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March, 1912 in this industry, is naturally the greater part of the trade. Any such reduction as is contemplated in the Underwood bill would throw the seaboard trade to the English manufacturer. Panama Canal Tolls Congress will in all probability some time during the present month define the policy to be pursued in relation to the Panama canal. There are so many views in conflict at the present time that it is impos- sible to state what will be done, but it certainly will be a cardinal mistake if the canal is not made free to the American ship. This great waterway was built wholly out of funds supplied by the United States government and the government has unquestionably both legal and moral rights to administer the water- way in whatever way it choses. Whenever the United States government has desired to take advantage of its natural opportunities there are always treaties in the way. Someone is sure to discover a treaty work- ing to the advantage of the other country. Treaties or no treaties, the Panama canal should be free to American shipping, otherwise no advantage will accrue except that of distance. If there is no other way to go about it, then the tolls should be remitted to Amer- ican ships, a practice which is now pursued by a number of countries in relation to the Suez canal. Good Bill to Kill There is at present before congress a bill known as the Sherwood bill which among other things re- quires motor boats over 40 ft. long, carrying freight for hire, to have a licensed pilot and licensed engineer aboard. It. also requires fishing motor boats over 40 ft. long to carry licensed engineers and pilots. This bill might as well be called an act to put a consider- able number of men, earning an honest living, out of business. Power boats have latterly been adopted by fishermen, particularly on the coast. No finer body of seamen exists anywhere on earth than these same They are the most skillful handlers of Why should they be re- fishermen. small boats in the world. quired to employ a licensed engineer? In the modern type of power launch the navigator in the pilot house has absolute control of the propelling machinery. This measure is now before the committee of merchant marine and fisheries. The committee should certainly report adversely upon it. Viewed from almost any standpoint, the Under- wood bill is an unconsidered thing. It seems to have been thrown together, little thought having been spent One of the most vicious features is the sub- stitution of ad valorem for specific duties. An ad valorem duty is a duty according to value. This antiquated system has been abandoned by every coun- try as impractical. In spite of all precautions that on' it. is done the traffic of the Suez canal will suffer. THE MARINE REVIEW O5 may be taken, an ad valorem duty results in fraud upon the treasury. The temptation is always present. It is practically impossible for the customs officials to keep acquainted with the prices ruling for com- modities abroad when one considers the wide range of our imports. The ad valorem system is a direct invitation to the foreign manufacturer to cheat the American treasury and to compete with the American manufacturer upon unfair grounds, | Influence of Panama On Suez Will the main path of commerce from Europe to the fear east continue in the future to be eastward through the Suez canal? Or. is a large part of this tremendous volume of traffic to be deflected to the. westward and moved to the Orient by way of the Panama catial ? = In the discussion of this question, which is one of those to come before the Twelfth International Con- gress of Navigation at the sessions to begin on May -- 23 in Philadelphia, the distinguished engineers who constitute that body will touch vitally upon one of the most significant phases of the Panama canal enter- prise. It has been urged from time to time that this country is in a sense building the canal for the benefit of the great maritime nations of Europe. And at the coming sessions it will be asserted that a large part of the traffic of the Suez canal will, with the opening of the Panama canal, be drawn to the westward. Elmer L. Corthell, of New York, in a paper on the dimensions to be given to maritime canals predicts that the competition of the Panama canal will compel -- the Suez Canal Co. to increase the dimensions of the canal, and it is plainly his opinion that unless this He quotes Prof. J. H. Biles, one of the greatest experts on naval architecture, to the effect that there is 20 per cent greater economy of transportation in vessels of 700 ft. in length than in vessels of 500 ft. in length when the draught is increased in the same proportion -- as the lengths It is obvious that this advantage in economy of transportation in ships of larger size will offset, if indeed it does not over-balance, the advantage of, the shorter distance from Europe to the Orient by way of the Suez canal. It is, therefore, the conviction of students of the problem of transportation that the | larger ships which may pass through the Panama canal will successfully compete with the smaller ships that can take the shorter and quicker route through the Suez canal. | That this is by no means a theory, but that, on the contrary, it is regarded as a very great danger by the Suez company is plainly shown by the fact that influential and progressive men in the Suez canal ad- ministration are already pressing for an increase in the size of the canal.