THE PANAMA CANAL ACT.
[To THE EDITOR OP THE "SPECTATOR."]
Sra,—Apart from the question of the violation of treaties, there appears to be only one valid reason why the American Senate should not give preferential terms to American ships engaged in coastwise traffic. The argument is clearly set forth in your own words : "lf coastwise shipping is to go free
the share of the cost of maintenance which will fall on other countries will be greater than it ought to be." Would it not be equally true to say that "if coastwise shipping is prevented from passing through the Canal by a tariff which, while reasonable for ships coming halfway across the world, is unduly high for traders engaged in coastwise traffic, then also the cost of maintenance which will fall on other countries will be greater than it ought to be " ? The coastwise trader has to compete with land transit, and may be unable to compete if charged for the use of the Canal at the same rate as ships whose only alternative is a trip round the Horn. So that while for complete exemption there appears to be no case whatever, perhaps it is not unreasonable that ships sailing from one American port to another through the Canal should be allowed a rebate, provided the concession be extended to vessels out of Canadian, and certainly Mexican, ports. Probably a sliding scale could be devised which, while it would greatly increase the receipts of the Canal, would give our American cousins some of the facilities they desire for their coastwise shipping. There is very ample precedent in commercial life for such a method of charging, the best instance being perhaps that of modern electric lighting and power companies. These companies charge large power consumers in many cases only one-sixth as much per unit of power as they charge their lighting consumers. Were it not, however, for the extra load obtained in this way the lighting consumer would have to pay considerably more for his current than he does now. That this analogy is not a perfect one I am well aware.—I am, Sir, &a., ALEX. H. LAW. 16 Manor House Road, Newcastle-on-Tyne.
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