 are not known, but must have been much
larger.
--- '3* 9 .9 1 .3 .. *-J --^ ^ ^ 9 -. 4


I:..


!M ':








PANAMA CANAL TRAIN

VBssL TONACe OF EunoPnE TRADE wrrIT WE

The statistics of the vessel movements between Eu
America via the Horn and the Straits of Magellan are
between the eastern and western ports of Mexico and Ce]
American countries, except San Salvador, have ports on bo
entries for San Salvador. The total recorded European e
Mexico and Central America, as stated in Table II, amount

TALES II.-NET REGISTER TONNAGE OF VESSELS OPERA
AMERICA AND PACIFIC

I Central America.

Countries. Vessels In ballast. Vessels with cargo. Total vessels.
i: I Ioune8
Ilr^ Ya _^ ^ EW^I


qeinza Em pire ..... -.....
TEransewith San Salvador..
Spain with San Salvador...


En-
trance&


..


En-
trances.


18,754
12,067


1,824


En-
trances.


18,754
12,667
S-f i . 4


1,824


FIC AND TOLLS.


TEN CENTRAL AMERICA AND MEXICo, 1909.


rope and the western ports of Mexico and
incomplete. The German figures alone dis
ntral America, although Mexico and all the
th seaboards. Only France and Spain have :
entrances and clearances for the trade with
ited to only 99,751 net tons.


ATED BETWEEN EUROPE
c MEXICO (1909).


AND WESTERN


Pacific Mexico.


Vessels in ballast.


En-
trances.


Vessels with cargo.


En-
trances.


57,533


Total vessels.


En-
trances.


8,973


57,533


57,533


C


Central
tinguish
Central
separate
western


CENTRAL


Total.


En-
trances


27,727
12,667


57,533

1,824
59,357


Most European countries trade with the west coast of Mexido and Central America, but the tonnage of
shipping employed is not known. The importance of Great Britain in the commerce with this part of America
is such that the above figures for Germany and the partial figures for France and Spain ought to be doubled
to secure a total equal to the probable actual European entrances and clearances of vessels employed in the
commerce with the west coast of Central America and Mexico. By doing this, the total entrances become
80,788 tons and the clearances 118,714, the combined total being 199,502 tons.
A portion of the trade of Europe with the western ports of Mexico and Central America is handled via the
Isthmus of Panama, and is discussed later. The tonnage included in Table II is that which moves by all-
water routes around South Ainerica. In Table XI is a classified summary of this vessel tonnage.

TRADE OF EROPE WITH THE WEST COAST OF THE UNITED STATES, BRITISH COLUMBIA, AND HAWAII, 1910.

The recorded statistics of the tonnage of vessels moving between Europe and the west coast of the United
States contain few duplications, because the figures are taken almost entirely from the American navigation
reports and not from the separate records of the various European countries. The figures for Hawaii are taken
from the same source, and contain no duplications. The tonnage credited to British Columbia, with the excep-
tion of the tonnage of vessels from and to Great Britain, is taken from the Canadian records, and there may be
some duplications, because vessels en route between Europe and British Columbia may call at Pacific ports
of the United States. It is believed, however, that 118,407 tons of vessel movements were required for the
trade between British Columbia and Europe, and that the amount of duplications must be small. The tonnage
of vessels that entered Great Britain from British Columbia and that cleared thence from Great Britain was
obtained from the British Navigation Report for 1909, and there could be no duplications in the figures.
The total entrances into Europe from the Pacific ports of the United States, Hawaii, and British Columbia


in 1910 were 419,865 tons, and the clearances 269,853, the combined total being 689,718.
tistics are shown in Tables III and XI.


The detailed sta-




B EEEE4


26 PANAMA CANAL TRAFFIC AND TOLLS.


TABLE IIT.-NET REGISTER TONNAGE, ENTRANCES AND CLEARANCES, VESSEL MOVEMENTS BETWEEN EUROPE


AND WESTERN COAST OF UNITED STATES, BRITISH COLUMBIA, AND HAWAI(1910).


Vessels in ballast. Vessels with cargo. Tota
Countries.
Entered) Cleared.red Entere leare Enee Cleare


PaficUnited States.................... ................................................................. 1 2,213 331,319 208,453 331,319 2266B
British Colnumbla s. ........................................................................................ 586 88,546 29,25 88540 8
Hawail......................................................................................... .................................... 19,326 ............ 19.3
Total ...--------------------------------...... ........ .... ----------------------......-- 1,5 2, 6 2
Total ........................- .................. 12,799 419,865 257,(64 419,865
.. ****.. _ .. ..,.- ********* *** *** ** *** ******** ............ ..-... _...-. _....- .....-.. .....-...................... ...- .^ ... ...........^.^ ..^ .. ,*::; :,_ _ ... __. ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ _ - -,,,,,,,,,,,,,,,,, --- ^ ^ -- ...- .-- .............-.^ -* Tr ~ r *


1 Entered Europe from Pacific United States, British Columbia, and Hawaii.
SCleared from Europe to Pacific United States, British Columbia, and Hawaii.
' Data of United Kingdom for year 1909; total divided between cargo and ballast, according to figures of the United Kingdom.


It should be noted that "Clearances" in the above table comprise clearances from Europe to the Pacif


United States, Hawaii, and British Columbia.


Vessel movements are heaviest toward Europe, for, it is in


this direction that grain, lumber, and flour, requiring heavy vessel tonnage, are carried.


VESSEL


TONNAGE OF EUROPEAN TRADE' WITH THE ORIENT EAST OF SINGAPORE AND WITH OCEANIA, 1909.


In the foregoing analysis of the entrances and clearances of the vessels employed in the trade between Europe

and the west coast of South America, Central America, Mexico, and the United States and of the trade of Europe
with British Columbia and Hawaii, the sole problem has been to ascertain from the records of entrances and


clearances the correct tonnage of vessel movements.


The saving in distance effected by the Panama Canal


will be sufficient to cause all this trade, with the possible exception of a part of that to and from central and

southern Chile, to use the canal. For the trade of Europe with the Orient and Oceania the Panama Canal
will compete with the Suez Canal and the Cape of Good Hope route. In the following table, No. IV, the net


register tonnage of all the vessels that entered and cleared European ports in 1909 in the trade between Europe
and oriental countries east of Singapore is included; but, for reasons that are fully stated below, only a small
share of this tonnage is to be included in the available Panama traffic.

TABLE IV.-NET REGISTER TONNAGE, EUROPEAN ENTRANCES AND CLEARANCES OF VESSELS TRADING BETWEEN


EUROPE AND ORIENTAL COUNTRIES EAST OF SINGAPORE AND COUNTRIES OF OCEANIA


1909).


Countries.


United Kingdom


German
Belgium
The Neth
Sweden..
Norway.
Austrjia..
Hungary


Spain.
Franci


e..


Empire...............................
Empre-------,------------.--,--,-






-.-- ---------------------.- -..-..--.. -.
elands ............ ....................


Entrances.


China. Japan.


Cargo. Bal- Cargo. Ballast.


62,313 3,999 567,618 134,934
16,046...... 239,034 ........
70,002 .... 616,670 ........
95, 221...... 89,507 ........
.............. 2,462 ........


2. 00 ..... 47,139 .......

2,000.....- 47,164........


lrf eact


.......- -I......................... 73,567....


67, 587 ........


523,843........


Australia. New Ze


Cargo. Ba!- Cargo.
last.


1,104,237'
301,514
584,473


100,737
4,240
*. .. * !*****


71,271


land


387,099


Philippine
Islands.


Cargo.


Korea.


Ballast. Cargo.


Other I
count


Cargo.


-I-- ---.- .-....-.--. .g.. ... ... . .


----------------------------------.- 1------....
209, 642 ....... -- ...... 36,83
......................... ...... 119,417
445, 021..........--... ...... 50,595


- ----


'aeflc
Lies Total

Bal- ballast.
last.


...... 2,402,2 6
S..... 14,2s


- 1*k : -l k


...... 1,3
...... 285,4O5
...... 6,W
-..... *- -- -
-.--q-


47,139

S2,012
457,552


.-u, fLJ ...... ..... -* ...... ,t
------------------------ .ot IIIII


v V


0-E


;,,,,,lili;iii;;li:IIi;:r,;;I
"""" EjiE:~:,
:


*'' :*:


'^i


I


.
.
.


. . . . . . . .


......................................... 143,488 ......
... .. . ... . ... ... . .. . .... ... . .... .. .... . . ....


P


I


. .


73, 567 ....


t


I










PANAMA CANAL TRAFFIC AND TOLLS.


&


T


ROP AND ORIENTAL COUNTRIES EAST OF SINGAPORE AND COUNTRIES OF OCEANIA (1909)-Continued.


ountrie.


Uni ted Kingdom ...
GermaniEmpire.,..-
Binut*.......
~o.------ ---

38 ln. .......

Nor*way*. ^.*.
TeaaNh...e.......
S wled i -. -... .
Atta. y: ::-. -.--.- -



a --.-----.-----...
lar .- ...^.
Ma n- - -
~ mtt*
~**- ,i


--- --- --- .. ..... .
.* ... -..... .. *..- *
..........................

..........................


*i.+*.................


Clearances.


China)


Cargo.


63,425
53,574
70,615
74,858
-..*. -* -


ljii
*:..'"


Japan.


Cargo.


852,305
196,567
678,760
21,240
S0,367


47,826
47,869


4,213
138,852


1,837,999


96,965





I--
- -** i -
3,84

._.... . *-



*-----.-

237,085


Australia.


Cargo.


New
Zealand.


Ballast Cargo.


953,771 119,266 409,33015


196,388
202,181

65,103
65,486
60,341



209,643


292,951
........


12,209
20,422


11,492


S- .....


20,267


7,001
- - -


168

........
S- .- .


-. .-


2,036,869| 190,657 409,498


Philippine
Isiands.


Cargo.


217,014


- ,*- ----
2,908
* * * '*
34,726
165.543


221,091


Iorea.


!---" "* -
..4.2, ....
i.r.lr.....


Other Pacific
countries.


439,536


43,484


Total

ballast.

(I
2,404,526
498,442

1,068,943
161,206
127,345
62,521
56,576
47,869
393,187
S170,890
S462,957
S 2,180
5,456,642


Total
entrances
and clear-
ances.


4,806,792
1,112,648
2,343,449
446,671
134,047
62,521
103,735
99,941
850,739
309,658
1,556,740
2,180
11,829,101


Scluding Hongkong and foreign spheres of influence.
Including Guam.
* Other British Pacific posseelons.
' Other British and French Pacific possessions.


5Year 1910. All vessels classed as vessels with cargo, except clearances to Japan and Australia.
'Port of Fiume.
SAll vessels passed as esls classed as vessels with cargo, except clearances to Australia.


The distance tables in Chapter I show that the route from Europe to China, Hongkong, Korea,


Philippines via the Suez Canal is so much shorter than that via the Panama Canal that the Suez route will
retain most of the traffic between Europe and Pacific Asia, although the tolls and the fuel costs may be lower
via Panama.
New Zealand and that part of Oceania east of Australia are nearer northern Europe by way of Panama.
Wellington will be 1,564 miles nearer Liverpool by the Panama Canal than via the Suez route, and 500 miles


less distant via Panama than by way of the Straits of Magellan.


The distances to Liverpool from the leading


groups of South Pacific islands will be from 500 to 5,500 miles less via the American Canal than by way of Suez.


The European entrances from New Zealand and the Pacific islands in 1909 aggregated 439,588 tons and the


arances 458,750.


A portion of this tonnage will doubtless continue to move via the Straits of Magellan,


causee the distance saved is sufficient to warrant the payment o
trying perishable products may be expected to use the canal.


f only a light toll. Line steamers and vessels
There are some small duplications in the New


dand tonnage, because vessels to and from New Zealand make calls at Australian ports, but there is but


le tonnage recorded


twice, because the larger share of the trade is handled by chartered vessels.


ought to be a conservative assumption that about 50 per cent of the vessel tonnage between Europe and New


land may advantageously use the Panama Canal.


This credits the European trade with New Zealand with


vessel entrances of 219,794 tons, and clearances of 229,375 ,an aggregate of 449,169 tons.
The distances from Sydney, Australia, and from Yokohama, Japan, to Europe via the Suez route are shorter
than via the Panama Canal, but the differences are not great. Some vessels outbound from Sydney and Yoko-


hama will doubtless take the Panama route. The reasoning o
mostipart, as valid now as it was then. It was then stated t


4 the report of 1899-1901 on this matter is, for the
hat '


The dis e from Liverpool to Sydney, Australia, by way of the Panama Canal and Tahiti will be 150 miles greater than via the


ssL TV.


and the


clei
bec
car
Zea
litt
tho
Zea


-NET REGISTER TONNAGE, EUROPEAN ENTRANCES AND CLEARANCES OF VESSELS TRADING BETWEEN


431.600


xx xx
xxxxxx









PANAMA CANAL TRAFFIC AND TOLLS.


With the advantages or cheaper coal, a cooler passage in the Tropics, quieter seas, and the attMetive force Mof A


heavy tonnage, the American Isthmian route will be used, instead of the course through the Suez Canal, by some of the vessels d
from Europe for Australia or other regions on that side of the Pacific Ocean.


Vessels proceeding from Europe by way of American ports and the Isthmian Canal to Oceania and the East will have the


returning to Europe by way of the Suez or by way of the American route.


By whatever route the European vessels reach th<


Lmericdst
Leptrtig Kgli

choice of. .
e orental


and other countries of the western Pacific, the route by which they return to Europe will be determined by the relative opportunities for
obtaining cargo by way of the Suez and American routes, respectively.
Th reasons for believing that a portion of Europe's imports, from the western half of the Pacific, will come by way of the Ameria


route are stronger than the reasons just cited regarding the use of the American Canal for the European export trade. A vessel ndig
itself in the East Indies, Japan, China, or Australia may either take on cargo for Europe and for intermediate points along the Suez m


or it may load with such cargo as may be available for Europe and American countries and proceed-in most cases but partially loa4m -
aross the Pacific to the western coast of the United States, where a great abundance of cargoes destined for Europe may be obtaine
or the ship may go to Central America and West Indian ports, where a fair amount of freight for Europe will usually be available, ort:
vessel may proceed to Chile or some other west South American country, where there is always a heavy amount of out-bound tra
Besides being certain of securing freight from South America or North America for Europe a vessel returning from the Orient by the
American canal will also have the advantage above referred to of being able to secure coal more cheaply than it cati be obtained ang
the Suez line.
It would seem probable, upon a priori grounds, that vessels leaving Europe, whether by way of the Suez or by way of the Amercuq


canal, will frequently find the return trip via America more profitable than by the route in the opposite direction.
sition, moreover, seems to accord with the evidence regarding the present- round-the-world movement of vessels.


This general pr
The entrance a


clearance statistics of the vessels engaged in the foreign trade of the west coast of North and South America indicate that a large num
of vessels now going out from Europe toward the East return from the West.
At the present time some vessels cross the Pacific to secure cargo on the west coast of the Americas for


transportation to Europe via the Straits of Magellan or Cape Horn.


The tendency for vessels outbound from


Australia or Japan to seek cargo in North or South America will be stronger after the Panama Canal is opened.
If it be assumed that but 10 per cent of the tonnage of the Australian trade and only 5 per cent of the tonnage of
the commerce of Japan with Europe will move through the American canal, the European entrances of vessels


coming from Australia via Panama would be


282,113 tons and the clearances 222,752


the European entrances


of ships coming from Japan via Panama would be 116,797 tons and the clearances 103,754.


The combined


European tonnage moving through the canal in the trade with Australia and Japan would be 725,416 tons.


The above analysis credits to the Panama Canal, of European entrances in the trade with New Zealand,
n


the Pacific islands to the north, Australia and Japan, 618,704 tons, and of the clearances 555,881, ai
of 1,174,585 tons, distributed between vessels with cargo and those in ballast as shown in Table XI.


sible that this tonnage is entirely too small,


a aggregate
It is pos-


because it includes none of the trade of Europe with China, Hong-


kong, Korea, the Philippines, and the East Indies, and but a small proportion of the trade with Australia and
Japan. On the other hand, it allows fully for the distance advantage which the Suez Canal has over the Panama
route. The causes affecting the choice of routes taken by vessels sailing for Europe and for the eastern seaboard
of the United States from Australasia and Asiatic ports north and east of Singapore are considered at length
in discussing the relation of tolls to the volume of traffic that may advantageously use the Panama Canal-
Chapter XI.


VESSEL


TONNAGE OF THE


TRADE


OF THE ATLANTIC-GULF SEABOARD OF THE


UNITED STATES WITH THE


WEST COAST OF SOUTH AMERICA, PACIFIC MEXICO, AND HAWAII, 1910.
The traffic between the Atlantic-Gulf seaboard of the United States and the west coast of North and South


America, including Hawaii, will practically all take the Panama route.


slight tonnage to and from the southern part of Chile.


The only possible exception will be a


At present the commerce


between the United States


and western South America is relatively small; but it should be much larger after the canal has had time to
exercise its influence.


The vessel entrances into the Atlantic-Gulf ports of the


United States from the west coast of South


America in 1910 amounted to 300;909 tons, and the clearances to 166,686, a total of 467,595 tons.


This does


obtainable.











Tran V.----NET


PANAMA CANAL TRAFFIC AND TOLLS.


REGISTER


TONNAGE, ENTRANCES


AND


CLEARANCES,


VESSEL MOVEMENTS


BETWEEN THE


UNITED STATES
(1910).


ATLANTIC-GULF COAST AND PACIFIC -SOUTH AMERICA, PACIFIC MEXICO, AND


HAWAII


Countries.


jjE



:I""x:"
":"

":::"







":


""::




j~i"E,


With cargo. In ballast.


272,601
18,004


10,304
300,909


I - -

' - - .


Clearances.


Withcargo. In ballast.


166,302


384


Total en-
trances and
clearances.


372,000
20,599
14,482
20,544
39,970
467,595


' Fiscal year 1911; all clearances classed as vessels with cargo; entrances from original abstracts.


The figures in Table


V may somewhat understate the actual tonnage; because,


under the rules of the


argo, unless the bulk of the cargo is destined to some other foreign port.


This partly accounts for the great


difference between the entrances and clearances in trade between the eastern seaboard of the United States


and Pacific-American countries.


The actual vessel entrances into our eastern ports from Pacific America,


however, are much in excess of the clearances; because our imports from the west coast of the Americas are


greater, both in value and bulk, than our exports to that part of the world.


made to the recorded clearances, as stated in Table V
without change.


Some addition might possibly be


but it has been thought best to accept the figures


ENTRANCES AND CLEARANCES IN THE TRADE OF THE ATLANIC-GULF SEABOARD OF THE UNITED STATES WITH
OCEANIA AND THE ORIENT EAST oF SINGAPORE.

It is especially difficult, for the following reasons, to obtain accurate statistics of the vessel movements
made in carrying on the trade between our Atlantic-Gulf Seaboard and the Orient and Pacific Oceania:
(1) A portion of the commerce is handled indirectly by way of Europe, and the cargoes there transshipped
are credited to our commerce with Europe instead of to our trade with the Orient and Oceania.
(2) Some vessels engaged in our trade with points east of Singapore load and discharge freight en route at


points in southern Asia.


Our records of entrances and clearances may thus credit to countries west of Singapore


tonnage that should be credited to countries beyond Singapore.
(3) The recorded entrance and clearance statistics of the vessel movements between the eastern seaboard
of the United States and Oceania and the Orient east of Singapore are so small in comparison with the known


volume of this trade that the figures for vessel movements can not be accepted at their face value.


The tonnage


of shipping recorded as having entered and cleared at American ports could not possibly have transported the
traffic that was exchanged.


TABrE


VIT[--NET


REGISTER


TONNAGE,


ENTRANCES


AND CLEARANCES,


VESSEL MOVEMENTS


BETWEEN THE


UNITED STATES ATLANTIC-GULF COAST AND ORIENTAL COUNTRIES EAST OF SINGAPORE AND COUNTRIES
OF OCEANIA.


Entrances.


Ballast.


43,651
26,885


108,633


Clearances.


Cargo.


123,708
62,817
93,008


Ballast.


S. 10. 300
10,300


Total en-
trances and
clearances.


167,359
89,702
215,550


United States as to recording clearances,


vessels are cleared to the first foreign port at which they discharge


China.. . ......... ........... ........................... .. ................... ...


Honong ng .. ...................................................* .


Japan ...-...


Countries.


Cargo.


5Ch'e. .. -..... .... . ..------------....--............................................................. .....



ai --..-.... ...------------------------------------ .-----------------------...--..------.......-...................


obl......... Kexioo...............-..-...-..........-..................... ............-................


1








30 PANAMA CANAL TRAFFIC AND TOLLS.
The recorded entrances and clearances of 898,679 tons, as stated in Table VT, should be increased by the
vessel tonnage required to handle the trade carried on between the eastern seaboard of the United State
Pacific countries indirectly by way of Europe. The Panama route from New York to Yokohama via
Francisco and the great circle is 3,768 miles shorter than the Suez route; to Shanghai the distance via P
is 1,876 miles less. Hongkong and Manila are almost equally distant from New York via the Panama a
Suez routes. Sydney, Australia, is 3,932 and Wellington, New Zealand, 5,590 miles nearer New York v i
the Panama Canal -than via the Good Hope route; and Wellington is 2,493 miles nearer New Yorkvia h
Panama Canal than by way of the Straits of Magellan. With the possible exception of a portion of the togi
moving to and from Hongkong and the Philippines, the bulk of the trade of our Atlantic and Gulf ports
the Orient east of Singapore and with Australasia and Oceania will use the Panama Canal. Some vessel


engaged in the trade with Hongkong and the Philippines will continue
and the ports in southern Asia. Likewise, some vessels will sail from
the Suez and will return to Europe via the west coast of the United Sta


According to the state:
portion of the imports into
Our records state that but
have required a larger tonn
imports from the Orient, hov
by way of Europe. It is esi
Oceania and 5 per cent of ou
are not recorded as entering
The portion of the expo:
does not exceed 25 per cent.
as in the case of imports.


ments of exporters, steamship agents, and
our Atlantic and Gulf ports from Oceania is
9,985 tons of vessels entered directly from
age of shipping had all the imports been
ever, are nearly all brought to us directly.
timated by those engaeed in the trade that


lr imports from the Orient east
from the countries of Oceania
rt trade from our Atlantic-Gulf


of Singapore
or the Orient
coast to Ocea


to take the route via the Suez
Europe for Hongkong and Manila
ites and the Panama Canal,
navigation companies, a coiider
handled indirectly by way of "Euro .
Oceania, whereas our import's wi
brought directly from Oce.ania, Ou
They do not reach us, in large amounts,
about 90 per cent of our imports fro
reach the United States in vessels that

rnia that is handled indirectly probably


The percentage of the exports to the Orient shipped indirectly is about the sam


The total imports credited to the Atlantic and Gulf ports of the United States from Oceania and the Orient
east of Singapore, in 1910, were valued at $66,483,000. Some of these imports entered by way of our Pacifio
coast ports. Indeed, in 1910, the Atlantic and Gulf ports received by rail from the Pacific ports imports valued


at $9,770,073. Moreover, the New York 4
$3,715,619 were received at New York by way
The ratio of New York's 1911 to its 1910


customhouse reports state that, in 1911, imports appraised at
of the Canadian Pacific Railroad and the ports of British Columbia.
imports from Oceania and the Orient, applied to the 1910 imports


from those sections into the other ports than New York on the Atlantic seaboard of the United States, wold
make the approximate value of all imports at the Atlantic and Gulf ports received through Pacific coast ports
in 1911 about $13,927,900. This sum deducted from the total value of the imports of the Atlantic and G~
ports from Oceania and the Orient east of Singapore, leaves $52,555,000.
If it be assumed, as it probably may safely be assumed, that 90 per cent of the imports from Oceania and
5 per cent of the imports from the Orient to our eastern seaboard are at present received indirectly, then the
indirect imports aggregate about $18,418,700, or 35 per cent, of the total received by water. If it, also, be
assumed that 25 per cent of the exports from our Atlantic and Gulf ports to Oceania and 5 per cent of those
to the Orient east of Singapore are handled indirectly, the indirect exports would aggregate about $8,996,000,


or 12 per cent, of our
adopted after advising


total exports to the trans-Pacific sections under consideration. These ratios have been
with some of the principal steamship companies engaged in our oriental trade.


A portion of the tonnage of ships that enter the Atlantic ports of the United States from southern Asiatic
countries should be added to the recorded entrances from the Orient east of Singapore and Oceania. The
Bureau of Statistics reports the entrances from southern Asia to be 339,429 tons, or 29 per cent in excess of
the entrances from countries east of Singapore, whereas the imports of the Atlantic and Gulf seaboards from
southern Asia exceed those from the remainder of the Orient and from Oceania by only 23 per cent. The
recorded entrances, as given in Table VI, may, therefore, properly be increased by about 6 per cent in order








PANAMA CANAL TRAFFIC AND TOLLS.


the trade with Oceania and the Orient east of Singapore 715,680 tons, and the entrances 370,151 tons, a total
of 1,085,831 tons.
In view of the known volume of trade between the Atlantic and Gulf seaboards of these countries, a vessel
tonnage of 1,085,831 tons must be regarded as too low. In the reasoning in the above paragraphs liberal allow-
ances were made for the trade handled indirectly by way of Europe, but it is evident that the tonnage recorded
by the Bureau of Statistics as having entered directly from, or as having cleared for points beyond, Singapore
must be much below the actual vessel movement. The value of the total trade between the Atlantic and Gulf
seaboards of the United States and Oceania and the Orient east of Singapore in 1910 was $130,444,945; and,


after deducting the imports by rail from the Pacific ports, the trade by water was valued
The trade of the same countries with the United States via our Pacific ports and by way


Ei


SB^






: /3 i
IM ""




!M
/ i


1910, valued at $101,418,178; and if the in-transit


est coast of the United States be added, the t(
the trade between the eastern ports of the
from those foreign sections via Europe are
Orient and Oceania. Were this trade via
I, the difference between the value of the tra
United States would be still greater.
at the eastern ports of the United States w


han
rrts
Pacif
the
our
for


the value of our trade carried on w
of the United States, the Bureau o
ic ports of the United States. The
United States and Oceania and the
Atlantic and Gulf ports, because
the reason that more of the traffic


)tal value
United St
credited


at about $116,517,000.
of the northern border
import trade through
becomes $115,346,170.
states and Oceania and
to our commerce with


Europe added to the recorded


rde with Oceania and the Orient

ith Oceania and the Orient east


ith those trans-Pacific sections at
f Statistics recorded entrances and
tonnage of vessels engaged in the
Orient would be somewhat larger
the exports from our Pacific ports
across the Pacific moves in regular


steamship lines carrying passengers as well as freight; but the difference between 2,512,697 and 1,085,831 tons
ia excessive.
The records kept by the New Panama Canal Co. showed that, in 1899, there were 1,271,357 tons of vessel
movements between the Atlantic and Gulf seaboard and Oceania and the Orient; butt their records were for
a somewhat wider area in the Orient than is included in the above analysis.
The report of the Isthmian Canal Commission in 1901, after discussing the statistical problem here under
consideration, accepted for the total entrances and clearances between the Atlantic-Gulf ports of the United
States and Oceania and the Orient east of Singapore double the tonnage of the recorded clearances. If the
same method were now followed the total entrances and clearances for the trade under consideration would be
1272,320 tons. It was stated in the report of 1899-1901 that the total of entrances and clearances was probably
more than double the recorded clearances, and it is doubtless true that the actual vessel movements to-day are
i excess of double the tonnage of the recorded clearances from our Atlantic-Gulf coast directly to Oceania and
oriental countries beyond Singapore.
It would hardly be possible to handle the volume of trade now carried on between the Atlantic-Gulf norts


of the Uni
/ oar Atlant
In accept
openingof
from the p
'Unquestior
.^*^U111 t/lll


.ted States an
ic-Gulf ports c
ng this as the
the Panama
resent routes
aably some of


d Oceania and the Orient beyond Sii
if less than 1,500,000 tons, and this to
probable tonnage, no allowance has
Canal, of an appreciable volume of t
via the Pacific ports of the United S
the trade of the eastern and middle


countries will be diverted from the transcontinental railroads
leading to the Atlantic and Gulf ports and to the steamship i


agapore with vessel entrances and clearances at
>nnage is believed to be a conservative estimate.
been made for the probable diversion, after the
rade between the United States and the Orient
States to routes via the Atlantic and Gulf ports.
sections of the United States with trans-Pacific
and the routes across the Pacific to the railroads
ines from those ports through the Panama Canal


to and from the Orient.
TheP tol~tal tewnnnaue nf VCrSaI mnvAnnntn hKtwiln lAtIn nos0t nr rrtit ti-ia TT0nAo^ g..0..- arti flnanrn nne-i


ports of the United States was, in
our Atlantic and Gulf ports to the w<
This sum is less than the value of
the Orient. Moreover, our imports
Erope, not to our trade with the
trade of the Atlantic and Gulf ports
via the east and west coasts of the
Though the value of the trade
ofSingapore was greater, in 1910, t
the Pacific and northern border po
earances of 2,512,697 tons at the
trade between the Pacific ports of
than the corresponding tonnage at
include bulkier products, and also


0Th


*:E"::-




a1u~ir~


PANAMA CANAL TRAFFIC AND TOLLS.

VESSEL TONNAGE ENGAGED IN THE PRESENT TRAFFIC AOBOSS THE ISTHMUS rF PANAA.


...

>Thl


The tonnage of vessels entering and clearing at Colon and Panama is exceptionally large in comparison with
the amount of freight actually loaded and discharged. The following table, Number VII, shows that the teo-'
nage of entrances and clearances at Colon, in 1909-10, amounted to 3,716,573 tons, and at Panama to 777,9598
tons.


TAr


VII.-NET


Atlantic coast of Panama...
Pacific coast of Panama....
Total ...................


REGISTER


TONNAGE,


ENTRANCES AND CLEARANCES
PANAMA, 1909-10.


. .. ... .... . . .... .. . 4..*. .....- .... 4. *.*.4,, 4 - .. -
* 4 .4 .. 4 4. 4 4.- 4 4 4 -.4 4 4-. .. .,.4 .....-..-.4.4....-. --. 4 -.--.- ..
-.I 4 4 - 4 4 4 4**11 1 1


OF VESSELS


Entrances.


1,870,063
388,060
2 258, 123


AT COLON


Clearances.


1,846,510
389, 89
2, 26,409


4,49,5


The Panama Railroad in 1909-10 carried 236,241


tons of through freight from Colon to Panama arnd


145,017 tons from Panama to Colon. Twenty-eight per cent of the total freight moving from Colon to Panala
was through freight, and of the total moving from Panama to Colon, 45 per cent was through freight. If these
ratios be applied respectively to the vessel entrances at Colon and at Panama they produce a total of 698,244
tons. It is assumed that this tonnage of shipping was required in 1909-10 to bring to Colon and Panama the
381,258 cargo tons of through freight that crossed the Isthmus.
Panama, and more particularly Colon, are ports of call, and vessels entering and clearing them have cargo
for many other places. The tonnage of vessels used to carry to and from the Isthmus the 381,258 tons of
freight that was taken across Panama in 1909-10 can not be regarded as the tonnage which would have been
required if the canal had been in existence. It is assumed that most of this freight would in that case have
been carried by vessels that passed through the canal and not by ships using Colon and Panama as ports f
call. In estimating how great this vessel tonnage would have been, the Colon entrances and clearances must
be disregarded because of the large amount of Isthmian Canal Commission freight and because Colon is a


port of call for a large number of ocean lines that carry passengers as well as fre
clearances at the port of Panama are likewise to be accounted for in part by the I


en route, but th
Canal Commissi
It may app


ight. The entrances and
lact that vessels call there


ie tonnage of such vessels as well as the shipping employed to carry freight to Panama for the
ion is much less than is the corresponding shipping entering and clearing Colon.
larently be assumed that one-third of the clearances from Panama are either of vessels that have


called en route or are of ships that have brought goods to be used on the Canal Zone, and
two-thirds of the clearances, 259,932 tons of shipping, were employed in transporting from P
tons of through freight that reached Panama from Colon for shipment to points beyond. The
freight moving by rail from Panama to Colon is 61 per cent of the tonnage moving in the
and it is probable that the tonnage of vessels that entered Panama to bring in the 145,0
freight mo-nng northward across the Isthmus is approximately 61 per cent of the tonnage
at Panama, or 158,558 tons. By this reasoning the total tonnage of entrances and clearance
the trade via the Isthmus in 1909-10 becomes 418,490 tons.


that the remaining
'anama the 236,241
tonnage of through


opposite direction,
17 tons of through
of vessel clearances
es to be credited to


The figures used in the above estimate are based upon the traffic of 1909-10. The trans-Isthmian trade
in 1910-11 was larger than during the previous year, but in the estimate here made the data for 1909-10 were
taken because the 1910-11 figures for vessel entrances and clearances were not obtainable, and because most
of the statistics in this chapter are for 1909-10.


VESSEL TONNAGE OF THE TRADE OF EASTERN CANADA


WITH ALASKA, CHILE, AND AUSTRLIAn.


:: :









PANAMA CANAL TRAFFIC AND TOLL


:: F:



















ii^


, ENTRANCES AND CLEARANCES,


S. 33

VESSEL MOVEMENTS BETWEEN


Countries.


ij.aaiEt- m *1 iti>*- --,* -- -- *< - --* .-* *- *-- --* - ..*-** ** *- *--*

(3Ii ci ,* *- -*<.**-*-*.-. *a -*.- a -- *- - <. - - a- - a - - -- --. --* a -
T a S S a*~ ..aa. .,.-.-a a ...---,- - --a a,- .-. ,- -.- ,--- -..


1 Entered eastern Canada from Alaska, Chile, and Australia.
SCleared from eastern Canada to Alaska, Chile, and Australia.
SAll clearances recorded as with cargo.


VIII shows that in 1910, 35,658 tons of vessels moved directly from eastern Canada to Alaska,


Chile, and Australia.


States, this tonnage may be accepted without change. The Australiar
the trade of eastern Canada with Australia has not been developed.


eastern Canada and Australia via Europe, but this would be included in the tonnage of vessels moving between
Europe and Australia.

THE AMERICAN--HAWAAN STEAMSHIP CO.'s ADDITION TO THE TONNAGE OF THE PANAMA CANAL.

Since 1907 the American-Hawaiian Steamship Co. has maintained a service between New York, San Fran-


l t


onnage in Table VIII is small, because
There may be a slight traffic between


eisco, and Hawaii by way of Tehauntepec and the railway across that Isthmus.


The entrances and clearances


of the vessels employed in that trade during the fiscal years 1910 and 1911 are shown in Table IX:

TABsB IX-.-NET REGISTER TONNAGE, ENTRANCES AND CLEARANCES, AMERICAN-HAWAIIAN STEAMSHIP CO.'S
FLEET, 1910 AND 1911.


Entrances at New York from Puerto, Mexico.....................................


Clearances from New York for Puerto, Mexico........................................................................................................
Entsra es at u Francisco from Salina Cruz..-...... .... ... ...-.. ......... ............................................... .................... ......
Clearaances from Sa tt Francisco for Salina Cru ........................................................................................................


Entraances at Hawaii from Salina Cru ...........
Clearances from Hawaii for Salina Cruz..........


a.a,------------------------------------a. -----------------------a ,.. a., a a. .... a...,...-.a...........................................
- a- -a-------------------------------------a--------------------------------a------------------------------aa aa a .- .- -, -----------aa---------------------


215, 683
218,539
218,181
97,014
138,261
135,422


243,943
244,887
263,038
124,796
157,339
129,824


To accept without analysis these clearances and entrances as a measure of the tonnage Which the American-
Hawaiian fleet would have caused to pass through the Panama Canal in 1910 and 1911 would exaggerate the
tonnage. The vessel movements between New York and Puerto Mexico, can not, however, be taken as the ton-
nage which would have used the canal; because if the vessels had been operated through a Panama Canal to
San Francisco and Hawaii, they would have made fewer trips than they made between New York and Puerto
Mexico.
A better measure of the vessel tonnage to be credited to the available canal traffic on account of the present
trade by way of the Isthmus of Tehauntepec may be obtained by estimating the number of runs each vessel of
the American-Hawaiian Co.'s fleet would make in a year from New York to the west coast and back via a Panama


Had the fleet in service during 1910 been operated through the Panama Canal, it would have added


.6s.426 t d7 to thpe tonwnae usIin the waterway.


Five, additional vessels of 4.250 tons each were then beinj


AND ALASKA, CHILE, AND AUSTRALIA (1910).


Table


As in the case of shipments from the eastern to the western seaboard of the United


Canal.


TAn VIL--NET REGISTER TONNAGE
EASTERN CANADA
4


8^




Hia 'r":!go"'ag'r


PANAMA CANAL TRAFFIC AND TOLLS.


TONNAGE OF VESSEm3 MOVING BETWEEN THE EASTERN AND WESTERN SEABOARDS OFr l UsNLpE STATS
VIA THE STARTS OF MAGELLAN.


The coasting trade between the two seaboards of the United States by way of the Straits of Magellan an4d


Cape Horn, in 1910, amounted to 1


72,655 tons, 117,147 of which were entrances


at Pacific ports and 55,508


clearances therefrom.


Over 50 per cent of the vessels moving from the Atlantic to the Pacific ports of the


United States clear from our west coast to Europe, from whence they return to the United States.


SuMArY.


sumn


The foregoing detailed statistics of the vessel tonnage that might have used a Panama Canal in 1910 a8
narized in Tables X and XI. Table X states the entrances and clearances above considered just as they


were taken from the tonnage reports of the United States and of various foreign countries.


As far as possibe u


separate figures are given for clearances and entrances, for vessels with cargo, for vessels in ballast, for saing
vessels, and for steamships.


TABLE X.--UMMARY


OF RECORDED


WOULD


NET REGISTER TONNAGE OF VESSELS EMPLOYED


HAVE


USED THE


PANAMA


CANAL IN


IN COMMERCE THA4


1909-10.


TOTAL ENTRANCES AND CLEARANCES, AS STATED IN ABOVE TABLES, WITHOUT DEDUCTIONS.


Europe with-


Western South America.


Western Central America andPacific Mexico................
Pacific United States, British Columbia, and Hawaii........-
Pacific coast of United States, via Suez Canal ................
Oriental countries east of Singapore, and Oceania...........
Eastern United States coast with-
Western South America, PacificMexico, and Hawai.........


Pacific coast of United States (via Cape Horn)


Pacific coast of United States and Hawaii (via American-


Hawaiian Steamship Co.)


Oriental countries east of Singapore, and Oceania..


:..........
........a.-


Panama traffic-


Pacific coast..........
Atlantic coast.........


Eastern Canada with-
Alaska, Chile, and Australia.
Total......................


Entrances.


With
cargo.


1
1,978,592
40,394
419,865
(1)
6,145,757


300,909
(1)

215,683
258,910


(1)
(1)


10,177
9,370,287


In bal-
last.



29,265

- -* -

(1)
226,702



(0)


3,609


(1)
(1)


3,233
262,809


8a
2,027,288
59,357
257,054
(1)
5,023,132


166,302
(1)


625,860


(1)
(1)


20,770


4
150,312


12,799
(1)
433,510


384




10,300


(0)
(1,)


1,478


8,398,302 608,783


Total en-
trances.


2,007,


40,394
419,865
()
6,372,459


300,909
117,147

215,683
262,519


388,060
1,870,063


13,410
'12,008,366


Total clear-
ances.


2,177,600
59,357
269,853
(1)
5,456,642


166,686
55,508

218,539
636,1600


1,846,510


In total entrances and clear-
ances are included-


191 468,726


59,448
160,454


247,552


S6,686
(1)


42,924



8,225


2,096


11,299,002 1,040,403 996,111


tonnage.


9
1,054,917
65,942
354,041


449,131


16,990
(1)


74,6


2,036,514


Total enZ
trances and
clearances.


10
4,185,457
99,751
689,78
158,000
11,829,101


467,595
172,655

434,222
898,695



3716,573


35,4658
'23,46,368


1 Notreportedwhetherwith cargoor in ballast, but thetotals are entered under" Total entrances" and "Total clearances," with theexception ofthel8,000tons


"Paul


coast of United States via Suez Canal," which can be included only in the final column, Total entrances and clearances.' In the entrance and clearance figures for the
Pacific coast of the United States via Cape Horn, steam and sail tonnages are not separated.
2 Not including Hawaiian traffic.
Entrances and clearances at New York from and to Puerto Mexico. For tonnage at Salina Crus, Hawaii, and San Francisco, see Table IX.
4 The "Total entrances" and "Total clearances" exceed the sum of the entrances and clearances "with cargo" and "with ballast" by the amount of the tonnage not
subdivided into "with cargo" and "in ballast." Moreover, the final column of "Total entrances and clearances" includes 158,000 tons--Pacific coast of United States via
Suez Canal-not comprised in the preceding columns


Clearances.


:: EEI


,P
";llc;r;:"il


i










PANAMA CANAL TRAFFIC AND TOLLS. 35


The entrances and clearances after the duplications, shortages, and overstatements of the recorded tonnage


have been eliminated are presented in Table XI.


The total tonnage of vessels that might have advantageously


used the Panama Canal in 1910 was 8,328,029 tons.


TABLE XI


.-NET REGISTER


TONNAGE OF VESSELS


THAT MIGHT HAVE ADVANTAGEOUSLY USED A PANAMA


CANAL IN 1909--0.


TOTAL ENTRANCES AND CLEARANCES,


AS STATED IN ABOVE TABLES. WITH PROPER DEDUCTIONS.


tuapepwith-


Wtem South Ameris....


:"iE
: .:i* '


Oriental countries east of Singapore, and Oceania....


..p.....


Panamabtrafo-


Pacfle ecest-...-..-
Atlanti coast .........

Eastern Canada with-


Alaska, Chile, and Australia.
Tot-al --.. --.... ------


-p-*p-.. -*...................................................


*----------------.**..** .**... ...* :.
... . ,-,................................


Entrances.


1,524,622


604,831


S 300,


10,177


3,714,505


2
29,265



(I)


3,233
54,771


Clearances.


444,201J 150,312L


118,714
257,054


522,0781


166,302


181,713
885,600


20,770
3,596,432


33,803


14,400


(1)
(1)


213,176


Total en-
trances


1,553,887
80,788
419,865
(1)
618,704


300,909
117,147

181,713
600,000


158,558


13,410


4,044,981


Totalolear-
ances.


1,594,513
118,714
269,853
()
555,881


166,686
55, 508

181,713
900,000


259,932


22,248


34,125,048


In total entrances
ances are inclu


Sail en-


586,191 468,726
12,988 118,896


19,587


24,934


10,304
(1)


31.715


861,634


160,454


32,072


6,686
(1)


42,924


831,854


and elear-
ded-

Total
sail
tonnage.

9 ,


1,054,917
131,884
354,041


57,006


16,990
(01)


74,639


1,693,


Total en-
trances and
clearances.



10
3,148,400
199,502
689,718
158,000
1,174,585


467,595
172,655

363,426
1,500,000


418,490



35,658
88,328,029


SNot reported whether with cargo or ibaast, bt thetotalsare entered under "Total entrances"


fBgvreaft
agi

Not
STh
subdivid
SuesO Ca

S


and "Total clearances,


coast ofthe United States via Suez Canal," which can be included only in the final column, "Total entrances and clearances."
r the Pacific coast of the United States via Cape Horn, steam and sail tonnages are not separated.
including Hawaii.


e*Total entrances" and "Total clearances" exceed the sum of the entrances and clearances "with cargo" and


" with the exception of the 158,000 tons


In the entrance and clearance


"in ballast" by the amount of the tonnage not


ed into "with cargo" and "in ballast." Moreover, the final column of "Total entrances and clearances" includes 158,000 tons-Pacific coast of United States via
al--not reported in the preceding columns.


separate figures for vessels with cargo and in ballast are not available in every case.


The official reports


distinguish between cargo and ballast vessel movements as regards 7,578,884 tons, or 91 per cent of the aggre-
gate. Of this total, 7,310,937 net tons were for vessels with cargo, and but 267,947 tons were for vessels in ballast.
Thus, 96 per cent of the tonnage which might have used the canal in 1909-10 was made up of vessels with
cargo. In the same year 95.7 per cent of the tonnage of the Suez Canal consisted of vessels with cargo.
The statistics distinguishing between sail and steam tonnage include 8,155,374 tons, or 97a- per cent of


the


)tal.


Of this tonnage, but 1,693,488 tons, or 20. per cent were for sailing vessels.


The recorded tonnage of sailing vessels aggregated 2,179,951 tons.


duplications, overstatements, and shortages,


In revising the figures so as to avoid


the recorded sail tonnage between Europe and western South


America, Pacific United States, British Columbia, and Hawaii was accepted without change, because the sailing


esterneit al Amera and Pacific Mexico.........-....,-.
Pacific United Sates, British Columbia, and Hawaii ........
Pi U Unilte States via Suez nal.......................
Odentalcountrieseaatofngapore,and Oeania............
Eastern United States coast with-
Wester South America, Pacific Mexico, and Hawaii.........
Pa coast of United States (via Cape Horn) ............
Pacific coast of United States and Hawaii (via American-
Hawaiian Steamship Co.).......4 ...................


te


!,, *,"
::i:
,E


E"






EE
""


**_ ~Y




AN AN N


PANAMA CANAL TRAFFIC AND TOLLS.


vessels are chartered ships that usually carry full cargo for a single destination. The tonnage of sail entrances
and clearances for the trade between Europe and western Central America, Mexico, Oriental countries east of
Singapore, and Oceania was revised according to the methods previously applied to the combined tonnage of
sail and steam vessels. The sail tonnage between the eastern United States and the Orient and Oceania was ac-
cepted as recorded, because the indirect shipments via Europe are not made in sailing vessels. The sail tonnage
for the trade between the eastern United States and western South America, Pacific Mexico, and Hawaii was
also accepted without change. No sail tonnage was allowed for the shipments across the Isthmus of Panama,
because none was recorded at the port of Panama in 1910. The sail tonnage moving between eastern Canada and
Alaska, Chile, and Australia was accepted without change.


It may be contended that this
because sailing vessels will not use
vantages of the canal in the trade
that sailing vessels will not use the
vessels to be employed elsewhere.
vessels employed in the commerce


sail tonnage should not be included in the tonnage of available canal traffic
the canal. The sail tonnage should, however, be included, because the ad-
of the various regions considered are so manifest that the very certainty
canal will cause steamers to be shifted to the canal routes and cause sailing
Sailing vessels account for but a relatively small share of the total tonnage of
of the regions tributary to the canal. After the canal is completed, these


sailing vessels will be employed on other routes.
The opening of the Panama Canal will necessarily hasten the substitution of steamers for sailing vessels
in the world's commerce; but the effect will simply be to quicken a change now in progress. The world's seagoing
sail tonnage declined from 14,185,836 tons in 1873-74 to 11,636,289 in 1888-89; to 8,693,769 in 1898-99; and
to 6,412,211 in 1910-11; while steam tonnage increased from 4,328,193 in 1873-74 to 41,061,077 in 1910-11.


* y


j::

:E:
:E


~
iirr
"::

















































CHAPTER III.



INCREASE IN AVAILABLE CANAL TRAFFIC


1899 TO 1914-15.


37
xx4
I:








































il<:+.
: x i .x










































'"*xx xx






*

4II


II.


**











S E:
4:


The investigation of traffic statistics in accordance with the methods explained in
shows that had the Panama Canal been in existence during the fiscal year ending June 30
tageously have been used by vessels with an aggregate net register tonnage of 8,328,029.
ring, with all possible accuracy, the traffic available for the use of a canal was to find
more important question of what the available tonnage will be in 1914, at the time of the (


CanaL Intelligent action in fixing the canal tolls requires a knowledge
charges may be levied. The purpose of transit dues is to secure revenue
the product of the rate of tolls and the volume of traffic.
In the report of the Isthmian Canal Commission,' published in 1901, a
tions that were made to determine the net register tonnage of the traffic
an isthmian canal during the year 1899. It was found that the statistics
an available traffic of somewhat less than 5,000,000 tons net register-
vessel movements that had been kept by the New Panama Canal Co. she
over 5,000,000 tons, the exact figures being 5,001,798 net register. In t
traffic of 1910, as determined by the investigation of entrance and clear


the preceding chapter
,1910, it might advan-
The purpose of meas-
in answer to the much
opening of the Panama


of the volume of traffic upon which
, and the receipts at the canal will be

mn account was given of two investiga-
that might advantageously have used
of entrances and clearances indicated
-4,891,075 tons; while the records of
owed an available traffic of somewhat
he following table the Panama Canal
rance statistics, is compared item by


item with the corresponding statistics for 1
to be found in the 1899 column. Thus ti
table is of especial value because it shows
with western South America, and because
between the west coast of the United States


bhe year 1899. Three items appear in the 1910
he figures for the two periods are not entirely
the rapid increase in the commerce of Europe a
it indicates the comparatively small volume o
and the Atlantic seaboards of the United States


column that
comparable,
nd the Unite
if traffic now
and Europe.


are not
but the
d States
moving


TArms


1.-VESSEL


TONNAGE,


ENTRANCES


AND


CLEARANCES,
AND 1910.


AVAILABLE


PANAMA


CANAL


TRAFFIC,


1898-99


1909-10


Europe with-
Wster Southi America ..... ......... ........................................... .........
Western Central American and Mexico....... .. ..........................................
Pacific United States, British Columbia, and Hawai ......................................
Pacific United States via Se Canal .. -......................- ........... .................
Oriental countries east of Singapore and Oceania. .........................................
Eastern seaboard of United States with-
Western South America, Pacific Mexico, and Hawaii ............ .....-.............-....
Pacific coast of United States via Cape Horn .............................................
Pacific United States and Hawaii via American-Hawaiian Steamship Co ..................
Oriental countries east of So gapore and Oceania ..........................................
Pntamm trafe c...............................
Eatern Canada with Alaska, Chile, and Australia ............ .. ..............................
Total .... .................................... ......................... ...................


ft. f h -- ft. -U. .ft.ft.ft.ft ft..ft.... ft.... ft f U- - - ft. f -
-f tf tf** tf-tt** ft ft f fi f ft ft f-*f f ft f ft ftf-- -





1..... .....1 .... .. ... .. ... .. .. ... .. ... .. ..

1...1 ....... .... ... .... ....... .... ... .... ...
* -ft t f ftft t f ftft t f ft ftft t .ft t f t f t ft U ... ft U t f ftft t f ftft -t ft- f
Uf ftfUfffftt .ff t .ftf .ff tt ft fft .f ..Uf.tt.ftfft ft .fft-

* ft.ftfffftff ftt f .ft ..U .f ..tf t U ..f f.. .ft tU .U.t- -


1,771,858
140,000
642,180

816,223

166,364
109,312


908,140
336,998

4,891,075


3,148,400
199,502
689, 718
158,000
1,174,585

467,595
172, 655
363,426
1,500,000
418,490
35,658
8,328,029


Item.


4
III:.,



4








II: *
*:.


CHAPTER III.

INCREASE IN AVATIABLE CANAL TRAFFIC 1899 TO 1914-15.




'a-EB


PANAMA CANAL TRAFFIC AND TOLLS.


cent per decade.' If the rate of increase that prevailed during the decade ending in 1910 shall continue during
the five yeams ending in 1914-15, the growth for the five years will be 26.08 per cent, and the tonnage in 1915
will be 10,499,799-practically 10,500,000 tons.
Is it safe to assume this rate of increase during the five years ending in 1915 ? This question can best be
answered by ascertaining what the actual rate of increase has been in the commerce of the world and of he
leading sections of the world during the past decade.
If it be found that the increase in the available canal traffic from 1899 to 1910 is no greater, or is less, than
the rate of growth prevailing in the commerce of the leading sections of the world, it will presumably be safe
to conclude that the increase in the available canal traffic of less than 60 per cent per decade during the 15 yeas
1900-1915, will result in a conservative estimate of the traffic that may advantageously annually use the Panam
Canal during the first years of its operation. A study has been made of the increase in the value (1) of the foreign
trade of the 22 leading countries of the world, (2) of the trade of the United States with foreign countries
(3) of the commerce of the United States with non-European countries, (4) of the commerce between the Atlantic-
Gulf seaboard of the United States and Pacific countries, and (5) of the commerce between European and
Pacific countries and the west coast of South and North America. An analysis has also been made of the growth
in the volume of traffic using the Suez Canal. The results of this study are summarized in the followiJ
paragraphs.
The investigation here made of the growth in the value of international commerce is to assist in deciding
whether the rate of increase in the volume or tonnage of available canal traffic from 1899 to 1910 may be pre-
dicted for the five-year period ending in 1915. Such being the problem, it becomes necessary to reduce all
percentages of increase in the value of commerce sufficiently to eliminate the effect of rising prices upon
the value of commerce. The effect of rising prices upon the percentages of increase in commercial values can
be offset by reducing value increases by the percentage that prices have risen during the decade. The rise in.
general prices from 1899 to 1910 may be computed from the index numbers compiled by the London "Econo-
mist," by Sauerbeck, by the United States Bureau of Labor, and by "Bradstreet." Most of the figures cited in
the following pages refer to the decade 1900-1910, but inasmuch as a few of the figures are for the 10-year period
.ending in 1909, the percentages of price increases for two decades, one ending in 1909 and the other ending in
1910, are stated in Table II.
1 To determine the rate of increase for one or more years when the total percentage of increase for a period of years is known, the following formulas may be used:
Formula to find rate per annum.
A-p (l+r)a
A-amount after n years= 8,328,029
A r=rate per annum
p= amount at first date= 5,001,798
n-""number of years after first date=11.
Formula to find amount in tenth year.
A-p (I+r)
A- amount in tenth year
B p= amount in first year=5,001,798
r= rate per annum
n= number of years after first date=10.
Formula to find rate of increase for decade.
per cent increase
C A-amount in tenth year
p-amount in first year.


jj?
E:
EiEII
:y





































j: .
|1


TA
/ix,;


1899-1909


1900-1910


NCruesrba*.... .........-....................................-.....-. -.-..

United State Bnresa of cor........................................................

Average Geat Britain (Economist and Sauerbeck)............. ....................
Averae Uited States (Burea of Labor and Bradstreet) ........... ........-..-..
General average .................r.............................. .... .. .. -..


Per cent.
12.2
12.6
24.5
23.6
12.4


Per cent.
13.7
4.0
14.4
12.6


The relatively low prices of 1899 compared with the high prices of 1909 give a large percentage of increase
in prices for that decade, particularly in the United States. Prices in 1910 were not so much above those of 1900
as were the prices of 1909 in excess of those prevailing 10 years earlier; but even during the decade ending in
1910 there was, particularly in the United States, a relatively large increase in average prices. In order to secure
a percentage which represents as nearly as possible the actual increase in average prices, the mean has been taken
of the percentages shown by the two English price indexes and the mean of the two American price indexes.
The value of the international commerce of the 22 leading countries of the world has increased 58.4 per
cent during the decade 1900 to 1910. The following table, compiled from the reports of the United States
Bureau of Statistics, shows the increase during this decade in the imports and exports of these countries.

TABLE III.-INCREASE IN THE FOREIGN TRADE OF TWENTY-TWO LEADING COUNTRIES, 1900-1910.1


Year.


1910 ....................................................
m910 .............................................-..-l


Imports.


$9,532,615,165
15,199,868,105


Exports.


$8,485,860,991
13,357,891,025


$18,
28,


1 Argentina, Australia, Austria-Hungary, Belgium, Brazil, Bulgaria, Canada, China, France, Germany, British India, Italy, Japan, Mexico,
Russia, Spain, Sweden', Switzerland, United Kingdom, and United States.
SNot including Brazil.
'Including Mexico, Netherlands, and Sweden as in year 1909.


Total. Per cent
increase.

018,476,156 ..........
557,759.130 58.4

Netherlands, Norway,


The general average of British and American price increases for the decade ending in 1910 shows a rise in
average prices of 11.17 per cent; accordingly, the increase in the volume of the commerce of the 22 countries
included in the preceding table was presumably but 88.83 per cent of 58.4 per cent, or 51.9 per cent. This
rate of increase applies to the commerce of practically all important commercial countries and includes the trade
of the older sections of the world; where the rate of growth is relatively slow, as well as of the newer parts of the
world, where the increase in commerce is relatively rapid. For this reason the rate of increase ought to be less
than that of the available commerce of the Panama Canal, which will be used by the commerce of the Pacific coun-
tries, whose trade is growing at a relatively rapid rate.
The total foreign trade of the United States increased 47.1 per cent in value during the decade ending in
1910. To eliminate the effect of the rise in prices, this rate should be decreased 13 per cent, or to 40.7 per cent.
The foreign commerce of the United States during the decade ending June 30, 1911, increased 54.9 per cent in
value. After reducing this 13j per cent, the increase representing the presumable growth in volume of trade


PANAMA CANAL TRAFFIC AND TOLLS.


s IL--PERCENTAGES OF INCREASE IN PRICES DURING THE DECADES ENDING IN 1909 AND IN 1910.


'




AAA~A~r A ANNA AAhI~Iffl


...... NE"


PANAMA CANAL TRAFFIC AMD TOLLS.


becomes 47.4 per cent.


The following chart shows graphically the increase in the yvalu of the imiports


exports and total foreign commerce of the United States from 1900 to 1911:


and *
V

/ "
;!M


The only commerce which the United States will have via the Panama Canal with European countries will


be that between the Pacific coast of the United States and Europe.


For this reason, the increase in trade of


the United States with non-European countries is more indicative of the probable growth in the available canal


traffic than is the growth in the total foreign commerce of our country.


The value of the commerce of the


United States with non-European countries rose from $763,689,189 in 1900 to $1,359,747,319 in 1910, the growth


having been


per cent.


in the United States, leaves a net growth in the commerce of the United States with non-European countries of


for the available Panama Canal traffic for the decade preceding 1915.


A still closer indication of the probable


rate of increase in available canal traffic is the growth in the commerce between the Altantic-Gulf seaboard of


the United States and Pacific countries, American and Asiatic.
and by Pacific countries is shown in detail in Table IV.


The growth in this trade by imports and exports


674 per cent during the 10 years ending in 1910.


This percentage reduced by 13j per cent, to eliminate the effect of advance in prices


This is an appreciably higher rate of increase than is predicted


.. l"^:;


I









iE.ii:i
ii:.
E: E..


Tw IV.--TRADE OF ATLANTIC AND GULF PORTS OF UNITED STATES WITH WESTERN SOUTH AND CENTRAL
AMERICA, BRITISH COLUMBIA, AND PACIFIC COUNTRIES EAST OF SINGAPORE.1


Westem South Ameri


** !' iii ii. *i
r"
xx,,


Oenta (east of Singapore):


C'ldna,.. .-.-a
eased China..
Korea *.. ......
Rangkeong.....
Japan.........
Asiatic Russia.
Philippinek....


*. a ... .... -- -. a, a, .-..-..... -... -.--.......-.
a .....a -n aa --.-...a. a----------------a -.... a -...... -
... -- ..... - -... a -----------------... -..... a... a----------




a-- . . .. . . . .. . . .... *a - ,-,a--a-aa-aaa *a-a a...


Oceania:


Australia and Tasmania.......................................
New Zealand ....................................................
Otherft n Oceania ...........................................


Total.


Imports.


6,271,078
1,336,224
2,122,543


247.633


94,914
9,591,415


11,033,144


105
951,032
8,697,449
230

5,385,078


4,712,022

(1)
43,972


50, 486,861


Exports.


59,223

2,873,063
1,048,367
1,441,586
376,025
5,630
1,493,793


12,367,357
256,484
4,174
2,518,247
15,969,694
2,379,887
708,884


23,018,716

(4)
11,433
64,532,563


Total.


59,245

9,144,141
2,384,691
3,564,129
623,658
100,544
11,085,208


23,400,501
256,484
4,279
3,469,279
24,667,143
2,380,117
6,093,962


27,730,738

(4)

65,405
115,019,424


Imports.


189
16,841,788

2,049,120
7,128,595
93,700
'208,957
24,029,997


17,671,079
1,268,602
2,777
1,614,811
14,181,303
1,075,535
12,910,296


13,633,048
3,992,593
133,025
116,835,415


Exports.


590,481
7,552,423
1,956,602
3,039,976
808,278
490,118
3,683,174


13,600,922
532,102
316,407
1,614,199
9,483,811
545,320
8,869,930


24,004,591
4,912,593
82,001
82,082,928


Total.


590,670
24,394,211
4,005,722
10,168,571
901,978
699,075
27,713,171


31,272,001
1,800,704
319,184
3,229,010
23,665,114
1,620,855
21,780,226


37,637,639
8,905,186
215,026


198,918,343


Per cent in-
crease 1910
over 1900.


897.0
166.7
68.0
185.5
44.5
596.5
1650.0


33.6
603.1
7,497.0
17.4
84.2
a46,2

257.4


288.0


'Not including Alaska, western Mexico, western Central America except Salvador, and Pacific coast of United States.
sNot accounting for $27,456, which is not distributed by ports.
Decline.
Included under Australia.

The value of the commerce between the Atlantic-Gulf ports of the United States and the countries on both


sides of the Pacific rose 72.9 per cent during the 10 years ending in 1910.


To indicate the increase in volume of


trade, this percentage should be reduced 13& per cent, or to 63.1 per cent. This again is a higher rate of growth
than is credited to the available canal traffic prior to the opening of the canal. The details presented in Table
IV are especially instructive. The commerce between the eastern part of the United States and the west coast

of South America, as a whole, advanced 158.4 per cent in value during the decade; this rate, decreased by 13j per
cent, becomes 137 per cent. The commerce of our eastern seaboard with Hawaii increased 150 per cent in value;
the trade with the Philippines, 257.4 per cent, with Australia and New Zealand, 67.8 per cent; and with other
parts of Oceania, 288 per cent.
The growth in the value of the commerce between Europe and Pacific countries, other than British Co-
lumbia, during the decade 1900-1910 is shown by the following table:

TaBx. V.-INCREASE IN 'EUROPEAN TRADE WITH PACIFIC COUNTRIES EAST OF SINGAPORE, 1900-1910.


Year.


10-130...


Imports.


3508,309,000


Exports.


$297,118,000


Total.


805,427,000


Per cent
increase.


't**
*i^''
*IM:
::IE *"

*iS:.'^ :K
l^.







PANAMA CANAL TRAFFIC AND TOLLS.


:oRvYi......... -E a.<.....--... S.. -....----'a.-... .....- a-......... ...
Chle.. ... ...--. .. .. ... .. ...... --....-.. .......-..... -......-..
Reuador -a. .-.-.... a a. a- -.. a.a.. ....--..-........ -.... a..-.-...a --
....O *: :-I .- .-.... ---- ---.. -*.- - ............... - -

iEish lunbla.* .---*---------.....-. ..-.****------.-*-*----------...-. --


BHW i~t ..-.........-....,-...........................-. -
'Razra~l*l*.ri** 1


*.. .* W'


..........




- %U~""" N~NNHDII~fl~j~ fi!IUI~~HIIIII


PANAMA CANAL TRAFFIC AND TOLLA


In spite of the large value of the trade of Europe with Pacific countries in 1900, the percentage of inceas
during the decade ending in 1910 was 52.1 per cent. To offset the effect of rise in prices, this rate of increase his
been reduced 12.9 per cent, or to 45.4 per cent. It was thought that the mean between the increase in British
prices, 1899-1909, and the increase in American prices from 1900-1910-12.9 per cent-should be taken as he
factor to be applied in offsetting the effect of the rise in prices in the commodities composing the trade of
Europe with the two sides of the Pacific.
The traffic of the Suez Canal rose from 9,738,152 tons, net register, in 1900, to 16,581,898 net tons in
1910, the increase for the decade being 70.26 per cent. During the year 1911, the traffic of the Suez Camae
amounted to 18,324,794 net tons, the growth for the decade ending in 1911 having been 69.3 per cent. A st ng
fact regarding the Suez traffic is the continued high rate of growth in spite of the large total tonnage already
attained. The Suez Canal is used largely not only by the commerce of Europe but by the trade of the eastern
seaboard of the United States with the countries of southern and eastern Asia, with the East Indies, and with
Australasia. This traffic thus includes the shipping employed in a large share of the world's trade. The
traffic of the Suez Canal is diversified and stable, and its growth represents the normal increase of a large part
of the world's international trade. The increase in the net tonnage of the Suez Canal is graphically shown by
the following chart:


CHART B, NET


TONNAGE OF SUEZ CANAL


1900-191/.


Net Tons
/8,004000


/7,004000





is,ocooo -


14,000,000




/3,2.000,000 -







10,000,000


9,000q000


- -.~. ~ Af In fl"


-I


"''
"E


,:E"


.. '*'
'a'":










PANAMA CANAL TRAFFIC AND TOLLS.


TA sE I.--PERCENTAGES OF INCREASE IN THE VALUE OF COMMERCE, 1900-1910.


Grmmece of--


Twenty-two leading countries........
United States with foreign counties..


United States with non-European counties ........ ............
Atlantio-Gulf seaboard of the United States with Pacifi countries


s* --..-.. .....a....-............A*-- a .- A -... a a a a a...-.,_


Eun p with Pa fi counties .. ... .... ........ ..... ... ..............................................--......


SGzia ml .-.- . ..... ...... -.m. ..... ........ .* ,.... -....


Percentage of
increasein
value.


58.4
49.1
78.0
72.9
52.1
- ******.i.***(**m-


Percentage of
increase after
reduction to
offset rise in
prices.


In tonnage.

Most of the details presented in Table VI are represented graphically in the following chart:


It is believed that the facts presented in the foregoing discussion and summarized in Table VI and in Chart C
indicate that the increase of 58.96 per cent in available canal traffic during the decade ending in 1910 does not err
on the side of overstatement, and that a continuance of that rate of growth in the available canal tonnage may









PANAMA CANAL TRAFFIC AND TOLIS.


first half of a period of general business expansion.


Unless some entirely improbable event occurs,


prosperity:
pl^OSP Itfl^ : i1
lr *r .'.*::: E ii"^^


may not be expected to give way to general business depression for some years to come.
The facts presented in this chapter indicate an available Panama Canal traffic in 1914-15 of 10,500,000 tons,
net register. It is however, not probable that this entire tonnage will immediately abandon present routes
upon the opening of the canal; a period of possibly two years may be required by merchants and carriers to
arrange for doing business by the canal route; the transfer of traffic to the canal route, however, will be accom
polished in a comparatively short time. Steamship companies are already laying their plans; terminal facilities
are being sought; ships are being constructed; and arrangements with rail carriers are being made.


The Suez Canal traffic increased slowly during the first five years, because the traffic between Europe ea
the East was handled almost entirely in sailing vessels at the time of the opening of the Suez Canal. Steamers
had to be built to use the canal. The total tonnage of steamers in 1869 was relatively small; to-day (te
situation is different, most of the world's seagoing fleet consisting of steamers. The Panama Canal will not have
to wait for ships to be built to handle its available traffic.
The increase in the available Panama Canal traffic up to 1915 will be at the rate of about 60 per cent per
decade. How rapidly the traffic of the canal will increase after the waterway has been put in operation can,
of course, merely be conjectured. The assumption of an increase of 60 per cent during the first decade, from
1915 to 1925, would unquestionably be conservative, because such an estimate would assume merely the con-
tinuance of the rate that has prevailed during the 15 years preceding the opening of the canal. The Panama
Canal will unquestionably stimulate and accelerate the growth of the commerce it serves, particularly the trade
between the two seaboards of the United States and between the eastern part of the United States and South
America. The influence of the canal upon the commerce between Europe and the west coast of the United
States, and between Europe and western South America, can hardly fail to be important.
It is probable that the traffic of the canal will advance more than 60 per cent between 1915 and 1925. If,
however, it be assumed that the growth will be but 60 per cent during this decade, the traffic of the Panama
Canal will reach 17,000,000 tons, net register, in 1925. This figure may seem large but it will be small in com-
parison with the traffic which the Suez Canal will have secured by 1925. Indeed, the traffic of the Suez Canal
in 1915 will be considerably in excess of 20,000,000 tons, net register, and unless the traffic of that waterway
should increase at a much slower pace that it is now advancing, the tonnage passing the Suez Canal in 1925
will be nearly double 17,000,000 net tons.


,,,,, ,, ,, 9 ,,, ,,,,,


:::














































CHAPTER IV.


THE RELATION OF THE PANAMA CANAL TO THE TRAFFIC


AND RATES OF


AMERICAN RAILROADS.


I:
I:.
x xx




xx"






HMH
xxx
xx x







x*y E










9 \x









f' XX X XXX X XXX









/ .."^PII-x










"jp x x xxxxxx
"' :i 'x





Exxx m


xA x

*x x




xx x *x
T .:*x






V *x







\x























































g xi
# x











































x. xx


































1-

























'4 M














CHAPTER


THE RxELATION OF THE PANAMA


CANAL


TO THE TRAFFIC AND RATES OF


AMERICAN RAILROADS.


INTRODUCTION.


Since the opening of the first railway to the Pacific, in 1869, shippers have had the choice of rail an
routes for the transportation of their freight from coast to coast, and, in spite of artificial restraints u
competition of the water routes with the transcontinental railroads, the rates by rail between the two ser
have been affected by those charged by the careers by water. The Panama Canal will shorten and i
the intercoastal water route and will greatly increase the influence which the coastwise lines will be able
upon the railroad services and rates. The volume of traffic moving coastwise will be greatly enlarged
canal. Some goods now handled all-rail will move by water or by rail and water lines, and there wil
sarily follow a modification of rail rates and a readjustment of the relation of the charges of rail and watt
What the actual freight rates between the Atlantic and Pacific seaboards will be, by rail and water
after the opening of the Panama Canal, and what shares of the total traffic will mowe coastwise and
can not be predicted in advance; but inasmuch as the division of intercoastal traffic between the water
carriers and the rates charged by the competing ocean and rail routes may be affected by the tolls char
the use of the Panama Canal, it is desirable that before fixing the tolls as complete information as it is pra


d water
pon the
boards
improve
to exert
by the
l neces-
er lines.
er lines,
by rail,
and rail
urged for
cticable


to secure should be obtained concerning the existing traffic and rates of both the water and the rail lines con-


necting our two seaboards. Accordingly, it is the purpose
(1) To state the volume and explain the nature of
two seaboards; (2) to present the available information
continental railroad traffic; (3) to compare present coast-t
the rates now prevailing at inland points in the eastern
continental traffic that is carried by combined rail and oc


se of
the
con
;o-co
and
ean


to retain and develop the direct all-rail movement of traffic
United States; (5) to indicate in general terms how the rail
enable the Middle West to continue to compete successfully wi


this chapter:
traffic now carried by water routes between the
cerning the tonnage and character of the trans-
ast rates by rail and water carriers; (4) to explain
western sections of the United States on trans-
routes, and to state what the railroads have done
between the eastern and western portions of the
roads may be expected to adjust rates so as to
ith the Eastern States in the markets and for the


trade of the Pacific Coast and Rocky Mountain States; and (6) to summarize the probable effects of the Panama
Canal upon transcontinental traffic and rates.
It is well known that only partial information regarding the traffic by rail between the eastern and western
sections of the United States is obtainable, but enough facts are known as to the total transcontinental rail
tonnage and as to the seaboard and inland origin and destination of that tonnage to give some indication of
the probable effects of the Panama Canal upon the traffic and upon the rate policies of the eastern, southern,
and transcontinental railroads. It will be possible to present in sufficient detail the traffic and rates of the
I coast-to-coast carriers by water and to compare the present intercoastal rates by water and rail lines. It will
Sbe understood that the conclusions as to the effects which the Panama Canal will have upon the transcontinental
traffic and rates of the railroads must be only tentative.

I. ROUTES AND TRAFFIC BY WATER BETWEEN THE ATLANTIC AND PACIFIC SEABOARDS OF THE UNITED STATES.

Shipments between the two seaboards of the United States may move by three water routes that compete
with the raiijines connecting the two coasts, (1) the all-water route around South America via Cape Horn for


;;; """ i;; iB

~irr
j~: E: EiEE










50 PANAMA CANAL TRAFFIC AND TOLLS.

Traffic carried by rail lines between the Atlantic and Pacific seaboards may move oastwise for a shojr
distance on each seaboard-as from New York to Norfolk or from Portland, Oreg., to San Francisco at the be i-il
ning or end of the railroad haul across the continent. The only railroad controlling a through route between
the Atlantic and Pacific seaboards is the Southern Pacific, which operates the Morgan Line of steamers between
New York and New Orleans and Galveston. The steamers of the Morgan Line extend the Southern Pacifi
route from the Gulf termini of the railroad to New York, and thus enable the Southern Pacific to compete both:
with the other transcontinental railroads and with the intercoastal water routes around South America tad
across the Isthmuses of Panama and Tehuantepec. This combined rail and water line of the Southern Pad

is called the "Sunset-Gulf Route."
1. The oldest route between the two seaboards of the United States is the one taken by sailing vesea
around Cape Horn. Prior to 1849, however, only an occasional vessel, which was in most instances a whai
undertook the voyage between the Atlantic and Pacific, but with the discovery of gold at the close of 1848, an
for a few years thereafter, there was a very large use of this route. In 1849, 775 vessels cleared from the Atlaui
seaboard for San Francisco and all but 12 of them were sailing vessels. The opening of the Panama Raif
early in 1855 caused most of the traffic between the seaboards to abandon the long route around South Amerd
but a considerable number of sailing vessels were annually dispatched between the two seaboards by way


Cape Horn, and a small amount of steam tonnage made
The superiority of steamers over sailing vessels for.
route as that between the two seaboards of the United
the 1890's and caused the company which was then ope
two seaboards by way of Cape Horn to sell its sailing vess
line of steamers run by way of the Straits of Magellan.
the route via the Isthmus of Tehuantepec, and since tha
our two seaboards around South America has consisted
such bulky cargoes as can be economically shipped by t
tonnage of freight handled between our two seaboards v
of other routes during the six years from 1906 to 1911,
decline in the tonnage via Cape Horn and Magellan after


use of the Magellan route.
handling most classes of freight, even for such a long
States around South America, became evident during
rating the principal line of sailing vessels between onu
0els and to inaugurate, in 1899, the American-Hawaiia
Early in 1907 the American-Hawaiian line shifted to
t date" practically all of the shipping moving between
of chartered sailing vessels and steamers that handle
;hat circuitous route. Table I shows the approximate
ia Cape Horn and the Straits of Magellan and by way


inclusive.


It will be seen that there was a sudden


ar the withdrawal of the American-Hawaiian line from


the Magellan route, and that the volume of tonnage around South America has fluctuated largely during recent
years.
TABLE I.-VOLUME OF INTERCOASTAL WATER TRAFFIC, 1906-1911.
[Tons of freight.]


Years.


1906.........


1908.........
1909 .........
1910. ........
1911.........


Total coastwise traffic of
Panama Railroad.'


Atlantic
to
Pacific.

25,914
26,944
23,258
38,095
46,394
96,420


Pacific
to
Atlantic.

24,937
15,285
15,162
8,728
33,482
115,508


Total.


50,851.
42,229
38,420
46,823
79,876
211,928


Coastwise traffic of Pana-
ma Railroad Steam-.
ship Line.


New
York
to
Colon.

25,866
26,859
23,131
37,910
46,394
66,922


Colon
to New
York.

24,937
15,285
15,132
8,700
33,482
105,577


Total.


50,803
42,144
38,263
46,610
79,876
172,499


Coastwise traffic of Pacific
Mail2


Atlantic
to
Pacific.

25,866
26,859
23,131
37,910
46,394
29,080


Pacific
to
Atlantic.

24,937
15,285
15,132
8,700
33,482
47,892


Total,


50,803
42,144
38,263
46,610
79,876
76,972


California-Atlantic Steamship
Line (Pacific servic service).


Atlantic
to
Pacific.









67,332


Pacific
to
Atlantic.


*..------------



67,213 |


Total.


California-Atlantic Steamship Line
(Atlantic service)!.2


Phila-
deColhi
Colon.


Colon
to
Phila-
delphia.


S* ..1


1,002 4,041


Toa


.......


S- -:
39O,1&


2 Statement of E. A. Drake, vice president Panama Railroad Co.


' Annual Reports of Panama Railroad Co.


* -.S. ..1


134, 545 f 28,


..........I........









:,-"


CANAL


TRAFFIC


AND


TOILS.


TaBm I.-VOLUME OF INTERCOASTAL WATER TRAFFIC, 1906-1911-Continued.


[Tons of freight.]


Years.


1i06:.... *- -.
11P7.- ...1


109: .... -


1934


El?! *:


|||^:::

lllllF" /
II:.


American-Hawaiian Steamship Line.


New York
to Pacific
portf.


114, 00
11,900oo
117,200
229,200
247100
295,800


Pacific
ow Yorks.


32,0 0
14,000
27,000
83,200
51,600
'oa,aoe


Hawaian
sugar.


91,700
198,300
242,700
248,100
244,300
290,600


Total
(exsudig
Hawaiian
sugar).


146,900
145,900
144,120
312,400
306,700
458.300


Tonnage via Cape Horn and Straits of Magellan.


Vessel tonnage (entrances plus
clearances).


Atlantic
to Pacific.


169,787
191,432
159,725
52,873
117,147
117,007


Pacific to
Atlantic.


140,243
82,343
56,182
32,821
55,508
40,601


Total.


310,030
273,775
215,907
85,694
172,655
157,608


Approxi-
mate
freight
carried.3


271,276
239,553
188,918
74,982
151,073
137.907


Total line
traffic
suawar)an
sugar).4


197,703
188,044
182,463
359,010
386,576
669,817


Total

traffic.


271,324
239,638
89,075
75,195
151,073
138,318


Total
water
traffic
(excluding
Hawaiian
sugar).'


469,027
427,682
371,538
434,205
537,649
808,135


Total
water
strafic

sugar).


560,727
625,982
614,238
682,305
781,949
1,104,735


- St ate nt of American-Hawaiian Steamship Co.
S; 0. Commerce and Navigation Reports, 1906-1911.
As sming 15 tons of freight for 1 net vessel ton, and dividing by 2, as in the vessel tonnage each ship is counted twice--once as an entrance and once as a clearance.
S'lflme of Panama Railroad Steamship Line, Pacific Mall, California-Atlatic, and American-Hawaiian Line.
Sotal water tral less total line traffic.


'Castrise Panama Railroad traffic plus American-Hawaiian traffic plus traffic via Horn and Magellan.

2. The Panama route between our two seaboards was opened for traffic at the close of 1848, at the time of


the rush to the California gold fields. With the completion of the railroad from Colon to Panama, early in 1855,
most of the traffic between our two seaboards moved by way of Panama; and this continued to be the principal
highway for transcontinental traffic until 1869, when the connection of the Missouri River with the Pacific coast
by the Union and Central Pacific Railroads established the first rail line across the United States. The traffic
by way of Panama rapidljr fell off after 1869; and, though varying from year to year, remained comparatively
small until 1911, when there was a sudden increase in the volume of traffic by water between our two seaboards.


Several causes account for the relative unimportance of the Panama route since 1869.


The transconti-


mental railroads, until recently, have maintained a relentless competitive warfare against the Panama route.
The through rail rates between the Atlantic and Pacific seaboards are lower than the rates for shorter hauls to
and from the intermediate points in the Rocky Mountain territory; and, until the Government regulation of
railroads became effective, the railroad companies quoted shippers such rates as were necessary to keep traffic
from taking the Panama route. Moreover, the transcontinental railroads were able to restrict the use of the
Panama route t ugh their close relations with the Pacific Mail Steamship Co., which has, for most of the time,
been the only regular line between the west-coast ports of the United States and Panama. For a period of 20
years, ending in 1893, the railroads, through the Transcontinental Association, paid the Pacific Mail Steamship
Co. a fixed monthly sum, or rental, for the freight space available in its steamers, and thus completely con-


trolled the Pacific Mail as a competitor.
ity of the stock of the Pacific Mail Steam


From 1900 to the present, the Southern Pacific Co. has owned a major-
ship Co. The history of the relations of the Pacific Mail to the trans-


continental railroads and to the Panama Railroad need not be presented in this account of the traffic and rates


by the various routes connecting the two seaboards of the United States.


I It is sufficient to state that the


transcontinental railroads by active competition and by artificial- restraint have, until recently, kept the traffic
via the Panama route comparatively small.
The development of traffic via Panama has been hampered, not only by the competition and restraint of


the transcontinental railroads,


but also by two other causes.


While the French company was engaged in


construction work on the Isthmus from 1882 to 1889, the use of the Panama Railroad by commercial freight
was restricted by employment of the railroad for the transportation of materials and supplies used in construc-


tion work.


Likewise, since 1904, the construction of the canal has limited the volume of commercial freight


' For the i of the relations of the Panama Rairoad to the Pacific Mail Steamship Co. and for an account of the connection of the Pacific Mail with the trannn-


11 ....:: -


..i 1 1111111111 I...._... """""" - - - --- ..------------- - '- - t ^ ^----* - - -- ***********- ** *


*


PANAMA


j;j


.








52 PANAMA CANAL TRAFFIC AND TOILS.

that could be handled across the Isthmus. The other cause that has checked the growth of traffic via Panama
has been the competition of the Tehuantpec route, which, since the beginning of 1907, has afforded ash
and better transportation route than the one by way of Panama for the traffic between the two seaboard
of the United States. The volume of traffic handled via Panama between our two seaboards during recent
years is shown in Table I. For several years preceding 1910 the tonnage was small and tended to decline,
3. The Tehuantepec route was opened for traffic early in 1907, when the American-Hawaiian Steamship U e
took its steamers off the route via the Straits of Magellan and established regular line services on the Atlanti
between New York and Puerto Mexico and on the Pacific between Salina Cruz and Hawaii and the west-cuat
ports of the United States. In 1906 it made an agreement with the Tehuantepec National Railway, whi&
owned by the Mexican Government, stipulating that the railway company should receive one-third of the thk
rate. This agreement also included a guaranty on the part of the Tehuantepec National Railway that te
net earnings of the steamship company, per ship ton, should not be less than the earnings had been in 19O
when the steamship company was operating by way of the Straits of Magellan. This guaranty, however,
not require the Tehuantepec National Railway to reduce its share of the gross receipts of the steamship company
to less than 25 per cent. The American-Hawaiian line has been very successful. The fleet of the America-
Hawaiian Steamship Co. increased from 3 steamers in 1899 to 9 steamers in 1904, and to 17 in 1911.
Five new steamers were ordered in 1911. The rapid growth in the traffic of the company has been made possible
by the sugar tonnage from Hawaii to the eastern ports of theTJnited States. The freight shipments westbound
between our two seaboards are larger than those eastbound, but the exports of Hawaiian sugar have enable
the American-Hawaiian Steamship Co. to run its steamers loaded in both directions. Indeed, the exports 4
sugar from Hawaii have been much larger than the American-Hawaiian Co. could handle. The growth in the
traffic handled by the American-Hawaiian Steamship Co. between our two seaboards and the tonnage of Hawaiian
sugar transported by the company from 1906 to 1911, inclusive, are stated in Table I.


The through route between
to Galveston and New Orleans ai
Morgan Line) was established in
its competitors by rail and by w
transcontinental railroads, other
the Pacific coast and were prima


Pacific coast.


The


the rates by the tra
the rates by the thr
Chicago, St. Louis,
worked out by 1896


rates by the
nscontinental
oughh all-rail
and Missouri


, and


has since


the Sunset-Gulf route and by the i
the all-rail lines as common competi
of Panama and Tehuantepec. The
since 1874, and the ownership of tl
the transcontinental railroads, as h
proportions, until a few years ago,


the two seaboards via the Southern
nd from those cities to New York by
1883. The Sunset-Gulf route immet
ater lines, and secured a large share
than the Southern Pacific, ran from


rily interested in the
Sunset-Gulf route fre
1 lines from St. Louis
lines from the Atlan


River crossings to t


prevailed on west
all-rail lines betwe
tors against the w
control of the Pac:
he Pacific Mail by
tas been explained


Pacific Railroad from the Pacific coast
the Southern Pacific Co.'s steamers (the
liately began an active warfare against
of the traffic from coast to coast. The
the Mississippi and Missouri Rivers to


development of traffic between the Middle West and the
om New York to San Francisco were made the same as
and Missouri River crossings to the Pacific. Gradually
tic to the Pacific were made the same as the rates from
he Pacific seaboard. This system of blanket rates was
bound traffic. The establishment of the same rates by
en the two seaboards allied the Sunset-Gulf route with
ater routes around South America and via the Isthmuses
ific Mail Steamship Co. by the transcontinental railroads
the Southern Pacific from 1890 to the present, enabled
I, to keep the traffic by the water routes within small


when the American-Hawaiian Steamship Co.,


later the California-


Atlantic, developed a relatively large tonnage coastwise via the Tehuantepec and Panama routes. This devel-
opment of the coastwise business during the last few years has not been seriously opposed by the railroads,
doubtless because of the rapid development of the rail tonnage consequent upon the industrial progress of the
Intermountain and Pacific Coast States.
The volume of traffic handled between the Atlantic and Pacific ports of the United States by the several
water routes, not including the Sunset-Gulf route, each year from 1906 to 1911, inclusive, is shown in detail
in Table I. The total tons of freight, not including Hawaiian sugar, rose from less than 500,000 tons in 1906


'i :;i


i







PANAMA


CANAL


TRAFFIC


AND TOLLS.


regular lines more than trebled during the six-year period, while that carried by individual vessels decreased
more than 50 per cent. In 1911, 82.8 per cent of the entire traffic, other than Hawaiian sugar, was carried by
the regular lines, whereas in 1906 only 42.1 per cent was shipped by the established steamship lines.
The volume and variety of the traffic between the two seaboards of the United States have so expanded
as to render the services of established steamship lines having regular and frequent sailings more economical
than the services of individual vessels carrying full cargoes of single commodities. The traffic manager of
the American-Hl waiiafi line stated to the Interstate Commerce Commission, on January 16, 1907, that-


We carry practically everything. In the course of a year I think we have at least 90
the transcontinental tariffs and a great many articles not on any tariff that are continually
The traffic carried by way of the Panama route also includes a large
bound freight tariff of the Panama Railroad Steamship Line requires
articles upon which individual rates are quoted. The east-bound tariff
Co. is-a typewritten document of 20 pages.
The freight carried between our two seaboards by way of Panama an


per cent of the articles that may be named in
offered and carried.
variety of commodities. The west-
25 pages to enumerate the several
of the California-Atlantic Steamship

d Tehuantepec originates and termi-


nates not only at the Atlantic and Pacific ports, but also at interior points. Manifests of the shipments by the
American-Hawaiian line enumerate commodities shipped from eastern New York, eastern Pennsylvania,
Massachusetts, New Jersey, Vermont, Connecticut, Rhode Island, Maine; also commodities from Syracuse
and Buffalo, N. Y., from numerous cities in Ohio, from certain cities in Michigan, and from Chicago, Milwaukee,
and'St. Louis. These same manifests show that this freight is destined not only to Pacific coast ports, but to
inland points, such as Sacramento, Stockton, The Dalles, Oreg., Spokane and Everett, Wash., and Reno, Nev.
Most of the bulk cargoes handled in vessels owned or chartered by shippers now move by the disadvan-
tageous routes around Cape Horn or through the Straits of Magellan. The opening of the Panama Canal will
make it possible for the individual ship to engage in intercoastal traffic under much better conditions. It is
not probable, however, that the percentage of the total traffic handled by individual vessels will increase in
the future. Itris more probable that the percentage of the entire business handled by lines will increase. Most


of the traffic from our Pacific to Atlantic ports carried in individ
will necessarily consist of cargoes of grain, lumber, and sugar.
expected to become heavier. The shipments of grain from the v
to Europe through the canal will be large, but it is not probable
the United States will find very much market at the Atlantic seal
in all probability be supplied from the grain fields of the Middle


will be required in the Mississippi
in vessel cargoes as charter traffic
others of a like character that min
ably be carried eastbound mainly
normally heavier than the tonnage


ual vessel
The sugai
vest coast
that the
board. T


s owned or chartered by the
traffic is already large and
, especially from Puget Sounc
grain from the northwestern
hat section of the United Sta


West. Barley from the


Valley and Atlantic coast sections of the United States,
. However, such commodities as wheat, barley, wool,
ght advantageously be shipped as full cargoes in charter
by line vessels, because of the fact that the tonnage of


3 eastbound.


shipper
may be
1 ports,
part of
tes will


Pacific Coast States
and may be shipped
canned salmon, and
ed vessels will prob-
traffic westbound is


Line vessels will seek these bulk commodities as supplemental


cargoes eastbound and at low rates. As was stated above, the American-Hawaiian line has developed a profit-
able business by securing a heavy eastbound tonnage of Hawaiian sugar. In 1911 the Hawaiian line trans-
ported 295,800 tons westbound, but only 162,500 tons, other than sugar, eastbound.
The lumber shipments from the Pacific coast through the canal will comprise a large tonnage, but the desti-
nation of most of the traffic will be Europe and not the eastern part of the United States, which will continue
to be supplied mainly from the forests in the Southern States. The southern pine and hardwood forests consti-
tute the largest lumber-producing district in the United States at the present time. Shipments are made
economically and expeditiously both by all-rail routes to northern markets and also by rail to southern seaports
and thence by coastwise vessels.
Upon the opening of the Panama Canal it is probable that manufacturers and other large shippers will
employ their own or chartered vessels for shipments of some heavy commodities to Pacific markets. Undoubt-
edly therl be a aood deal of coal shivDed westbound in chartered vessels. Fertilizers. heavy iron and steel.








54 PANAMA CANAL TRAFFIC AND TOLIS.

ering, (1) what the policy of the United States should be concerning the prohibition of the use of the canal b
vessels controlled by railroads, and (2) concerning the remission or omission of tolls upon vessels engaged in
coastwise business.
1. The policy of denying the use of the canal to vessels owned or controlled by, or affiliated with, railroad
companies is advocated by those who favor the policy mainly for two reasons, (a) that the competition between
the railroad-controlled and the independent steamship lines will be disastrous to the independent lines, and (0
that the Government regulation of the rates and services of ocean carriers is impracticable and undesirable
If coastwise traffic through the canal were to be handled mainly by individual vessels owned or chartered by
shippers, Government regulation would, indeed, be impracticable; but the service of steamship lines opea
over established routes is not essentially different from the transportation service of the railroads. Mortei
when several steamship lines operate over the same route or over competing routes they have fixed sched gn
of rates established by agreement and their rate policy differs in no marked degree from that of compt
railroads.
The rates charged by steamship lines differ fundamentally from charter rates, which are highly competit>
and fluctuate with the supply of and demand for chartered tonnage. Charter rates fluctuate according
business conditions and could not be and ought not to be subject to Government regulation. The rates of steam
ship lines, however, are not only made in conferences of the competing lines, but also in many cases are fed
with reference to the rates charged by the railroads with which the steamship lines must compete for trafc
It is thus at least doubtful whether it is good public policy not to regulate the rates and services of coastwi
steamship lines. Whether such regulation is wise or unwise, it is at least not impracticable.
2. The question of exempting coastwise shipping from- the payment of Panama Canal tolls should be
decided with reference to the parties that would be benefited by that policy. This subject is discussed in Chapter


XII of this report in considering


"The principles that should control in fixing


tolls," and need only 1


be referred


to in this connection. If the tolls charged coastwise ships using the canal are added to the rate of freight paid
by shippers, the remission of tolls will benefit the shippers and possibly, to some extent, the general public. On
the other hand, if the freight rates are not any higher because of the tolls, the exemption of ships from the
payment of tolls will not affect the freight rates, and the exemption of the payment of tolls will benefit the steam-
ship company and not the shippers. Charter rates, as has just been stated, are highly competitive and the
rates which a shipper must pay to secure the use of a vessel for a trip through the canal will undoubtedly be
increased by the amount of tolls paid. Shippers using vessels which they own or charter will receive the benefit
of the exemption of canal tolls. On the other hand, the rates charged by steamship lines, being regulated by
agreements among competing companies and being fixed with reference to what the traffic will bear, will presum-
ably be as high as traffic conditions warrant regardless of canal tolls. If the tolls are charged, the operating
expenses of the steamship companies will be increased by the amount of the tolls and their net profits will be
lessened by the same amount. In other words, free tolls will be a gratuity or a subsidy to the coastwise steam-
ship lines. The reasons for believing that the rates of the coastwise steamship lines, which will handle from
four-fifths to nine-tenths of the water traffic between the two seaboards of the United States, will not be affected
by the policy of the United States Government as regards free tolls are presented in Chapter XII, above referred to.


II. VOLUME AND NATURE OF TRANSCONTINENTAL RAILROAD TRAFFIC.


The tonnage of transcontinental railroad traffic can not be accurately stated, because the railways in report-
ing their traffic do not distinguish between transcontinental and local freight. Estimates made by the traffic
officials of the transcontinental lines in 1909 placed the total volume of westbound transcontinental tonnage
moving by rail and water at approximately 3,000,000 tons.1 The westbound tonnage of the water lines that
year (see Table I) was 313,558 tons. In round numbers, therefore, 2,686,000 tons, or 89.5 per cent moved west-
ward by rail and 10.5 per cent by water.
The total through and local traffic of the six leading transcontinental railroads 2 increased 11.2 per cent from









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


*I::.".i













KKKK
KKKKj
i:l|
1.


"::


tuffs, and merchandise shipped to the Pacific coast by rail being of great variety. Table I1
contains a list of the more important commodities, with the freight rate for each article.
Several tabulations have been made to indicate roughly the origin of the westbound railroad
E shows the origin of the shipments to the Pacific coast over one of the transcontinental lines
rof four months.1 Only 22 per cent of the through traffic of this line originated in "Atlantic coar
oit territory;" 35 per cent came from points in the east, including Pittsburgh, Buffalo, and c
42 per cent originated west of Pittsburgh-Buffalo common points; and 54 per cent was shipped fr
territory and points west of Chicago.


, pages 63-65,

traffic. Table
during a period
st and common
ommon points;
om the Chicago


TABLE II.--ORIGIN OF WESTBOUND RAIL SHIPMENTS TO PACIFIC COAST TERMINALS.


New York-Boston and common points..................................................


P~ittsburgh-Biuffal and common points ................. ............. ........ ............................ ........ .................... .
Cineiat-Detroit mnd common points .......................................................................................................
ago and common points .............................................................................................................
Miss ppRl iver and common points.............................................. --............................................. ....
Missouri River and common points................................................--.................................................
tSohtheast apoits...................................................................................................................


ololradopoints....- -..........----


Less than
carload.


Per cent.
39
8
12
16
9
10
2
4


Carload.

Per cent.
19
14
8
16
11
25
3
4

100


Total.

Per cent.
22
13
8
16
11

3
4

100


This agrees substantially with the statement made by Mr. G. W. Luce, assistant to the vice president of
.te Southern Pacific, before the Interstate Commerce Commission. He stated that not over 20 per cent of the
eastern traffic destined to the Pacific terminals originated east of Buffalo and Pittsburgh. Of this 20 per cent


he estimated that over half moved
Various compilations were filed
"at its request, during the hearings
transcontinental traffic received at
westbound shipments received at
originating at or near the Atlantic
terminals. Indeed, only 12.09 per
per cent in the Pittsburgh-Buffalo
and seven-tenths at Chicago and p
supplies mainly from the Mississipp


by water.
by the transcontinental railroads with the Interstate Commerce Commission
of the transcontinental rate cases, for the purpose of showing the origin of
Spokane, Wash., and Reno, Nev. Table III contains an estimate of the
Spokane, via the Northern Pacific, in 1906. The percentage of freight
seaboard was smaller than was true of the shipments to the Pacific Coast
cent originated in "New York-Boston and common points," and but 5.82
district. Four-fifths of the traffic originated west of Pittsburgh and Buffalo,
points west of Chicago. The Intermountain States of the West receive their
i Valley, and not from the Atlantic seaboard States.


Attnlnr InS OnA Tennowr' Anril onrA Tnlrr l1n1


S..8 per ent of the total volume in 1
the total rail-and-water traffic carried
that during 1911 there was a slight
water carriers, the tonnage of the six
of the railroads in the United States,
per cent in excess of what it was in
of 11.2 per cent in the total" tonnage
years in the westbound tonnage of the
The westbound rail tonnage co0


911 moved by rail and 14.2 per cent by water. The higher percentage of
by the water lines inr1911, as compared with 1909, is explained by the fact
decline in rail tonnage and a large gain in the traffic of the coast-to-coast
.leading transcontinental railroads decreasing 3.9 per cent and that of all
3.7 per cent. The volume of westbound water traffic, however, was 24.9
1910. During the two-year period, 1909-1911, there was a net increase
of the six leading transcontinental railroads, but the gain during those
coast-to-coast water liAes was 57.7 per cent.
prises a wide range of commodities, the manufactures, prepared food,


.^.:




*1 """;I ~ ; II~I


PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE III.-ESTIMATED TONNAGE OF INTERSTATE WESTBOUND TRANSCONTINENTAL FREIGHT RECEIVED AT-
SPOKANE VIA THE NORTHERN PACIFIC RAILWAY, 1906.


From-


New York-Boston and com on points.................... ...................................................
Pittsburgh-Buffalo and common points............................. -- ...- .. -......--.....
Cincinnati-Detroit and common points...................................-*..................I.............
Chicago and common points ........... .................. .-....................
Mississippi River points ......... ............................................................................
Missouri River points............... ............................................................
Colorado points..............-....................................................... ...............
Southeastern points..........................................................................................


Carload
(pounds).


12,252,504
8,001,972
10,589,274
24,717,180
10,867,710
34,230,210
28,880,268
3,607,368
133,146,486


Less than
carload
(pounds).


5,736,954
658,788
1,886,370
2, 776, 542
1,881,684
1,903,.(44


325,734
437,820


15,607,236


Total.


17,989,458
8,60 ,760
12,475,644
27,493,722
12,749,394
36,133,554
29,206,002
4,045,188
148,753,722


Percent.


12.0


Table IV


contains a statement


, made by the Great Northern Railway, of the origin of the westbound


freight delivered at Spokane,


Wash., during 1906.


TABLE IV.-ESTIMATED TONNAGE OF INTERSTATE WESTBOUND TRANSCONTINENTAL FREIGHT RECEIVED AT
SPOKANE VIA THE GREAT NORTHERN RAILWAY, 1906.


New York-Boston and common points.
Pittsburgh-Buffalo and common points
Cincinnati-Detroit and common points.


Chicago and common points...............................................................................-----
Mississippi River points.............................................. .......................
issouri River points ..............--.........................................................................
Southeastern points ..................................-..................................... -.--............


Carload.
(pounds).


6,005,112
17,307,306
5,184,192
13,797,918
6,259,806
7,748,922
145,200
56,448,456


Less than car-
load
(pounds).


3,208,248
694,038
596,886
1,406,778
260,130
485,736
-. ... .. .. ..


6,651,816


Total.


9,213,360
18,001,344
5,781,078
15,204,696
6,519,936
8,234,658
145,200
63,100,272


Per cent.


14:61.
an Wfh


100,~(


Table V contains a statement of the origin of the westbound tonnage carried to Reno, Nev.,
gateway, in 1908. The figures were compiled from the waybills of the Southern Pacific by the
road Commission. Groups B and C comprise the territory east of Chicago. Only 24.48 per cen


*


via the Ogden
Nevada Rail-
it of the traffic


reaching Reno westbound originates east of Chicago.

TABLE V.-WESTBOUND TRANSCONTINENTAL FREIGHT RECEIVED AT RENO, NEV:, VIA OGDEN GATEWAY (1908),
IN TONS.


CarloadLess than Total. Per cent.
carload.


Originating in group-
B..-------- ---,-----------,-------->,-- ----------*------------*--------------------'--------------- --'-- -
C....-----,---.., .------------------------------------------- -------------------------
............. ................................. ..........................................
ii-,-- ---,---------------------^---- --------------"----------------------------------- -------- -----<-
Ii' . - .


I..o


I U I L '.?. I


2.08
22.40
22.40
17.64
16.30


::j
"" liii"""







ii

















:::"!


frt


TRAFFIC


AND


TOLLS.


Commissioner Lane 1 of the Interstate Commerce Commission, in discussing the origin of the traffic received
)m the east at Reno, stated:
Whatever the reason, the fact stands forth throughout this record that the source of supply upon which the far western communities


largly draw their manufactures has within half a century moved westward from the Atlantic seaboard, so that, as was found by the Rail-
mad ommission of Nevada from an analysis of the billing of actual shipments into Reno, 75 per cent of their traffic coming from the east
originated no farther east than the longitude of Chicago. There are cotton mills as far west as Kansas City; mining, milling, and farming
machinery is produced more largely in andhabout Chicago than in any other section of the country; boots and shoes, hats and clothes, cook-
ing utensils, and the multitudinous articles of domestic use may be secured in large part without coming east of the Alleghenies; in fact
the center of those industries which supply the far West apparently is not far removed from the center of population of the country.
This is a pregnant fact. It was announced by the Santa Fe officials, when they opened their through line from Chicago to Los Angeles,
that they thought it the part of wisdom to make their rates lower, or as low, from Chicago than from New York, so that the industries of
the Middle West might develop. They would make their line independent of their eastern connections in so far as that was possible, and
instead of bidding against the shippers of the seaboard for traffic destined to the Pacific coast they would develop industries close to their
own eastern terminus which would supply the western demand, and thereby develop a traffic for the lines west of Chicago which need not
be divided with the carriers east of that city--an exclusive traffic, one which could be carried at rates more compensatory than any that
could be had out of the division of a through coast-to-coast rate.


The share of the traffic received at inteior points,


such as Spokane and Reno, originating east of Chicago


is now perhaps


slightly larger than in 1906 to


when the railroads


began making


blanket


rates


these points on certain commodities.


However, the interior towns receive a smaller share of their total receipts


from the east than do the Pacific coast terminals, because lower rates are generally maintained to the interior
intermountain towns from the Central West than from the eastern part of the United States.
In considering the possible effect of the Panama Canal upon the traffic of the transcontinental railroads it


is important to know the destination of the westbound rail traffic.


The following statement was made by the


Southern Pacific to the Interstate Commerce Commission to show the destinations of the freight moving west-
ward through the Ogden gateway during the three years 1906-7 to 1908-9:


TALE VI.-TOTAL TRAFFIC MOVING WESTWARD THROUGH THE OGDEN


GATEWAY


(IN TONS).


San1raieisco....o


Oakland....
San Jos6....
Staokton....
Sacramento.
Marysville..
x$ Angeles.


*---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------------------------------,. ... ... .... ... ...
------------------------------------------------........-----.. .. . . ..-----------------------...


* .......................................................................................................................


All other points ...-..... .. .... .................... ........... ...........................................................
Total ........ .. ............. .................................... ...............................................................................


Alltemnais.--......-----....--....-----..-.---... ------.......-... ........... ...........................................
an Francisco and Sacramento .....................................................................................................
SanI P ra-isco.. .. -... --.-.-..---...--. --.. .....-.....----........ ...--------........--..........---.----------..---------------


Nonterminalpoints....


1906-7


330,195
56,779
17,305
32,037
59,239
27,216
54,747
367.311


1907-8

281,413
46,895
13,200
43,302
46,903
24,258
28,842
454,629


1908-9


238,426
39,828
12,914
26,427
35,228
19,924
24, 32
412,133


944, 829 939,442 809,512


Per cent.
61.1
41.2
34.9
38.9


Percent.
51.7
34.9
29.9
48.3


Per cent.
49.9
33.8
29.4
50.1


1 1. C. C. Docket 1665, Exhibit No. 29 of Traffic Bureau of Southern Pacific (Mr. Butler), Oct. 25, 1909.


During the three years included in the statement presented in Table


, from 49.9 per cent to 61.1 per


cent of the westbound traffic through the Ogden gateway was destined to the various Pacific coast terminals,
E and from 38.9 to 50.1 per cent to nonterminal points.
The forgoing evidence tends to show that only a small portion of the westbound transcontinental traffic


PANAMA


CANAL









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


Pacific coast States than is received; but most of the traffic goes to foreign countries aM to the Middle


and
and


tons.


not to the eastern part of the United States. The heaviest items of the outbound tonnage-lumber,
oil-are not sold largely in our eastern markets.
The water-borne traffic eastbound from our Pacific to our Atlantic ports in 1910 aggregated about 141,600:
* In 1911, after the California-Atlantic Line had entered the field and the traffic of the Pacific Mail a;,


American-Hawaiian had suddenly increased, the total was about


313,500 tons.


According to a reliable esti-


mate, the total eastbound transcontinental traffic in 1910 and in 1911-by coastwise and by rail i-wa


,000,000 tons per annum, which was the amount of the westbound tonnage in 1909.


I I a.


about


,858,400 in 1910 and about


,686,500 in 191


to have been somewhat less in 1911 than in 1910.
cent of the eastbound transcontinental traffic in 1
carriers was respectively 5 per cent and 10.5 per ce


Therar oa shr was* .*


i. The tonnage of the transcontinental railroads is know
The estimate shows that the railroads carried nearly 98 pe
)10, and 89.5 per cent in 1911; and the share of thew ;te
-4-' S

Ut.


The leading commodities transported eastbound by the transcontinental railroads are listed in Tables


and XI, pages 66-68.


Fresh, dried, and preserved fruits and vegetables, fresh, frozen,


* S'


dried, smokedft csstacfl


and canned fish


, fish oil, hides and skins, leather, twine and cordage, wool, barley and malt, wine, earthenware


and spices are among the leading articles shipped to eastern markets.


To the Central West these articles and,


in addition, a certain amount of sugar are shipped, some sugar also reaching New York via the Sunset-Gulf
route. The Central West likewise purchases some Pacific coast lumber, wood products, and barley.
The percentage of traffic moving by water is less in the eastbound than in the westbound business, cfiey
because fresh fruits and vegetables are not at present handled by the water carriers, and because some of the.


bulky commodities, such


as lumber, do not find a ready market east of the Central West.


Westbound water-borne traffic originates throughout a comparatively wide area extending from the Atlantic


seaboard to Chicago;


but the nature of eastbound water-borne cargoes is such that they are not carried inland


in large amounts from the eastern ports of destination.


Shipments from the Pacific coast to the Central West


are almost entirely by rail.
The eastbound transcontinental railroad traffic has not been classified by destinations, but it may


b


assumed that, as in case of the westbound business, only the smaller portion is strictly transcontinental.


e safely
From


20 to 22 per cent of the westbound tonnage originates east of Buffalo and Pittsburgh, but the percentage of the
eastbound tonnage destined to points east of Buffalo and Pittsburgh is probably smaller.


III. TRANSCONTINENTAL RAIL AND


WATER RATES.


A. TRANSCONTINENTAL RAILROAD RATES.


by c


The present rate systems of the transcontinental railroads have been largely influenced by the rates charged
oastwise carriers. An analysis of the present rates from coast to coast charged by the railroads and by


the competing water carriers must necessarily precede an intelligent consideration of the probable effects of


the Panama Canal upon the traffic and rates of the transcontinental railroads.
analysis with a brief description of the transcontinental rate structure. In a v


It will be well to begin this
olume on Railroad Traffic and


Rates the main features of the transcontinental rate system are described as follows:l


1. Blanket or common rates are charged on westbound transcontinental traffic from most points east of the Missouri River. This
is true of both class and commodity tariffs, but, as will appear as the discussion proceeds, there are numerous exceptions made to the general


policy of blanketing rates from the territory east of the Missouri.


Upon some commodities the rates eastbound from the Pacific coast are


the same to all places east of the Missouri, and on more articles common rates prevail to places east of the Mississippi, but the blanketing
of rates is less general upon eastbound than upon westbound shipments.


2. Upon eastbound traffic, and to a less extent upon that toward the west, graded zone tariffs have been established.


*of the Rocky Mountains are classified in 10 "rate groups,


A to J.


The places east


Upon the higher classes of freight and upon numerous commodities


the rates to all groups are the same, but upon the lower classes and upon most commodities the tariffs vary by rate groups.


westbound are practically identical with those eastbound, i.


Class rates


e., graded for classes below the thr;and in westbon omdt alt


A"i"E/lAiAAA "


WeS


I I


j: i


j


w


_


_ I










:Ei


The 10 rate groups A to J referred to are defined in the accompanying
les extent westbound, the rates from and to the Pacific coast are graded
The rates on all articles not so graded are blanketed, i. e., they are the same
River on commodities shipped to and from Pacific coast terminals.
The rates to intermediate points such as Spokane and Reno are generally


Plate A. Eastbound, and to a
according to these rate groups.
to all points east of the Missouri


higher than to the Pacific Coast


terminals, and are, for the most part, not blanketed. Recently, however, the rates on some commodities to
these interior points have also been blanketed and have, in some cases, been made equal to the charges granted


to the coast terminals.
has long been opposed
sion, which rendered d
1909, 1910, and 1911.
in that the commission
are made. Five terri


The system of charging higher rates to the interim
by the intermountain cities, and relief was sought
decisions regarding Spokane,' Wash., rates in 1910
The Spokane and Reno decisions announced Ju
then attempted to change the system according I


trial zones were established


by the commission


i: i






/ ,
/


lii **:'
1^-,'


a


I1


ior towns than to the coast terminals
of the Interstate Commerce Commis-
and 1911, and Reno,3 Nev., rates, in
ne 22, 1911, are especially important
bo which rates to intermediate points
, as shown in Plate B, and it was
rate may be made than to coast ter-
b exceed those to the coast terminals


ints were not to be more than 15 per
is to the coast terminals. No opinion
4t involved in the proceedings. These
mxe Court for review, but they indicate
continentall railroad charges may prop-


early be allowed to be affected by the competition of the coastwise water lines.
Table VII tabulates the westbound transcontinental class rates now in effect and shows the extent to
which they are blanketed. The various groups A to J are those defined by Plate A. Table VIII gives the
eastbound class rates. Class rates, however, are of but slight importance in the transcontinental shipments, for
but few articles are shipped under the class tariffs.
Commodity rates are quoted, in the transcontinental tariffs, on over 3,000 different articles to the coast
terminals, and on a somewhat less number from those terminals. The westbound commodity rates on selected,
leading articles shipped to the Pacific coast terminals are shown in Table IX, and the eastbound commodity
rates on articles of similar importance shipped from the Pacific are given in Table X. They are quoted to and
from the various rate groups A to J defined in Plate A, so as to show the extent to which they are blanketed
and graded.
The transcontinental eastbound railroad rates on lumber are fixed in accordance with a different plan
than is followed in making other commodity rates, and are published in separate tariff books. Table XI states
the lumber rates from the Pacific Coast States to various indicated eastern. and central western markets. The
terms coast rates, Spokane rates, Montana-Oregon rates, Truckee rates, etc., refer to different lumber shipping
districts. The rates quoted in columns A to F, in the case of the charges from the northwestern area, and in
columns 1 and 2 under California rates are the charges on different kinds of lumber products as defined in the
footnotes of the table.


I; ; 3498-12-



:i,


iCity of Spokane et al. Northern Pacific Railway Co. (21 1. C. C. Reps., 400-427).
2 Railroad Commission of Nevada v. Southern Pacific Co. et al. (21 I. C. C. Reps., 329-384).


s::igi~


AND TOLLS.


j


ordered that in shipments from zone 1 to intermediate points no higher
minal points, that from zone 2 the rates to intermediate points may no
by more than 7 per cent, that from zone 3 the rates to intermediate po
cent, and from zone 4 not more than 25 per cent, above the through rate
was expressed as to zone 5, because the rates from that territory were no
orders of the commission have been appealed to the United States Suprei
the attitude of the commission with respect to the extent to which transc


:.':*


PANAMA. CANAL TRAFFIC








PANAMA


CANAL


TRAFFIC


AND


TOLLS.







PANAMA
a


CANAL


TRAFFIC


AND


TOLLS.
LLJ'C2


oD





4 io



















0C )
i








--------L











.o w i 0


S0 -
-
.I, I.



I ,4 <

/ 4 W -

I \. /O-)
I,~~~Q I (1) /4~l~c


cc 0Li

1..-^











PANAMA


CANAL


TRAFFIC


AND TOLLS.


TABLE VII.--WESTBOUND TRANSCONTINENTAL RAILROAD CLASS RATES.


[Rates in cents per 100 pounds.]


Classes.


Class I .................................

Class.I...................................

Class III................................




Class V ...................................




Class B1..................................

Class C.................................

Class D..............................

Class E.


To north Pacific coast terminals from groups-


To California terminals rom groups-


A.

(300


260


220
190
190
165
160
160

125
125
100
100
100
100
95
95


1 Upper line-class rates via gateways


10 to 16; lower


line=class


tes via gateways 1


to 9 and via 17.


TABLE VIII.-EASTBOUND TRANSCONTINENTAL RAILROAD CLASS RATES.

[Rates in cents per 100 pounds.]


Classes.


Class 1...............


2..................................




lB. ....... .........
3.,............................ ..-


4..................................
5"... .*..-..-:, - -.. --- ..--------*-



D.................................


Class E...


From north Pacific coast terminals to groups-


From California terminals to groups-


riii: fi~~~




























..... ..








LJ


a


TRAFFIC


AND


TOLLS.


TAs IX.--WESTBOUND


TRANSCONTINENTAL COMMODITY RAIL AND WATER1 RATES.


[Rates in cents per 100 pounds.]


PANAMA


Commodities.


Harvesters, reapers, etc. (24,00
pounds).........................
Plow, harrows, etc. (24,000 pounds)

Beer, maltextract in glass or stone,
paed or in wood.............. -
Boots and shoes, .o. boxed .....

Cement, building and paving, in
packages(40,0 pounds).......

Cereal breakfast foods in packages..

Chinaware, not including orna-
ments,boxes,barrels, oroaks
(24,o0 pounds).................

Underwear, boxed (20,000 pounds)

Cofee (green), In sacks ..........
Coffee (roasted) in boxes, barrels,
or drumn...................... ..

Crakears, etc, et., in boxes, barrels,
basket, or tubs, or cases (24,000
pounds)....-...............--....

Creamery and cheese factory ma-
chinry(24,0 pounds).........

Cotton sheets and sheetings, etc...

Earthenware, stoneware, and
of-erIy (packed) (24,o00
pounds) .........................

Electrical goods, trolley wire, line
materials, ete...................
Chairs, cane, carpet or leather
seated, boxed (20,000 pounds)...

Glass, common window, boxed
(24,00 pond).................

Mechanics' tools, boxed..........
Harness and saddlery, n. o. a.
(20,000 pounds).................
Iron and steel rails, girdrs, bars,
plate No. 11 and heavier, etc.
(0,0oo pounds).................
Boiler plate, n. o. S., NOe. 11 to 16,
not bent or punched (40,000
pounda).........................


Billets, blooms, ingots, and scrap
steel (,00 pounds).........
Pipes, fitting, and connections...

Whisky, in bulk, in barrels, or
drzus (24,000 pounds) ..........
Gas and gasoline engines..........
Condensed milk in tin, glass,
packedinboxesorinwood(40,000
pounds)........................

Nails, spikes, and wire (40,00
pounded) ........................
Oil-well supplies (3, pounds)..


I t


275


140


150

200

140

160


220



160


150




200

125

175












-^ -


175




150


L. B. C


CG.I. L.c.L. C.1. L.c.L


125 ....... 125 .......

125 ....... 125 .......

100 ....... 100 .......

....... 275 ....... 275



90 140 90 140


100 150

150 200

80 140

110 160


150 220

150 .......

110 160


95 150

160 .......

....... 200

90 125
....... 175

220 .......


I


100


80

110


150

150

110


95

160




90
* .. a a,


w .-. --a a


85 ....... 85



70 150 70

125 175 125

140 ....... 140


85 150 85

o90 ...... 90o
4 rj-k 41rn


i I


150

200

140

160


C.I. L.c.1. C.1. Lc.L C.1.



125 ...... 125 ...... 120

125 .... 125 ...... 120

100 ...... 100 ...... 100

....... 260 ...... 250 ......

....... 100 45 "100 45

90 140 90 140 90


100 150 100 150 100

150 200 150 200 150

80 140 75 140 75

110 160 110 160 95


220 150

....... 150

160 110


150 95

....... 160




125 90

175 .......















175 125

....... 140
-! .1


I ... -
a. . ,


85

90
150


1W

150

175




150

* -- a -

* ... a


110 160


95 150

S160 ......

...... 175

90 125
...... 175

200 ......


80 ......


85..

60 100

65 150

125 175

140 ......


85 150

80 -....

150 .-...-


F. G.


L.c.l. C.I. L.c. C.I.


...... 115 ...... 115

...... 115 ........ 115

...... 100 ............



100 40 100 40

140 90 140 90


150 100 150 100

165 150 165 150

140 75 140 75

160 95


220 150 ............


Jiau .-.... ou1

110 160 110


90 150 85

160 ...... 160




90 125 90

.--. 175 ......

200 ...... 200


80 ...... 80


85 ...... 85

60 100 60

65 150 65

125 175 125

140 ...... 140


85 150 85

80 ...... 80

150 ...... 150


L.c.1. CJ. L.c.L C.1. L.c.L



...... 115 ..................
...... 115 ..... ...... .....






100 50 100 50 100




150 100 150 100 150

165 150 165 150 165

140 75 140 75 140

.................. ...... 160


110 160 110


...... ...... -.. a4
* -....- 140 -.-.-. 140


110 160 110










90 125 90

* -. .. . a.


- I. - .


*. I........

-. ... . .


Railroad rates to North Pacific terminals from groups-


C.L


- - a a
------


100


I


I


- """""- ^ ^ """ ^ ^ ^ ^ -


f I


CANAL


[ !


I


I


I I


I i


I











PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE IX.-WESTBOUND TRANSCONTINENTAL COMMODITY RAIL AND WATER RATES--Continued.

[Rates in cents per 100 pounds.]


Commodities.


Pickle, n. o0..... S...........---
Swing machine, k. d., boxed or
c~rate ...........................-
Soap, in packages (40,000 pounds).
Stamped ware..-...............--
Stoves (cast iron), cooking, heat-
ing, etc. (24,000 pounds)........
Tin plate or sheet metal for trunks.
Tobacco, unmanufactured, in cases
or hogheads (20,000 pounds)...


Railroad rates to North Pacific terminals from groups-


L.c.1.


150

175

130





125

175


C.1. L.c.l.


C.1. I L.c..


L.c.1. C.LI


L.e.1.I C.L


C.1.


L.C.L. Ci.


Commodities.


etc. (24,000


Plows, harrows, etc. (24,000 pounds) ....
Beer, malt extract in glass or stone,
packed orin wood....... ....... 150
Boots and shoes, n. o. s. boxed .... 275
Cement, building and paving, in
packages (40,000 pounds)........ 100
Cereal breakfast foods in packages.. 140
Chinaware, not including orna-
ments, inm boxes, barrels, or casks
(24,000 pounds). ................ 150
Underwear, boxed (20,000 pounds) 200
Coffee (green), in sacks............ 140
Coffee (roasted) in boxes, barrels,
or dr ums. .,.... .... ... ...-. .. 160
Crackers, etc., in boxes, barrels,
baskets, or tubs, or cases (24,000
pounds)..............22........ 220
Creamery and cheese factory ma-
chinery (24,000 pounds)......... ....
Cotton sheets and sheetings, etc... 160


Earthenware, stoneware, and
crockery (packed) (24,000
pounds) ........................
Electrical goods, trolley wire, line
materials, etc ...................
Chairs, cane, carpet or leather
seated, boxed (20,000 pounds)...
Glass, common window, boxed
(24,000 pounds) . .................


Railroad rates


..... 160 .....

200 ..... 200

125 90 125


C.I. L.e.l.


125 .....
125 ....

100 150
..... 275

.....I 100
90 140


100 150
150 200


220 150


..... 150
160 110


..... 160


to California terminals from groups-


1 I I I


C.I. L.e.l. C.I. L.c.


3.


Water rates
to Pacific
coast ports
from
New York
(Panama
Line).)


L.c.1.


Water rate
to Pacific
coaport
from
New Yor
(Hawsaiian
Line).


Harvesters, reapers,
pounds) ...........


C,1. IL.e.L


i


I


I ,


1/~_









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE IX.--WESTBOUND TRANSCONTINENTAL COMMODITY RAIL AND WATER RATES-Continued.

[Rates in cents per 100 pounds.]


Commodities.


Boiler plate, n. o. s., Nos. 11 to 16,
not bent or punched (40,000
pound s) ........... ............
Balets, blooms, bigots, and scrap
steel (60,000 pounds)........ 100
Pipes, fittings, and connections.... 150
Wnbsky, in bulk in barrels or
drums (24,000 pounds).......... 175
Gas and gasoline engines..- ...........
* Condenset milk in tin, glasspacked
in boxes, or in wood 40,000
pounds)............. ............ 15
Nails, spikes, and wire (40,000
puds). ................. ........
Oil-well supplies (24,000 pounds)......--


Paints (40,000 ponds)..


Paper, news......
Paper, building...
Parafin wax ......
Pickles, n. o. s....


.. if if ...
- -ififif. - if-
- if f if. if i if f if i-f- -
if if if if if- - - .


ewing machines, k. d., boxed or
crated.........................-- .. 175

Soap, in packages (40,000 pounds). 130
Stamped ware .........................
Stoves (cast iron), cooking, heat-
ing, etc. (24,000 pounds)...........
Tin plate or sheet metal for trunks. 125
Tobacco, unmanufctured, in cases
or hogsheads (20,000 pounds).... 175


Railroad rates to California terminals from groups-


A.


C..L L$el C.I.


C.L IL.eL


L.C C.I .1. ILe. 0.1. L.c.1.


60 100
65 150


125 175


85 150


95 130
75 110
75 110


H.



L.cJ. C.I.



S. .-. 85

100 60
150 65

175 125
..... 140


150 85

..... 70
..... 150
130 95
110 75
110 75
150 90
150 100


.1 175


I.



L.CI. C.1.


L.c.LI C.I.


Water rates
to Pacific
coast ports
from
New York
)anama
i~ne).1


Water rates
to Pacific
coast ports
from
New York
(Hawaitan
Line).


1 Panama Railroad Steamship Co.


SManuactured smoking.


...




* lr*E h I e hh a "":h** hhm!m| '*


PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE X.-EASTBOUND TRANSCONTINENTAL COMMODITY RAIL AND WATER' RATES.

[In cents per 100 pounds.]


Commodities.


Dried fruits (raisins, prunes, and
figs) in boxes, barrels, casks or
kegs (40,000 pounds) ............
Preserved fruit inbulk inwood....

Fresh apples (30,000 pounds) .......

Melons (24,000 pounds) ..........


Fresh vegetables (20,000 pounds) a.

Potatoes (30,000 pounds) 2..........

Citrus fruits.......................

Deciduous fruits .... ...........

Grapesand peaches (20,000pounds)2.

Sugar in packages (30,000 pounds)..

Sugar in packages (60,000 pounds)..

Sugar-beet seed in packages........

Earthenware, packed..............

Fish, fresh or frozen, in refrigerator
cars (24,000 pounds)..............

Fish,canned, boxed (40,000 pounds).

Fish, dried, smoked, or salted, in
packages 1. cI. and in boxes or
s bundlesc.I.....................

Leather, various kinds, in boxes or

Hides, dry, in bales or loose (20,000
pounds)..........................


Skins,, various kinds, in
bales ..................


boxes


Fish oil.....................

Spices, n. o. s. (24,000 pounds)...
Twine and cordage..............

Woodenware, various kinds....


Wool, in grease,
pounds).......


in bales (24,000
Wolscurdi ble (4,0


Wool, scoured, in bales (24,000
pounds)..........................
Barley ...... ........................

W heat ................. ......... ....... ...........

Malt, in sacks..................
Wine, in wood....................


Railroad rates from North Pacific coast terminals to groups-


A. B. C. D. E. F. G. H. I. J.


L.c.l. C.I. L.c.1. C.. L.C.1. C. 1. L.c.1. C.1. L.c.1. C. L.C.1. C.I. L.c.. 0.1. L.e.1. C.I. L.c.1. C.I. L.c.L C.



220 110 220 110 220 110 220 110 220 110 220 110 220 110 220 110 220 110 220 110

180 75 180 75 180 75 165 75 165 75 155 75 155 75 155 75 155 75 15

..................... 100 l ....... 100 ...... 100 ...... 100 .... ....1 -- 100 -o 100 ..... g

..................... 120 ....... 115 ...... 100 ....... 100 ...... 1 1 ..... 100 ...... 10 ..


150


150

125




250


I.*. .-. ....

.. ...- ,.. ...


-. _. .


120



70
125


75 150
....... 200
.. ... ... ...


135

100

150


- .* -

..T **-***

.* . --

I. ...... *


150

200


150


150


125




250


170


-. .... ..


150 ....... 150


250 I..... 250

70 .....

170 125 170

145 95 145


. ... .

. .... i


125

200 .



150


125

i ar-


...... 150


* .. --- -


*. .., -...


125 ...


-------.---.


200 ......

...... 150


120 ......



70 ......

125 170


1 -. .1 I


-- ----- --


120 -...... 120

.. ..- - - .. -...e

70 ...... 70

125 140 125

95 145 95

125 ... .. 100




..--*- -- .-- **- ****
---- --- ..* ,,,* .a

- - -,, ,- *


SSee also page 67.
SFrom fruit-shipping centers specified in tariffs; in
deciduous fruit rates applying to other destinations.


case of California terminal rates on grapes and peaches, those shown apply only to certain destinations, regular


-** i or

{ 60
"65
* -* --. *:


__ __ _(_ /.t_


.......


... .......


I


111 .. .1 11 ... ... ...


. :. . .. ... :













TABin X.-EASTE








Commodities.






SDried fruits (raisins, pnes, and
flgs) in boxes, barrels, casks, or
kegs (40,000 pounds).............
Preserved fruit in bulk in wood..

Fresh apples (30,000 pounds) s......

elos (24,0 0s 0 ponds) s .......

Sreshvegetables (20,000 pounds) 2..

Potatoes (30,000 pounds) ..........

Citrus ruits........................


Deciduous fruits....

Grapesand peaches(20,000 pounds)'.

Sugar in packages (30,000 pounds)..

Sugar in packages (60,000 pounds)..
Sugar-beet seed in packages........

Earthenware, packed ..............

Fish, fresher frozen, in refrigerator
cars (24,000 pounds) .............

Fslh, canned, boxed (40,000pounds).


Fiah, dried, smoked, or salted, in
pacae sl1. .1.and in boxes or
bmd es c.l .......................
Leather, various kinds, in boxes or
rollas..........--... ---..--......-

Hides, r in bales or loose (20,000
pounds..........................

Skins, various kinds, in boxes or

sh o. ...... ...... ...............

pices, n. o. s. (24,00 pounds) -....
Twine and cordage-..--...........

Woodenware, various ands....-....

Wool, in grease, in bales (24,00
pounds)....-.............~....
Woolu, s ed, in bales (24,000
pounds)..........................


Barley. ........

.heat...... .....
Malt, in sacks....
Wine, in wood...


PANA


EOUND TRANS(


MA


CANAL


CONTINENTAL


TRAFFIC


AND


TOLLS.


COMMODITY RAIL AND


WATER


RATES-Continued.


[In cents per 100 pounds.]


Railroad rates from Califorma terminals to groups-


A. B. C. D. E. F. G. H. I. J.



L.e.L C. 1. L.J.I C. 1. L.cl C. 1. L.J. C. I L.c.L 1. L.cJ. C. I. L.cL C. 1. L.cd. C. 1. L.cJ. 0. 1. L.c.L C. I.




220 110 220 110 220 110 220 110 220 110 220 210 220 210 220 210 220 210 220 210

150 85 150 85 150 85 150 85 150 85 150 85 150 85 150 85 150 85 150 85
..... 110 ..... 110 ..... 110 ..... 110 ..... 110 ..... 110 ....... 110 .. 110..... 110 ..... 110



(115 -1.... 100 .. 100 ..... 95 ... 95 ..... 95 95 95

.......... ..... ..... .... ....... 75 ....* 7,5 ..... 75 ..... 75 .... 75 ..... 75 ..... 75

..... 115 ..... 115 ..... 115 ..... 115 ..... 115 ..... 11 ..... 115 ..... 115 ..... 115 ..... 115

..... 140 ... .......... ...... 115 -.. 115 1 115 11. -1 115- 115

..... 125 ..... 125 ..... 1 ................................................... ...... ....

..... 65 ..................... ... 65 1..... 65 ..... 60 ..... 60 ..... 68 ..... 85 ..... 60


- S..... ..

.. . .


... S


125 85

115 .....

..... 130


..... 25

70 .. ...
iAn fl


75 145



150 .....


ana iau ea
95 145 95

135 ..... 135

..... 100 ....

*.... 130 ....


130 .....

..... 250.

70 .....

125 170

95 145

135 .....


..... 130

621 ... --


125 75

- ------- ----

..... 125

150 85


..... 70
170 125

145 95

..... 135

100 .....

130 .- ....


.....63

125 75 125 75
---------------------------------------- ----- ----- -----


..... 125 ..... 125

150 85 150 85


125 85 125 85

115 ..... 115 .....

..... 130 ..... 130

250 ..... 250 .....

..... 70 ...... 70

170 125 170 125

145 95 145 95

..... 135 ..... 135


100

130

..5..


.....
* .t -
55...
55


- -- -



150


125

115

*....

250


170

145



100

130


Water rates
m Pacific
coast to
New York
(Panasr,
Lines).1


Any quan-
tity.


Water rates
from Pacific-
coast to
New York

Line).


Any quan
tity.


S-........................


45


50

75

60

4100

45

60

50-55


40
40


.............

- . .... .. .


45


... ... ..... -

* .... .... -


65

* *. 4**.... -* i
45-50


*- *......--



40

40
3542

35421


1 Panama I R. S. Co.; Pacific Mail S. S. Co.; Californi-Atlantic S. S. Co.
SFrom fruit-shipping centers specified in tariff; in case of California terminal rates on grapes and peaches, those shown apply only to certain destinations, regular
decduous frmitates applying to other destinations.


.... 130 .....

62)..... 55










PANAMA


CANAL


TRAFFIC


AND TOLLS.


TABLE


XI.-EASTBOUND TRANSCONTINENTAL RAILROAD


RATES


ON LUMBER.


[In cents per 100 pounds.]


Albany......................
Baltimore ........ ...........
New York and Boston......
Norfolk --.... .....--........
Philadelphia................
Richmond..................
Rochester...................
Syracuse....................
Utica..............--........
Chicago .......................


From points in Oregon, Washington, Idaho, Montana, Alberta, and British Columbia.'


Coast rates.


1 -


Spokane rates.


Montan -regon
rates.


Coast,
Spokane,
ontanea-
Oregon
rates.


Group E.


Propor-
tional rates
applying
from AI-
bina, East
Portland,
Portland,
and
St. Johns,
Oreg.


Group F.


75
75
75
75
75
75
75
S75
75


From points in California, Nevada, Oregon, and
Utah.S


Coast rates.


1.6



75







60


a.















65


Truckee rates.


Beckwith rates


Group
1.








72







57


1 Group A


rates apply to shingles.


Group B rates apply to lumber


(including creosoted lumber), and timbers


(including creosoted timbers),


of cedar, single-car lengths, and the following articles manu


actured from cedar: Blocks (base, comer, and head), box shook, columns, cross arms, eave troughs, guttering, ladder material, match blocks, match splints, molding
(carpenters'), paving blocks creosotedd or not creosoted), picture backing, pipe material, sash (knocked down), staves, heading and bolts, tank material, telegraph and
telephone brackets, ties, tubing (pump), window frames (knocked down).
Group C rates apply to long timbers, poles, piling, or lumber requiring two or more cars for transportation.
Group D rates apply to lumber (including creosoted lumber), poles (including cedar poles), piling (including cedar piling), and timbers (including creosoted timbers)
of cottonwood, fir, hemlock, larch, pine, and spruce, single-car lengths, and the following articles manufactured therefrom: Bark (hemlock), blocks (base, comer, and head),
box shooks, columns, cross arms, eave troughs, guttering, ladder material, lath (including cedar lath), match blocks, match splints, mine wedges, molding (carpenters')
paving blocks creosotedd or not creosoted), pickets (including cedar pickets), picture backing, pipe material, posts (including cedar posts), sash (knocked down), staves,
beading and bolts, tank material, telegraph and telephone brackets, ties, tubf~g (pump), window frames (knocked down).
Group E rates apply to articles manufactured from cedar, cottonwood, fir, hemlock, larch, pine, redwood, or spruce
lumber, as follows: Sash, doors and blinds; door, window, and screen frames; inside finishings; panel frames (used as
backing for keyboards for pianos); stairwork and veneering, in straight carloads, or in mixed carloads with any or all Minimum carload weight, when in cars 34 feet or
of the following named articles, viz, carpenters' moldings in the white for door frames and for inside finishing, columns, less in length, 24,000 pounds; in cars over 384
eave troughs, guttering, ladder material match blocks, match splints in packages, pickets, picture backing, pipe material, feet in length, 30,000 pounds.
including iron bands and wooden or iron connections for wooden pipe, consisting of ells, tees, crosses, and reducers; porch
balusters and spindles, pump tubing, tank material.
NOTE.-Cottonwood, fir, hemlock, larch, pine, redwood, or spruce lumber, and lath may be shipped in mixed carloads with the above-mentioned articles at the rate
named, except that the rate on cedar lumber and articles enumerated above, when shipped in mixed carloads, will be the Group B rate, but not less than 80 cents per
100 pounds.
Group F rates apply to articles manufactured from cedar, cottonwood, fir, hemlock, larch, pine, redwood, or spruce
lumber, as follows: Backing (picture), blinds, blocks (base), blocks (corner), blocks (head), box material, carpenters'
holdings, in the white for door frames and for inside finishing, columns, cross arms, doors, eave troughs, forest waste, Minimum carload weight when in cars 34 feet or
frames (door), frames (panel used as backing for keyboards for pianos), frames (screen, k.d.), frames (window), gut- less in length 24,000 pounds; in cars over34 feet
tering, heading, inside finishing, ladder material, lath, logs, lumber, lumber (cedar), lumber (redwood), match blocks, in length, 30,000 pounds.
match lumber, match splints (in packages), match strips, pickets, pipe material, poles (telegraph), poles (telephone),
posts (fence), sash, sawmill refuse, shingles, stairwork, staves, tank material, ties, timbers (mining), tubing, tubing
(pump), veneering.
NOTE.-Cottonwood, fir, hemlock, larch, pine, or spruce lumber, and lath may be shipped in mixed carloads with the above-mentioned articles at the rate named.
2 Group I rates apply on lumber (except woods of value, viz, cocobolo, ebony, lignum-vite, and rosewood), and the following articles manufactured therefrom: Blinds,
blocks (base, corner, and head), box material, columns, cross arms, doors, finishing (inside), forest waste, frames (door, window, and screen, plain or wired), guttering,
heading, lath, logs, lumber, match blocks, match splints; match strips or match lumber, moldings (carpenters') in the white, for door frames or inside finishing, pipe
material, poles (telegraph and telephone), posts (fence), sash, saw-mill refuse, staves, tank material, ties, timber (mining), tubing.
Straight or mixed carloads, minimum weight 30,000 pounds, except that minimum carload weight for unglazed sash in straight carloads will be 24,000 pounds.


7.:








S PANAMA


CANAL


TRAFFIC


AND


TOLIS.


B. RATES COAST TO COAST BY WATER.


The water rates between Atlantic and Pacific ports may now be described and compared with the charges


by rail.


The regular lines operating via the Panama and Tehuantepec routes have tariffs or schedules of rates,


and a comparison of water and rail charges may readily be made.


In Tables IX and


X eastbound and west-


bound rates via the Panama and American-Hawaiian Lines are stated side by side with corresponding rail


charges on commodities transported both by the railroads and by the water lines.


Direct comparison can be


made between the water rates given in the table and the rail rates quoted to and from territorial groups "A


and "C" in which the port of New York is located.


The relation of all-rail rates to rail-and-water'rates to and


from interior points is explained below.
The water rates on lumber from the Pacific coast to New York via the Panama and Tehuantepec routes are


given m Table XII.


They vary from 40 to 60 cents per 100 pounds ($8 to $1


per ton) by way of Panama.


Via Tehuantepee the rates range from 40 cents per 100 pounds ($8 per ton) to $20 per thousand feet of lumber.
The railroad rates from the North Pacific coast to New York vary from 75 to 85 cents per 100 pounds on dif-
ferent lumber products, and from the California coast from 75 to 80 cents per 100 pounds.

TABLE XII.-EASTBOUND TRANSCONTINENTAL WATER RATES ON LUMBER.


Kind of lumber.


Fir lumber:


Bough green...........
BRngh dry..............
Finishing suracd..
Flooring............


'*


Spruce or cedar:


Rough green................................


Rough d ry.................................................................................
i n hi g surfaced ........... .... ................... ......................... .....
Siding.. . . . . . . . . . .. . - . . . . . .


Dry .......
Green .....
eagles:
Extra "A"


* ..* , - . .....-..


- -... .. .. .. .. . ... -. . .- -... .. . ..


Perfection...
Eureka......
Clears.......


Panama Line,1 from Portland,
Astoria, Oreg.; Grays Harbor
and Puget Sound ports, San
Francisco and East San
Pedro, Cal., to New York.


Estimated
weight per
1,0o0 feet
b. m.


Pounds.
3,300
3,000
2,500
2,000


3,300
3,000
2,000
700


2500
2650
40caepe 0 oudOo$2Oe







tow0


Rate per 100
pounds.


American-Hawaiian Line, from Pacific
coast terminals to New York.


Rate.


40 cents per 100 pounds to $20 per M
feet.







-K


1 Rates via California Atlantic Line.


The Pacific Mail does not cater to the lumber traffic.


2 Per 1,000 lath.


Notes applying to shipments via Panama:
1. Lumber exceeding 35 feet in length or 12 inches in width or less than 1 inch thick will not be accepted for transportation except that the smaller pieces will be
taken when put up in secure bundles.
2. All shipments of lumber, shingles, and lath will be accepted and charges collected on basis of estimated weights shown opposite each item.
3. All small pieces of lumber to be put up in secure bundles.
4. We reserve the privilege of carrying all shipments of green lumber and shingles on deck


Shfi










PANAMA


CANAL


TRAFFIC


AND


TOIT.A.
fr~f\ rc .


- .- -


The rates by the water lines on different commodities range from 20 to 60 per cent below the railroad tauis
Upon some articles the difference is greater, while for others it is less. There is no general relation or fixed
differential between the water and rail charges, the water rates upon each commodity being sufficiently below
the rail charges to enable the steamship lines to secure the traffic desired.
The rates over the Sunset-Gulf route have, since 1909, been the same as the all-rail rates. Southern Pacitie
traffic agents route freight over the Morgan Line steamers as their connection between the Gulf and New York;
and by getting freight through from New York to San Francisco within an average time of 15 days and 5 hoursz
and by absorbing the rail rates to and from interior points, they obtain a large tonnage of freight for their com-
bined rail and water line. When freight is shipped via the Sunset-Gulf rou se from an interior point such as Pi
burgh, the rate is the same whether the freight moves direct by all rail from Pittsburgh to the West Coast or to
New York and is then forwarded via the Sunset-Gulf route. The Southern Pacific absorbs the rail rate to New


York.2


There is no fixed or definite relationship between the rates via the Panama and Tehuantepec routes.


Origi-


nally the rates were practically the same by both routes; then, for a time, the Panama charges were generally
less, especially eastbound, the Panama line being the differential or longer route as compared with that via
Tehuantepec. At present, many rates are the same by the two routes; on numerous commodities the Tehau-
tepec rates are slightly less; and on some articles the charges are less via the Panama route. In making ea
prisons, however, it is important to bear in mind the difference in the service rendered by the Panama Line an
the American-Hawaiian Line. As hereafter explained, the rates of the latter are to and from coast terminal
while the Panama line absorbs railroad rates from interior points to the extent of 20 cents per 100 pounds ao
westbound shipments, and the entire rail rate from the Pacific Coast to certain interior points in California.
In Table X, a small number of the eastbound water rates are quoted. The information contained in
Table X is supplemented by the detailed list of commodity rates westbound and eastbound via the Panama
route and via the American-Hawaiian Steamship Line, presented in Table XIII, A and B:

TABLE XIII A.-WESTBOUND WATER RATES VIA PANAMA AND TEHUANTEPEC ROUTES, NEW YORK TO PACIFIC
COAST TERMINALS.
[In cents per 100 pounds.]


Commodities.


American-
Hawaiian Line.


Agricultural implements..................... -.-------- .. .....-.. .....--......... .. .---...............................-.............-
Bath tubs, iron-porcelain lined ....................----..... .................. ---..-----.--.......-.......--- ....-.-- ...---------
B ats, baseball .............. ...----.. .. --.. -- ..--.. -- --- --.-- --. .-- . . . -----*.------.--*-.. . . ------.*.-".- **.--- "*--..
Belting, leather or rubber... ....................-- ..-..-. .......- ..-.- ..-. .. ..-----......----..-.---. .---- --- -- .-*.---. --..--
B icycles............. ..... ..-. .......... .. .--. .--- .-- -.--- --.---.--- ---*- --.-*-,-*..- --.. ..-*--"" .. ..-- .----. .
Binders' boards....................... ... .. ..- -.---- - ---- ---------
Books, blank, including school composition books ............................................--------............---- -- .........---..---
Brass and copper heavy goods .................... .................. ... ................- .. ... .....-- ..--.. ....-.......- ........ ..--


Calcium chloride........
Candles, wax, grease....
Canned goods...........
Chemicals and drugs&...


- -.- ., ,. ...- *----- .--------------------------------------------------. ............................................................................................-------------

* ,----------------- ---- - -- -- -- --- ------*- ---- ---- --- ----- ------ ---- ------ ---- -- -- ----- --- ----- -----


Clothes pins .......................---. ----..-------.----------- -------------** **.------------------- - -- --**- *** ---- ----.............


.... ................. ... ------ - .....- -----..---


Clothes wringers.


Copper w ire. -...... ........................ .---- ........ . . . ..------ ........... ..-- ----.. ----. .-- --**................... ......... .
f3nn3 ^ g tTH^TrS . .-------------------------.*-------------------------------------------------------------------------------------------------------------- -------------------- ------------------


Panama Line.


'"::::""""":"a:~i~i ;;~ili::~i"~l"""~ii ~
,~; sE: i


I


__





xxxxxxI xx x


TRAFFIC


AND


TOLLS.


TAB XIT A.--WESTBOUND WATER RATES VIA PANAMA AND TEHUANTEPEC ROUTES, NEW YORK TO PACIFIC
COAST TERMINALS-Continued.

[In cents per 100 pounds.]


Commodities.


Horseshoes, per keg ...............


In lators, glass or porcelan,..................... ....................................................................................
Bak~, band, bar, or plates........... ....................................................................................................
I e s ..... .. .. .......................... .....................................................................................
Iron, blooms and blets....................................................................................................................

i ipblaek, in barrels....................................................................................................................


Machinery, n.o.s., K. D. .................................................................................................................


Mcik condensed ........... ..............................................
quti, edible...............................................................................................................................
Nuts, kenes and eats ...............................................................................................................
Of1, luicatiag..........................................................................................................................


Tper lags...................................................... .........................................................................


PaSer, book ....... .............. ..
Paper, building....................
Paper tickets, sales, transfer.......


Paper, writaing... ........................................................................................................................



ser y...... .~............................................................................................................................

daarsthrs................................................................................................................................
Ruber god...............................................................................................................................


Steep. are..-.. ............. .... ..... ... ..... ............ ............ ......... .................................. ........... ..........
SOdt, auh-........... .......................................................................................................................


Stamped ware ...........................................................................................................................


Stove polish..
TapIoca.......
Tobacco, manui


factored among ................................................-.........................................................


aisysr.i.l.i. ..- ....... .-. .................. ...... ----*-.-... .-----.. .-. -........ -..... .... ........... .......... ................

T rauiki ..s. .. .. .. .. . ...............,-..-.......--.....- -- , .-- --... --..... ,..............-.. ..... ..... . ............. .-


War......................................-..........-................................................................................^...
W'Aebarbed or...plain..................---..-............................................................................................
Wax0ls - . - - . p.* p*- p.p
- * * - - -


Wire rope..............................
W lot ...................................


American- Panama Line.
Hawaiian Line. Fanama Line.


fil



:""


70-88


PANAMA


r


CANAL


55
55
65
40
125
85
100
60
100
150
60
60
65
55
55
100
70
50
75
100
50-100
200
80
50
40
40
85
65
65
65
75
100-300
175
60
70
60
55
60
65


60
55
70-76
45
120
85
100
60
125
125
60
65
70
63
52
120
70
52
77
105
70
180
123
55
45
45
84
70
65
63
95
110-360
150-200
65
105
70
55
77
70


IEEEE




Ann ill!


PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE XIII


B.--EASTBOUND


WATER


RATES VIA PANAMA AND TEHUANTEPEC
TERMINALS TO NEW YORK.


ROUTES--PACIFIC


COAST


[In cents per 100 pounds.]


Commodities.


Asphaltum...-


Barytes ....................................................................................................... .......................... ...
Beans, anilla.......... ..................................... ...........................................................................

BOORsl .....................................................................................................................................
Beeswax ................. .................. ........................................................................................


Ba eds.goods.... ............................. ..............................................................................................
CannFruit dried ............................................................................... .............................................
Frui t, dried...............................................................................................................................



H household goods......... ................ ....................................................... ............................................. ..
Household goods...................................................................................................................................


Liquors..... ............................... ......................................................................................
Lum ber and shingles ........ ............................................................................................................
Machinery .....................................................................................................................................


hetals.....

N uts, e dl ....s........................... ..............................................................................................
atsiner .....................................................................................................................................



Oels, .. .... .. ..... .. .......... .... .. ..... ....... .. ... .............. .. ..... .
Tes e ........... ..................... ........................


W ool.. ........... ................................................................................ ........................................


American-Ha-
wafian Line.


S35
40
45
35-421
200
40
65
45
45
35- 42j
65
90
100
35- 45
40


40-75


Panama
Line.


40



9B
100




45-5
36-40


160
36-s


-100



46-
75
70
35







49-75


1 Forty cents per 100 pounds to $20 per M feet.

As is shown by Table XIII, A and B, the coast-to-coast rates via the Panama and Tehuantepec routes,
. while similar,, are not absolutely alike. Some are identical by both routes, and others less via Panama, but the
greater number are slightly lower via Tehuantepec. In shipments to and from the interior, however, the rates
of the Panama line are lower because of its absorption of part or all of the rail rate. There is no traffic agree-
ment covering the rates by the two routes; but, naturally, the rates over the two routes are made with reference
to each other and to the rates of the transcontinental railroads. The general level of charges by each of the
water routes is so fixed as to enable each of the water lines to obtain sufficient traffic in competition with
the other and with the rail lines.


C. INTERRELATION OF INTERCOASTAL


WATER RATES AND TRANSCONTINENTAL RAIL RATES.


The extent to which the transcontinental railroad tariffs are affected by the coast-to-coast water rates has
long been a disputed question; but it is indisputable that the rail charges are influenced by water competition.
The Interstate Commerce Commission in 1911 reiterated its former findings as follows: (City of Spokane et at.
v. Northern Pacific Railway, 21 I. C. C. Reps., 416.) "This question of fact has been often considered in the




I:.


CANAL


TRAFFIC


AND


TOLLS.


defendants by rail. We have used San Francisco as the destination port upon the Pacific coast, and in some
instances rates from New York to San Francisco are a trifle lower than to the other coast cities; but, generally
speaking, the San Francisco rate is maintained at Los Angeles, Portland, Seattle, Tacoma, and other points
on the coast. Passing for the time being the extent and effect of this competition at interior points, it must
be found as a fact that there is real and active water competition between New York and San Francisco, between
the Atlantic and the Pacific coasts, which does limit the rate of transportation which can be charged by rail
between those points upon nearly every article which moves by rail."
The fact that the water lines have at times been controlled by the rail carriers does not alter the conclusion
that water competition is a factor influencing the transcontinental rail rates. The traffic by water is now
increasing, and the water rates are materially lower than the rail tariffs. Moreover, potential ocean competition
influences the charges fixed by the railways. As was stated by Commissioner Prouty in the Spokane decision:
It is said that the amount of the movement by water is so insignificant that it should be disregarded. The amount is not insignificant.
If reference be had to the traffic which actually originates upon the Atlantic seaboard a considerable percentage moves by water, but
the significant thing is not the amount of the movement, but the ever-present possibility of that movement. As was said by the Supreme
Court in the Alabama Midland case, speaking of the effect produced upon rail rates to Montgomery by the Alabama River:
* "When the rates to Montgomery were higher a few years ago than now, actual, active water-line competition by the river
came in, and the rates were reduced to the level of the lowest practicable paying water rates, and the volume of carriage by the river
is now comparatively small; but the controlling power of that water line remains in full force, and must ever remain in force as long as
the river remains navigable to its present capacity."
So here the ocean is ever present. The possibility of using it as an avenue of transportation is ever open, and the fact that it will
be used, if for any considerable length of time the defendants maintain rates which are so high, or so adjusted as to render it profitable
for shippers to resort to that means of transportation, is never doubtful.
The system of blanketing the transcontinental rates from points east of the Missouri River is the result
of this water competition, active and potential; and so, too, is the difference between the through rates to
and from the Pacific coast terminals as compared with the charges to and from the intermediate points in the
West. The rate percentages established in the Reno and Spokane decisions by the Interstate Commerce
Commission, to apply upon westbound transcontinental traffic, express the judgment of the commission as to
the force that may well be allowed water competition in controlling the railroad tariffs.1
As the evidence just presented clearly indicates, the transcontinental railroad tariffs have been, and now
are, influenced by the rates charged by the coast-to-coast water lines; but it is equally true that the rates of
the steamship lines operating via Tehuantepec and Panama are to a large extent made with reference to the
tariffs of the transcontinental railroads. The competition of the water routes with the rail lines, and the recur-
ring rate wars have, in the past, forced the transcontinental railroads to adopt the system of rate making now in
force; but during recent years rate wars have been avoided; the transcontinental railroads have not been
under pressure to fight against the water lines for traffic; the tonnage moving by rail has been large and has
rapidly increased; and the policy of the railroads has been to maintain, and where practicable, to raise the


established level of rail tariffs.
Since 1907, when the American-Hawaiian Line began
increase in the water-borne intercoastal tonnage; but thi
charges by the transcontinental railroads. It was stated
in the Reno decision,2 that "Out of 1,535 commodity rates
has taken place since December 1, 1906, as to 696 of such
advances and reductions as to 132, and advances as to 418.
were increased from the whole eastern blanket."


its service via Tehuantepec, there has been a large
ere has been no consequent general decline in the
by the Interstate Commerce Commission in 1911,
compared by the carriers, it appears that no change
commodities, reductions have been effected in 287,
Of the items increased, the rates on 318 commodities


The relation that has recently prevailed between the rates of the intercoastal water lines and the trans-
continental rail tariffs is indicated by a statement made by the assistant to the vice president of the Southern
Pacific in the testimony taken by the Interstate Commerce Commission in the Reno case. The statement, which
was an answer to the question whether the water lines controlled the transcontinental rates, was "I believe
the rail lines control the making of their own rates, and when we say to-day that we do not wish to go any lower,
ji rt l-r- 1_ --i j l --- -'- i1- -.- .... 1-- = -1 11- if r ._._

PANAMA








PANAMA


CANAL


TRAFFIC


AND TOLIS.


The president of the American-Hawaiian Line, in testifying before the Senate Committee on Interoceanic


Canals in 1910, spoke as follows:' "We are friendly with them (the railroad traffic manage
rates. I don't know of any other business in the world where competitors don't get together
over. We are not tied up; we are not committed. We do as we please, absolutely untram3
Our traffic manager doesn't attend the conferences of the railroads, but he goes to Chicago
pretty close to the ground. That's his business." In answer to the question, "To-day, as
you frankly admit that you follow more or less what the transcontinental railroads deter


"Certainly," but expressed the view that the water ]
they carry the bulk of the strictly transcontinental
Commission, expressed in the Spokane decision, tha
has been, not perhaps a definite agreement between


'rs).


We discuss:


and talk matters
meled. *
and gets his ear
I understand it,
nine?" he said:


lines would dominate rates after the canal is open and after
traffic.? It is also the opinion of the Interstate Commercn
t "Since the advent of the American-Hawaiian line there
it and the rail lines, but a general understanding that such


rates should be maintained by water as compared with rates by rail as would give to the vessels a reasonable
amount of traffic from the immediate vicinity of New York."
That the intercoastal water lines should now tend to adjust their rates with reference to the established
level of railroad tariffs is in accordance with a general economic law. In any business or industry where the
major share of the business is handled by one group of concerns the smaller individual competitors normally
make their charges with reference to the prices established by the concerns doing the larger share of the business.
More than four-fifths of the transcontinental traffic westbound and eastbound, until 1911, was handled by rail
and less than one-fifth by the water carriers; and it naturally follows that the level of rail rates influences the
charges of the carriers by water.
Though the fact may seem paradoxical, it is not to be inferred from the preceding analysis either that the
railroad rates are not or are not to be influenced by the charges of the water lines, or that there is now or is to
be no effective competition among the intercoastal carriers by water. The transcontinental rail and inter-
coastal water rates are and will be made with reference to each other. There will probably be no fixed percentage,
or general differential, relation between the rail and water charges. Under present conditions the rates via
Panama and Tehuantepec are from 20 to 60 per cent below the transcontinental rail tariffs, and the opening
of the canal will so reduce the costs of transportation by the water lines and will so increase the number of
carriers and the volume of coastwise shipping as to make a still greater difference between the rail and water
rates. The future level of rail tariffs must necessarily be established with reference to the rates charged by
water.
Moreover, while it is to be expected that the competition among the coast-to-coast steamship lines will be


regulated by conferences, formal or inf<
on the part of each steamship company 1
the steamship lines that generally exists
charges that the traffic will bear. For a
will regulate the rates charged by the
the rates will be such as the regulated co
to-coast water carriers should be made
level below which, and with reference to


normal, of the interested lines, there will none the less be an incentive
to increase its tonnage. There will be the regulated competition among
among rival carriers, and rates will thereby be kept below the maximum
, part of the water-borne traffic the cost of shipping by chartered vessels
regular steamship lines, but for most of the traffic shipped by water
competition of the steamship lines or as Government control (if the coast-
subject to the Interstate Commerce Commission) may establish. The
which, the rates charged by the coast-to-coast steamship lines will be


fixed will be the stable tariffs of the transcontinental railroads.


2 Ibid., p. 97.


l Senate Hearings on bill 3428, Feb. 10, 1910, p. 90.


:, ,ill









Ill:






"iM










^l:B


TRAFFIC


AND


TOLLS.


W--PANSICONTINENTAL RATES TO AND FROM INTERIOR POINTS: EFFECT OF WATER COMPETITION.
A. RATES BY RAIL AND WATER TO AND FROM INTERIOR POINTS IN THE EAST AND WEST.


The steamship lines now engaged in the coast-to-coast business obtain a part of their freight from interior
points in the Eastern States for shipment to the Pacific coast. The manifests of cargo show that a small tonnage
is obtained from places as far west as Chicago and St. Louis, and also state that some of the westbound freight
shipped by water is destined to interior points in the western part of the United States. The great bulk of
westbound freight, however, originates at the eastern terminals of the water lines-at New York and points not
far distant therefrom-and is destined to the Pacific coast terminals and to places not far inland. The evidence
secured by the Interstate Commerce Commission in the Spokane and other cases led the commission to state
that "The principal movement by waters from the Atlantic seaboard itself, from New York and from points
having water communication with New York, and from interior territory immediately contiguous. There is a
considerable movement as far inland as Buffalo and Pittsburgh, and an occasional movement from Detroit,
Chicago, and similar points. A movement of starch from Cedar Rapids, Iowa, of considerable proportions was
shown, but generally speaking, up to the present time, comparatively little traffic originating west of the Buffalo-
Pittsburgh zone has reached the Pacific Coast by water."' The present eastbound freight of the steamship
lines, to a larger degree than is true of their westbound tonnage, originates and terminates near the seaboard.
The competition of the intercoastal water lines with the railroads has benefited the sections near the Atlantic
and Pacific seaboards more than the interior section; because, for most shipments to and from interior points
via a combined rail and water route, the through rate is the sum of the rail rate to or from the coast and the rate
by water from coast to coast. There are also transshipment or rehandling charges.
Table XIV, compiled by the division of tariffs of the Interstate Commerce Commission, contains a tabulation
of the rail rates from Philadelphia, Pittsburgh, Cincinnati, Indianapolis, Chicago, St. Louis, Kansas City, St. Paul,
and Omaha to New York on the same commodities as are listed in Table IX, in which the transcontinental coast-
to-coast rates of the railroads and the water lines are quoted. Though the rail rates are not in direct proportion
to distance, the charges between the interior points and the seaboard are greater the farther the inland place of
origin or destination is from New York. For points west of the Pittsburgh-Buffalo zone the rail rates to New
York soon become so high that most goods move directly to the Pacific coast by rail at rates which are usually
the same from all places east of the Missouri River. On some commodities the rail rates to the Pacific are less
from the Central West than from the Eastern States.
The addition of the rail rates from the interior to New York to the intercoastal-if always made in fixing
through rates-would have prevented interior points beyond Pittsburgh and Buffalo from making as many
shipments as have been made via the water lines between the Atlantic and Pacific coasts. Fortunately for the
interior eastern shippers, the coastwise steamship lines sometimes absorb all or a part of the rail rates to and
from the seaboard on westbound shipments.


1 City of Spokane et al v. Northern Pacific Railway Company et al, 21 1. C. C. Reps., 420.


349980-12--6


PANAMA


CANAL


!:E:







I:
KK K










PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE XIV.-STATEMENT SHOWING CLASS AND COMMODITY RATES TO NEW YORK, N.


PHIA,


PITTSBURGH,


CINCINNATI,


INDIANAPOLIS,


CHICAGO,


ST. LOUIS


KANSAS


Y.. FROM PHILADBEr


CITY,


ST. PAUL,


AND


[Rates are in cents per 100 pounds, except


as noted.]


To New York, N.


Classes:


irst ..........


Second.. ..... ... .- .--- -. -- .. . ---" -* - --- "- -
Third...-...-..--.......--------------- ---- ------ -
Fourth .. ....................-............--- ....-.-- .------ -- --
Fifth............. ..... .--. -.........-..........---- -- --- .
Sixth......... ..---- ------ ---------------- --- ----
COMMODITIES.

Harvesters and reapers, k. d..; plows and harrows, k. d.:
Carload.......... .... ..... .... ..---. -... .. ---.------- - ---
Less than carload...--....-.- ... ..... ----- .. ---..--- -..-
Beer:
Carload.......... ...........-- .- ..----- -.......................-
Less than car load............ .. .. ... .. ... --- --- ---..---
Boots and shoes:
Carload .....................-...-- ... .. ------.-------. .


Less than carload ..........


Cement (building):
Carload................... ... --........
Less than carload .....................................
Cereal breakfast foods:
Carload......- ..- .. ..--------.....----.-
Less than carload .............. ........
Chinaware (value, $20 per hundredweight):
Carload....................-------..--...
Less than carload-........ .............


Cotton underwear:
Carloadc............
Less than carload..
Green coffee:
Carload............
Less than carload..
Roasted coffee:


Carload . .... .. . ...


Less than carload....................... ----. --... .... .........
Crackers:
Carload ... ............. ...........------.. ..
Less than carload .................................--.......-.
Creamery and cheese factory machinery:
Carload...-...... ...........................--- ..- ..-..- ...


From-
I ~Prom--


Philadel-
phia, Pa.


Pitts-
burgh, Pa.


Cincin-
nati, Ohio.


Indianap-
olis, Ind.


Chicgo,
I75.



75


St. Louis,
Mo.


Kansas
City, Mo.



1471
121
93j
67
57


------------------------------------. .. .. ..


Omaha,
Nebr.


I


xxx


St. Paul,
Minn.



135
115
90

& i
60

50





50
95


47
90



135



37
60


25
60


85

126



135



50
65


50

65


60
115


55
1.1.


14j


113

67












16
147




Wl



67

















67



571
52


67

121
5

72


(









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLs XIV.-STATEMENT SHOWING CLASS AND COMMODITY RATES TO NEW YORK, N


Y., FROM PHILADEL-


PHIA,


PITTSBURGH,


CINCINNATI,


INDIANAPOLIS,


CHICAGO,


ST. LOUIS,


KANSAS


CITY,


ST. PAUL,


AND


OMAHA--Continued.


[Rates are in cents per 100 pounds, except as noted.]


To New York, N.Y.


oxMMODnITES-contilned.
Trolley wire (copper):
Carload........................................................
ees than carload..............................................
Cane-seated chairs (boxed):
arload............ .......... .... ..... .... ................. .....
ess than carload ..............................................
Common window glass:
Carload ..................... .....................................
Less than carload .............................................
Mechanics' tools (boxed):

ess than arload .. ................. ............................

Harness and saddlery:
Carload.........................................................


Less than carload..


Girders, bars and plates, No. 11 or heavier:
Carload. ...... ...........................
Lesa than carload ...........................


Steel rails:


Carlead...........
Less than carload.


Iron and steel blooms, billets, and ingots:


Carload -.... ...
Less than carload


Patea and sheet (boiler) Nos. 11 to 16:


Less than carload


Pipe and fittings:


Car load .... .... ................... ..................... .......
Less than *a.load ............... ....-.... ...--...--..... ..... ...


Whisky (in wood):
Carload ..........
Iess than carload


Condensed milk:
Carload .....
Less than car
Nails and spikes:


load ..............................................*


rlsload .---- ...- .
Less than carload .


O(ilaill snmdin-


From-


Philadel-
phia, Pa.


Pitts-
burgh, Pa.




21
30


39
67S


18
24


21
30



45



16
19


300
19


260
19


16
19


16
19


21
33


21
30


16
19


Cincin-
nati, Ohio.


olis, Ind.


Chicago,
IU.


St. Louis,
Mo.


- 35


Kansas
City, Mo.


St. Paul,
Minn.


Omaha,
Nebr.


* 110


1I I I I I


"" ::,,


i


I 1









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE XIV.-STATEMENT SHOWING CLASS AND COMMODITY RATES TO NEW YORK, N.


PHIA,


PITTSBURGH


CINCINNATI


OMAHA-Continued.


, INDIANAPOLIS,


CHICAGO,


ST. LOUIS,


KANSAS


Y., FROM PHIMAD


CITY,


ST. PAUL, ANS


[Rates are in cents per 100 pounds, except as noted.]


To New York, N. Y.


coMMonDES-continued,
Paints (dry) in wood:


Carload ...


Less than carload


Paints (oil):


Carload ........................................................
Less than carload .................................................
Building paper:
Carload .................. ..... ...... ...... ... .. ..............
Less than carload ..............................................
Paraffine wax, carload .............................................


Paraffine wax (in wood), less than carload
Pickles, carload ..........................


Pickles (in wood), less than carload .. ..... ........................
Sewing machines, boxed or crated:
Carload ........................................................
Less than carload .................................. ...........
Soap:
Carload ............................ ......... ...............
Less than carload ...............-.---....................
Stamped ware, carload ...1......................


Stamped ware (nested solid), less than carload


Stoves (cooking and heating):
Carload ...................................... ................
Less than carload ...............................................
Tin plate:
Carload ............-...-................---.-..............
Less than carload ..........................................
Tin, sheet:
Carload ....................................................
Less than carload .........................................
Tobacco, unmanufactured, in hogsheads, barrels, or cases:
Carload ........................................................
Less than carload ...........................................
Malt extract, carload .......... ..................................
Malt extract (in wood), less than carload .........................


From-


Philadel-
phia, Pa.


Pitts-
burgh, Pa.





18
30


18
30


18
24


-'t
18
30
18
30


30
465


18
24
21
33


18
30


18
21


21
30



21

21
39


Cincin-
nati, Ohio.





26
43j


26
431


Mf


Chicago,
1l.


St. Louis,
Mo.


Kansas
City, Mo.


Indianap-
olis, Ind.


Omaa,
NeR-- t .**


Tariff authority:
Class rates.-Philadelphia to New


C., C., C. & St. L. By., I. C. C.
Omaha to New York, C., C., C.


York, P. R. R.,


G. O., I. C. C.


Pittsburgh to New York, P. R. R.,


G. 0., I. C.


St. Louis to New York, Cameron's I. C. C. D-62; Indianapolis to New York, C., C.


& St. L., I. C. C. 5893, Cameron's I. C. C. D-62, and Hosmer's


I. C. C. A-243;


C. 3107; Chicago and Cincinnati to New York,
., C. & St. L., I. C. C. S893; Kansas City and


and St. Paul to New York, Hosmer's I. C. C. A-244 and


C., C, C. & St. L., I. C. C. 5893.
/lwnranmtief ntotn ..2'V Tw Vnrlr fim PPihrfalnhMn P f fl (1 1 T 7 p p tQ 7oA anrA CSoOA.. twnn Pi4ohmiFwa P 1)D (D fl Tr 0r r t t ane fl 0 flW 1


:'*"""""'**' '***'

::: :
/3.


* * * -


St. Paul,
Minn.





47
75


50
75


30
80
47j
90
47




90
135


50
65
60
90


50
90


50
60


55
75



60



125








PANAMA


CANAL


TRAFFIC


AND TOLLS.


The Panama Railroad Steamship Line, which makes the westbound rates applying over its line and Pacific


coast connections, deals as follows with charges from interior eastern points.
coast points the following "minimum rates" apply:


East San Pedro, Cal. .....
Los Angeles, Cal.......
Oakland, Cal ...........
Portland, Oreg ........
Sacramento, Cal..........
San Francisco .............
Stockton, Cal- ..-.......
all other Pacific coast ports.


The tariff then provides that, except in case of spe
exceed the above minima, the water rates quoted "may
20 cents higher than the minimum, the Panama Rail R
New York pier not exceeding 20 cents per 100 pounds,
lading as 'advance charges' to be paid by shippers or
not at least 20 cents higher than the minimum, the Pa]
the minimum and said rate." For example, Table XIf
knocked down, from Philadelphia to New York is 10j ce


From its New York pier to Pacific


Per 100 pounds.
................. 50
... .... ......... 55
50
................. .52
................. .55
...... ..... ...... 0.5
S .55
. . 60


cial rates from New York pier or of rates which do not
r apply from interior points, and when a rate is at least
oad Co. will assume the charges from shipping point to
any excess over this absorption to be shown on bill of
consignees as the case may be. When a freight rate is
aama Rail Road Co. will assume the difference between
r shows that the carload rate on harvesters and reapers,
rnts, which is absorbed by the steamship line; because the


water rate on harvesters and reapers from New York pier is 88 cents, or more than 20 cents above the theoretical
minimum charge of 50 cents on any commodity from New York to San Francisco. So also is the 18-cent rate
from Pittsburgh absorbed; but the Cincinnati rate of 26 cents is absorbed ohly to the extent of 20 cents, the
shipper or consignee being obliged to pay the excess. The 28-cent Indianapolis rate is absorbed only to the
amount of 20 cents, and the same is true of the 30-cent Chicago rate, etc. When the water rate on the com-
modity in question does not exceed the theoretical minimum water rate by 20 cents, the Panama Rail Road
Co. absorbs the rail rate only to the extent of the excess of the actual water rate over the minimum water rate,
and if the actual rate is only equal to, or is less than, the minimum, the shipper or consignee is obliged to pay
the entire rail charge from the inland point to New York.
The policy of the American-Hawaiian Steamship Co. is to "make its rates from the terminals." 1 It does
not absorb any of the rail rates to New York; but as the rates of this company are not published it is probable
that traffic of large shippers from interior points is solicited at such rates from New York to the Pacific coast as
to allow the inland shippers to pay the rail charges to New York and yet enjoy a favorable through rail-and-water
rate.
At the Pacific destination of westbound traffic the Panama Line and connections absorb the rates to certain
points not on the coast. The tariffs apply alike to the following points: San Francisco, Sacramento, Stockton,
Oakland, Berkeley, Los Angeles, San Diego, Santa Barbara, San Pedro, Redondo, Vancouver, Portland, Astoria,
Seattle, Tacoma, Port Townsend, Everett, Anacortes, New Whatcom, and Victoria. As is shown above, differ-
pnt minima water rates prevail from the Atlantic seaboard to these points on or near the Pacific coast; but upon
any particular commodity the same actual rates are quoted from New York to all the above-named Pacific
destinations. The actual rate on any given article shipped from an interior point near the Atlantic via New
York to any one of the Pacific destinations will depend both upon the amount of rail charge from the interior
point to the Atlantic seaboard absorbed by the steamship lines and also upon the minimum water rate from
New York to the Pacific destination. The minimum bill of lading for single shipments, likewise, varies from
$1 to $1.50. The American-Hawaiian Line does not absorb the rail rates from the Pacific coast terminals to
any interior destinations.
Table XV states the rail rates, on the same list of articles as is included in the former tables of westbound
rates, from San Francisco to Sacramento, Stockton, Fresno, Reno, Salt Lake City, and Denver. Since no
interior rates beyond Sacramento and Stockton are absorbed by any line. most of the traffic that reaches the west


:jj:

IEEE










PANAMA


CANAL


TRAFFIC


AND


TOLLS.


The Sunset-Gulf Line from New York to the Pacific coast takes traffic from interior eastern points via New
York and New Orleans or Galveston at through rates equal to the all-rail rate from the interior eastern points


to the Pacific coast.


It thus absorbs the rail rate to New York in that the rate is paid out of the through charge


The Sunset-Gulf route, however, is to be classed with the transcontinental rail lines, and not with the inter-
coastal water lines-because its rates are the same as those by the all-rail carriers.

TABLE XV.-STATEMENT SHOWING CLASS AND COMMODITY RATES FROM SAN FRANCISCO TO SACRAMENTO,


STOCKTON


, FRESNO, RENO,


SALT LAKE CITY, AND DENVER.


[Quoted by Division of Tariffs, I. C. C.


Rates are in cents per 100 pounds except


as noted.]


From San Francisco.


Classes.


Second .................... ...... .... .......................................................



uT1hth.........................f.......1..f..........1'f.f.. ....
it C .......................................................................................


Harvesters and reapers:
Carload ......... ......
Less than carload..
Plows and harrows:
Carload...........
Less than carload..
Beer:
Carload..........
Less than carload..
Malt extract, carload...


Malt extract (in barrels)
Boots and shoes:
Carload............
Less than carload..
Cement (building):
Carload............
Less than carload..
Cereal breakfast foods:
Carload............
Less than carload.
Chinaware (val. $20 per
Carload ............
Less than carload. -


COMMODITIES.


* . . * * .


To--


Sacramen-
to, Cal.



24
21
18
16
13
13
13
11
9j




13
18


,less than carload.....................................................





i





.w t.-:, ls h c l .. . . .. . . . . .. . . . . . . . _


cwt.):


Stockton, Fresno,
Cal. Cal.


Salt Lake
City, Utah.


Denver,
Ctdo


:i M


4











PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TABLE X.--TATEMENT SHOWING CLASS AND COMMODITY RATES FROM SAN FRANCISCO TO SACRAMENTO,
STOCKTON, FRESNO, RENO, SALT LAKE CITY, AND DENVER-Continued.


From San Francisco.


COMMODrITES-continued.
Green offee:
Carload .....................................................................................
Less than carload ... ... .............................................................................
Roasted coffee:

Lss than carload....... ....................................................................

Crackers:
Carload ....................................................................................
Less than carload.. .........................................................................
reamery and ch eese factory machinery:
Carload ...................................................................................
Less than carload ............................................................................
Cotton sheets and sheeting (cotton piece goods):
Carload .................................................................................
Less than carload ...........................................................................
Stoneware and crockery, carload ....................................... .......................
Stoneware and crockery (in hogsheads), less than carload....... ................................
Trolley wire (copper):
Carload......................................................
Less than carload ....... ........ ............................................................
Caneseate chairs, carload .... .... .... .... .... .... .... .......................................
Cae-seatedi chairs (boxed), less than carload.............. ....................................
Window glass, common:
Carload ...... ........................................................................
Less than carload .................................. ......................................
Mechanics tools (boxed):
Carload. ...................,...................................................
Less than carload- .......................................................................
Harness and saddlery:
Carload...................................................................

Less than carload ...........................................................................
Steel rails:
Carload..................................................................................
Less than carload .......................................................................
Girders, bars, and plates, No. 11 or heavier:
Carload..................-...... .. ....................................................
Less than carload...........................................................................

Iron and steel blooms and billets:
Carload ......... ...................... ...........................................
Less than carload .. .. .-----..------. .-..-. ......... ........................


Sacramen-
to, Cal.




13
16


13
16


16
21


13
21


24
24
13
16


16
21
18
24


13
16



24




24


Stockton,
Cal.




7
9


7
9


9
10


7
10


10
10
9
1120


9
10
9
10


7
9



10




10



7
9


7
9


1110
9


Fresno,
Cal.


Salt Lake
City, Utah.




791
96


791
96


96
S131


79j
131


154
154
62
96


96
131
70
154


70
96



154




154



a 1,025
96


62

96


46
96


Denver,
Colo.




75
120


75
120


175
260


150
260


110
160
85
150


175
260
200
300


125
175



300




300



160
175


160
175


85
175


... ... .. ... ..


I


I I











PANAMA


CANAL


TRAFFIC


AND TOLLS.


TABLE XV.-STATEMENT SHOWING CLASS AND COMMODITY RATES FROM


SAN FRANCISCO TO SACRAMENTO,


STOCKTON, FRESNO, RENO, SALT LAKE CITY, AND DENVER-Continued.


From Ban Francisco.


Pipe and fittings:


cOMM ODITIES-continued.


Carload......


Less than carload ...... ............ .............. .............................................

Whisky (in wood):
Carload .....................................................................................
Less than carload ....... ...................................................................
Condensed milk:


Carload ...........
Less than carload.


Nails, spikes, and wire:


Carload ............ ............. ..........................................................
Less than carload .........................................................................
Ol well supplies, carload .... ..................................................................
Oil well supplies n. o. s., less than carload................................... ................. ..
Paints (in oil):
Carload .....................................................................................
Less than carload.........................................................................
Building paper:
Carload ..................................
Less than carload ................... ................................... .............. ....
Paraffine wax:
Carload....................................................................................
Less than carload ........................................................................
Pickles (in wood):
Carload ... ..... ..... .... ................................................................


Less than carload .......


Sewing machines (boxed or crated):
Carload ... ............................................................. ......
Less than carload ......................................... ..... ..............
Soap:
Carload....... ............................... ........... ............. ..........
Less than carload.. .................... ... ...................... ............
Stamped ware, carload ..............................................................
Stamped ware (nested solid), less than carload ......................... ............
Stoves (cooking and heating):
Carload............................................... .... ........... .


Less than carload.
Tin plates and sheets:
Carload ......


- -gy M @ # W M M w ~ e ~ w m m a m e w m s ~ ~ m e m e m W m a m


Sacramen-
to, Cal.


Stockton,
Cal.


Fresno,
Cal.


1720


S720


1720


* 504


Salt Lake
City, Utah.



1S55
860

96


100l
131


Denver,
Colo.


!~ ?B
S10
1100
I7S


Lessthan carload ........................................................................... 16 9 44 5 96 175


"" :EEE










PANAMA


CANAL


TRAFFIC


AND


TOLLS.
/


TAwa XS --STATEMENT


SHOWING CLASS AND COMMODITY RATES FROM
WALLA, BUTTE, AND HELENA.


SEATTLE


TO SPOKANE,


WALLA


[Quoted by Division of Tariffs, I. C. C.


Rates are in cents per 100 pounds, except as noted.]


From Seattle, Wash.


Cases:
First.........
Second......
Third-.......
Fourth...----


Spokane, Wash.


.... - ,-- -I


- -. - ,. .- . . -.-
* .- - - -**


4A0 - .- .- - .-.-.-. ..--* -- ..----- -.





COMMODITIES.

Harvesters and reapers, plows and harrows........................-- ..........---.......

BeeMaltrext.t............-............................... .......................


Boots and sihoies..........................................................-............
Cement (buildinig).... ................................................................
cere breakfast foods.......................................................-..........
Chinaware, value $20 per hundredweight... V......................................
Cotton erear.............................................

Green coftee ..........................................................................
oastn chee ...n -........-..............................------...--.------------.....
C ar ae ... -........- .. ...................................-........-- .....------.
Creaer and eese fa y aciery... ............................................
Cotton sheets andi sheetings...........................................................
S tCommon window gler ..............................................................
mechanics' tools (oxed) .... ..........................--..........--....................
Caneass aid s(L .l., x...d).....................................................



Steelrails.. gass............................................... ...................
]gechancs' tools (boxed) .............................................................




Girders, bars, and plates, No. 11 or hear ............................................
Iron and steel blooms and billets..--.............. ........................................
Boiler plate and sheet, No. 11 to 16 ...................................................

Pipe and fittings......................................................................
Whisky................... ................ ... ..... .................
Condensed milk............. .........................................................
Nails, spikes, and wid tre-.............vi i -.... -..-......-..-.............
Oil-well supplies (I.e. ,., no.s.)..........................
Paints....... ...- .................................. .......-....--..--.


L.c.I.
95
95
135
135
80
80
135
135
80
80
120
120
135
80
120
135
80
135
135
80
80
80
80
80
120
80
80
135
80


Walla Walla, Wash.


C.I,
52
35
35
109

20
25
52
109
52
52
65
52
109
35
65
60
52
109
109
50
52
26
52
52
91
52
52
52
40


L.c.1.
77
77
109
109
65
65
109
109
65
65
91
91
109
65
91
109
65
109
109
65
65
65
65
65
91
65
65
109
65


Butte, Mont.


L.C.I.
126
126
180
180
108
108
180
180
108
108
153
153
180
108
153
180
108
180
180
108
108
108
108
108
153
108
108
180
108


Helena, Mont.


L.e.l.
126
126
180
180
108
108
180
180
108
108
153
153
180
108
153
180
108
180
180
108
108
108
108
108
153
108
108
180
108


.!M
.:' -









PANAMA


CANAL


TRAFFIC


AND


TOLLS.


TAna XVI.-STATEMENT SHOWING CLASS AND COMMODITY RATES FROM SEATTLE TO SPOKANE,
WALLA, BUTTE, AND HELENA-Continued.


WALLA


From Seattle, Wash.


COMMODITES--continued.


Sewing machines (boxed or crated).. ....


Soapm.p.. ,r ..........
Stamped ware..........


Stoves (cooking and heating)......
Tin plates and sheets ................
Tobacco (unmanufactured)..........


Spokane, Wash.


L. c. I.
135
80
95
95
80
80


WallaWalla, Wash.

C.L c. I.
77 109
52 65
65 77
52 77
52 65
65 65


Butte, Mont.


L. c. .
180
108
126
126
108
108


Helena, Mont.


L.c. .
180
lS



108
10,lS
10B


Authority: From Seattle to Spokane and Walla Walla, per


N. P. Ry, I. C. C. 4805; to Butte and Helena, per N. P. Ry., I C. 4961.


B.-EFFECT OF WATER COMPETITION ON BATES TO AND FAOM INTERIOR POINTS.

Neither the trunk line nor the transcontinental railways have favored the shipment of commodities from


the Middle West to the Atlantic seaboard for carriage thence by water to the Pacific coast.


The policy of the


railways, generally, under the leadership of the western lines, has been to hold to the all-rail lines the traffic
to the Pacific coast both from the Atlantic seaboard and from interior points.
The rivalry of the railways from the Central West to the Atlantic with those from the Central West to the


Pacific


, and the industrial competition of the Mississippi Valley with the Eastern States, which can ship to the


Pacific coast by water lines, brought about the system of blanket rates for most of the traffic to the west coast
from the entire section east of the Missouri. The competition of the rail and water lines at the Atlantic seaboard
controlled transcontinental rail rates from the Eastern States, and the railroads and the industries of the Middle
West insisted upon reaching the Pacific coast on equal terms with the railroads and industries of the eastern


section.


Upon some articles the rates from the Central West are lower than from the Atlantic seaboard, there


being some grading downward of rates by successive lettered rate groups westward from the Atlantic coast.
The policy of the carriers interested in the transcontinental rail traffic from the East and from the Middle
West, and the influence upon rail rates exercised by the intercoastal water lines is concisely explained by the


Interstate Commerce Commission in the decision in the Spokane case.


The commission, speaking through


Mr. Prouty, says: 1
Carriers maintain the same transcontinental rate from Chicago as from New York, not by reason of the direct effect, but rather as an


indirect result of water competition.


The reason for this will be best understood by an actual illustration.


Assume that a building


requiring the use of a large amount of structural steel is to be erected in San Francisco.


and in Chicago.


That steel is manufactured both at the seaboard


That which is made at the seaboard can be taken by water from the point of origin to the point of destination, and the


rate at which it can move is therefore determined by water competition.


The cost of producing steel is the same at both points.


In order, therefore, that the producers may stand an equal chance in com-


peting for this business it is necessary that the rate from both points should be the same, and the business can not move from Chicago unless


the rate from that point is as low as from the seaboard.
The Atchison, Topeka & Santa Fe Railway begins at Chicago.


If this steel is bought at Chicago and moves by that line, the entire


freight money is retained by it; if, upon the other hand, the steel is bought at New York, moved by some line to Chicago, and there de-


livered to the Santa Fe, that line receives only a part of the through charge. Th
the amount of its compensation is larger when the freight originates at Chicago.


e service performed by it is the same in either case, but
It is therefore for the interest of that line to name a rate


from Chicago which will originate the business at that point instead of allowing it to originate upon the seaboard.


The interest of the line


from New York to Chicago is that the business should be taken up at New York, and as a compromise it is finally agreed to apply the same
rate from both these points. This clearly shows how water competition, if it does not actually extend to the interior point, may and does
dictate the rate from that point.
What would be true of the steel entering into the construction of this building is true also of almost every article of commerce which


moves between the East and the West.


The Middle West to-day manufactures nearly everything which is produced upon the Atlantic


~~ IllllPIIE~







PANAMA


CANAL


TRAFFIC


AND TOLLS.


shipment thence by water to the west coast has been relatively small, but the actual or possible shipment of a
relatively large volume of commodities by water from the Atlantic coast has controlled the rail rate from the
Central West to the Pacific. Water competition has exercised less influence upon eastbound rail rates from the
western section to the Middle West and the East, but even on eastbound traffic most rates are blanketed over
the entire region east of the Missouri River. There is more grading by distance of eastbound than of westbound
rates, but the difference between the eastbound and westbound transcontinental rate systems is one of degree,
not of kind or of principle.
Such has been the past effect of intercoastal water transportation upon the rates of the transcontinental
all-rail lines. There remains for consideration the influence that the Panama Canal may be expected to exercise
upon the rates and rate policies of the transcontinental railroads.
V.---PROBABLE ADJUSTMENT OF TRANSCONTINENTAL RAIL RATES RESULTING FROM CANAL COMPETITION.
The railroad rate system that has been worked out by the transcontinental railroads is a complicated struc-
ture that has been evolved slowly. It is the resultant of the interaction of numerous forces, of the competition
of rival sections, of rival industries, and of rival carriers. As these forces of competition change, from time to
time, the rate system is modified in detail to keep transportation charges adjusted as closely as practicable to
economic conditions. The opening of the Panama Canal will so greatly change the industrial relations of
different sections of the United States and the competition of the transcontinental railroads and the intercoastal
water lines as inevitably to require many changes in the present system of transcontinental rates.
Just what rate policies the railroads will adopt to meet the situation created by the Panama Canal can not
be predicted in advance of experience. The railroad companies will solve the problems as they arise and will
cross no bridge until it is reached. It is possible, however, to indicate the rate problems which the canal will
probably create and to point out the possible policies open to the railroads. Such an analysis of the probable
effect of the canal upon transcontinental railroad rates may, moreover, enable the Panama tolls to be fixed with
a clearer understanding of their effects.
1. The railroad rates most completely subject to the competition of the intercoastal lines using the canal
will be tliose westbound to the Pacific coast from the section of the United States between the Buffalo-Pittsburgh
district and the Atlantic seaboard. Even under present conditions, the transcontinental rail rates between the
two seaboards are largely affected by the competition of the routes via the Isthmuses of Panama and Tehuantepec,
and it is estimated that one-half of the traffic carried from this eastern section of the United States to the Pacific
coast now moves by the water routes. Is it probable that the railroads will endeavor to meet the rates of the
intercoastal water lines with the view to holding to the all-rail routes the traffic between the two seaboards ?
It is hardly to be expected, for the following reasons, that the railroads will make a desperate effort to hold this
traffic against the water lines.
In the first place, the tonnage involved constitutes, at the present time, a comparatively small percentage-
only 20 to 22 per cent--of the total traffic carried to the Pacific coast by the transcontinental roads-those


running from Chicago to the west coast. Only 35 per cent of the
this eastern section and in the Buffalo-Pittsburgh territory. In
through traffic of the transcontinental lines now comes from the Ce
In the second place, the system of blanketing rates from the
River-a system that will probably prevail-will carry through


through busin
other words,
ntral West.
Atlantic seabc
to the Missou


ess of these lines originates in
more than two-thirds of the

)ard westward to the Missouri
rri River any rate reductions


which the railroad lines may make on traffic from coast to coast, and it is hardly to be expected that the rail-
roads will reduce rates unnecessarily upon two-thirds to four-fifths of their traffic in order to compete more
successfully for the remaining minor portion of their possible tonnage. It will be more profitable for the trans-
continental rail lines to lose the major portion of their traffic from the Atlantic seaboard section in order to
maintain paying rates on the westbound traffic from the middle section of the United States.
In the third place, it is probable that the eastern trunk lines as well as the Pacific lines originating at Chicago
and canntrlatestern noints will be onnosed to the nolicv of reducing coast-to-coast all-rail rates to the lowest








PANAMA


through the canal, with the cooperation of


CANAL TRAFFIC AND TOL .

the Pacific coast jobbers, wil endeavor to supply the cities within a


thousand miles of the Pacific coast with supplies handled by way of the canal and the Pacific gateways. Up to


the present time, the railroads interested in transcontinental traffic have adhered to the policy of chasing
higher rates to intermediate points in the mountain States than to Pacific coast terminals and have thus assisted
in maintaining the Pacific coast cities as the jobbing centers from which many of the supplies required by the
mountain States are obtained.
After the canal is opened the railroads will be obliged to decide whether it is wiser to continue to favor
the Pacific coast jobbing trade, or, by reduction of rates from the east to the intermountain cities, to cause those


cities to secure their supplies directly from the east and not by way of the Pacific.


While it is impossible to


predict which of these two policies will be deemed wiser, it would seem a priori that the railroads will prefer
to supply the intermountain States directly from the eastern sources of supply.


3.


The principal eastern termini of the transcontinental railroads are St. Paul, Duluth, Chicago, St. Louis,


Kansas City, and Omaha, and these railroads are concerned first of all with the effect which the Panama Canal


may have upon the westbound rates from the central section of the country.


The rates to the Pacific coast


from Chicago and other points as far east as that city, after the opening of the Panama Canal, must meet the


through rates by rail-and-water lines via Atlantic and Gulf ports.


It is the expectation of the trunk lines that


they will be able to divert to the Atlantic seaports transcontinental traffic originating at points as far west as


Cleveland and Indianapolis.


It will also probably be possible for the railroads to the Gulf to attract some west-


bound transcontinental traffic to Gulf ports from points as far north


as St. Louis.


This indicates that the tram-


continental lines must reckon with the canal route in making rates from the eastern and southern parts of the
Mississippr Valley to the Pacific coast.
4. At the present time the transcontinental railroads have a relatively large and a highly profitable trarfli


from the Central West to intermediate points in the mountain States.


The rates generally being the same from


the Middle West as from the Atlantic seaboard to the States in the intermountain section of the far West, the
manufacturers and other producers of the Middle West have secured most of the trade of the mountain States.
Formerly traffic moved from the Atlantic seaboard around to the Pacific coast and from there inland to the


intermountain States.


Now it moves mainly by direct rail haul from the Middle West.


With the opening of


the Panama Canal, an effort will doubtless be made by eastern producers to regain a greater or less portion of
the trade of the intermountain States by shipping commodities at low rates through the canal to the Pacific


coast for distribution


thence


through the intermountain States.


The Pacific coast jobbers interested in this


trade will be able to secure commodities either from eastern producers by way of the canal or from Middle West


producers by way of the railroads.


It has thus far been deemed profitable by the transcontinental lines to


make through rates to the Pacific coast much lower than to intermediate points and thus favor the jobbing
trade of the Pacific coast. This policy has been justified by the fact that the low through rates were, at least,
slightly profitable, and that the distribution of traffic by rail from the Pacific coast through the mountains at


high local rates was highly profit
to the Pacific coast to be so low


able.


It seems probable that the Panama Canal will cause the through rates


as to make it more profitable for the railroads to carry traffic from the Middle


West directly to intermediate points than to haul it to the Pacific coast for subsequent distribution.


This view


has been expressed in the following words by the traffic manager of one of the transcontinental railroads:
The railroads have maintained normal rates to these interior points and have resisted the natural demand for rates insuring direct move-
ment of these commodities from eastern sources of supply, because they knew that they were carrying 85 per cent of the tonnage to Pacific


coast terminals, and for that


reason


revenue


on eastern manufactured goods shipped from Seattle to Walla Walla, Spokane, etc.,


was not measured by the rate charged for that final movement of the traffic, and so far


as the competition of water-borne commodities,


including imported merchandise,
Seattle to these interior points.


was concerned, there


was consolation in the fact that


we were getting


a comparatively high rate from


But we should


ask ourselves, what would have been the adjustment of rates to interior points in the absence of these compensating


conditions?


If the town of Walla Walla


uses 10,000 kegs of nails per annum, it is the duty of the railroad traffic manager to make that


business contribute as much as possible to the


earnings


of his railroad.


Heretofore we have not worried when


we saw these nails coming


in from Portland or Seattle, for the reasons above stated, but when we stop carry


ing the original shipments to Seattle, and when the


*^




r~E"IES~P'HII


E ..i..
-*"


CANAL


TRAFFIC


AND


TOLLS.


Br. The probable effect of the canal upon eastbound transcontinental rail rates may be briefly considered,
because much of the preceding analysis of the relation of the canal to westbound rates is applicable to eastbound
.charges. The tonnage carried by rail from the Pacific coast through to the Atlantic section east of Pittsburgh
and Buffalo is relatively light and consists, in large part, of perishable freight, of which green fruits constitute
an important item. It is possible that the steamship lines through the canal will handle some of the green fruits
from the west coast to the eastern markets, but in all probability the present methods of shipping and marketing
fruit will prevail, and the traffic, in spite of somewhat higher rates, will continue to move mainly by rail. The
principal markets for all the products of the west coast are in the Rocky Mountain section and the Mississippi


Valley, and the transcontinental railroads will be concerned chiefly in maintaining eastbound rates from the
west coast to those sections and will hardly decide to reduce rates on traffic destined to points throughout the
eastern half of the United States in order to hold against the steamship lines a portion of the comparatively
small tonnage which the railroads haul through from the Pacific to the Atlantic seaboard section.
6. The rates on fruits, barley, fish, lumber, and other west coast products to the Mountain States and to
the Mississippi Valley are of prime importance to the transcontinental railroads. The traffic taken from the


west oast by rail to the southern and eastern portions of the Mississippi Valley must be secured in comp
with the combined water and rail routes by way of Panama and the Gulf or Atlantic ports, but for the
share of the eastbound traffic from the Pacific coast over the mountains the railroads will not be set
affected by canal competition.
7. The traffic from the mines and ranches of the intermoimtain States eastbound to the Atlantic
section comprises a comparatively small tonnage. The rail rates on wool and some other products will
the opening of the canal, necessarily be influenced by the through rate by rail to the Pacific coast and
steamship lines through the canal. It is not probable, however, that much traffic will move from poin
of the Sierra Nevadas to the Pacific coast for transshipment eastbound through the canal.
8. The principal markets for the productions of the Rocky Mountain States are in the Mississippi'
It will not be possible for the canal to divert from the railroads the traffic from the western Mountain
to destinations west of Buffalo and Pittsburgh, nor will the canal have much effect upon the rates whi
railroads may charge for this traffic.
9. The general effect of the canal will be to lower transcontinental railroad rates. If the for


petition
major
riously


coast
[, after
on by
ts east

Valley.
States
ch the


going


analysis proves to be sound, it will be the policy of the railroads to allow a portion of the traffic that might be
held to the rails to be shipped coastwise through the canal and to maintain rates upon the traffic which can
readily be prevented from taking the canal route. It is probable that the railroads will adopt the general
policy of surrendering without serious struggle the minor portion of their traffic in order to maintain profitable
charges upon the major share of their tonnage. The immediate effect of the canal will be to lessen railroad
profits; the ultimate effect may be the enhancement of the prosperity of the railroads. The canal will aid the
industries and trade of the United States. Like other transportation facilities, it will create the need of other
means of transportation; and, should the transcontinental railroads be obliged to face reduced profits for a
period of years, they need have no serious apprehension as to their future prosperity. The railroads connecting
the Mississippi Valley and the Pacific coast are among the most profitable lines in the United States. The
country they serve is certain to have a large development during the next quarter century, a development that
will unquestionably be appreciably aided by the Panama Canal.


VI. SUMMARY OF THE PROBABLE EFFECTS OF THE PANAMA
RATES.


CANAL UPON TRANSCONTINENTAL


TRAFFIC AND


The probable influence of the Panama Canal upon the trade of the eastern and of the central sections of
the United States with the western part of the country, and the anticipated effects of the canal upon the car-
riers interested in that trade may be broadly summarized as follows:
1. The Atlantic section of the United States will obtain a somewhat larger share of the trade of the Pacific
coast, and will secure more benefit from the cheap water route than will the Middle West.
9 'Pb s- ^t^~ ~ k- j~ .A I-..ibAA f ni1n+ r cA1 .n~rni r i


PANAMA







IA CANAL TRAFFIC AND TOLLS.
b ii;


part but not all of the trade of the Pacific coast seaboard cities, but may I
trade of the cities in the intermountain States; (c) the trunk lines to the
producers just west of the Alleghenies by making low through rates from ]
Indianapolis to the Pacific via the Atlantic ports and the canal. The rail
trade from Memphis and St. Louis and possibly Kansas City to the Gulf


>e expected to hold nearly all of the
Atlantic seaboard will doubtless aid
places as far west as Cleveland and
lines to the Gulf likewise will draw
for shipment through the canal to


the Pacific coast; (d) the transcontinental rail lines running west from St. Paul, Chicago, St. Louis, and the
cities on the Missouri River may be expected to assist in building up the direct trade from the Mississippi and
Missouri Valleys to the cities in the intermountain States, and thus to limit the entry of goods from the eastern
part of the United States via the Pacific coast into the inland markets of the intermountain States.
The intermountain States will probably secure lower freight rates for their trade with the eastern see-
tion of the country and with the Middle West. Instead of cutting deeply into the rates between the eastern
part of the United States and the Pacific coast terminals, and thereby, under the ruling of the Interstate Com-
merce Commission in the Spokane and Reno cases, automatically depressing all rates to intermediate points,
the railroads will more probably decide to maintain fairly remunerative through rates to the west coast, to
suffer the major share of the coast-to-coast traffic to be supplied by eastern producers and to be carried
through the canal, and to make only such reductions in the rates to and from the intermountain territory as
may be required to cause that section to continue to trade mainly with the Middle West. The policy of the
railroads will probably be to make it advantageous for the intermountain cities to trade less through Pacific
coast jobbers and more, without the intervention of middlemen, directly with the central and eastern sections
of the country.
3. The canal will assist the Pacific Coast States in trading with the eastern and southern parts of the
United States. Much trade not now possible will develop. The importance of the west coast cities as job-
bing centers may be lessened by the growth of direct trade between the intermountain States and the sections
east of the mountains, but this loss will be more than compensated for by the growth of new trade.
4. The effects of the canal upon American trade and upon rail rates will not be much affected by the exemp-
tion of coastwise ships from the payment of Panama tolls. If the nonpayment of tolls were to reduce freight
rates by the amount of tolls, the freight rates-which will be from $6 to $20 a ton-might possibly be 60 cents
a ton lower. That would be of some assistance to the Pacific coast jobbers and large shippers, and would some-
what increase the advantage which the canal will give the East over the Middle West in trading with the west
coast.
It is not probable, however, that the exemption of the payment of tolls will appreciably affect the rates


charged by the regular steamship lines. The nonpayment or remission
the coastwise marine and not the shippers. Most traffic will be handled
common rates fixed in conference, and competition, while not eliminated,
carriers to keep charges well above the lowest rates at which traffic can t
be tolls or no tolls, the line steamship rates will not be based on cost of
will bear and increase. Canal tolls, being a part of the cost of service, will
nor will the omission of tolls cause the freight rates to be lower. This is
cargoes of traffic handled in individual vessels operated under charters. (
few large shippers who can use a chartered vessel will be benefited by b
tolls. As is explained in Chapter XII, it is probable that the payment o


of tolls will chiefly aid the owners of
by the regular lines which will charge
,will be so regulated as to enable the
profitably be carried. Whether there
service, but will be such as the traffic
not make line steamship rates higher,
not true of the rates payable on bulk
Charter rates are competitive, and the
being relieved of the payment of canal
f tolls by ships engaged in our coast-


to-coast trade would affect neither the rates of the regular steamship lines nor the charges of the transconti-
nental railroads.


PANAI