The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

August, 1912 the Isthmus of Panama to be considered. The first of these is the tolls; the second, the cost of coal on the Panama route as compared with other routes. Then he defined the traffic which is for geographical reasons likely to use the canal from that which has a choice between the Straits of Magellan, the Cape of Good Hope, the Suez canal and the Panama: canal. He says: The Panama route will have a monopoly of the traffic of Hawaii and of the west coast of North and South America, with the exception of a small part of the trade of Southern Chile, but it so happens that the marginal traffic for which the Panama canal must compete with other routes is of exceptionally large tonnage and value, comprising the major share of the commerce of Pacific Asia and of Australasia. The ships engaged in the trade of which the Panama route has a monopoly will comprise the larger share of the canal's tonnage, but the marginal traffic is a prize so well worth competing for that it should be given careful consideration in fixing the tolls to be charged at Panama. The volume of traffic and the commercial usefulness of the canal, as well as the revenue obtained from its operation, are dependent upon the transit dues. Dr. Johnson thinks that a toll of $1.00 a ton will probably be sufficient to divert the commerce between Europe and the central districts of Chili to the Straits of Magellan were it not that vessels engaged in that trade would want the coast trade of South America on their way. Moreover, the Panama route would offer opportunities to buy coal so much more cheaply on the Isthmus or in the West Indies than on the east coast of South America that the difference in the price of fuel would probably be equal to one-half or even more than one-half of the canal tolls. The canal, under any tolls it is likely to impose, will probably obtain the trade betwéen the Atlantic coast of the United States and Australia and New Zealand, but for the European trade with Australasia the Panama canal will have serious competition from Suez for fast steamships, and from the Cape of Good Hope for ordinary freight vessels. If the Panama tolls are kept lower than those of Suez, some of this trade should be captured. Concerning the trade with the far east, Dr. Johnson says: The Panama and 'Suez routes will be active rivals in the rich traffic field east and north of Singapore. The line con- necting points equally distant from New York by way of the opposing routes runs through Hongkong and Manila. To the north and east of those cities the distance and time advantage is with the Panama route for trade of the eastern seaboard of the United States. To the south and west of - Hongkong and Manila the Suez route will have the ad- vantage. There will be some traffic from places north and east of Hongkong and Manila that will be taken to New York and the east coast of the United States by way of Suez. It is equally true that vessels will start from points west of Hongkong and Manila and proceed by way of Pan- ama to New York. There will be an overlapping of routes between Singapore and Yokohama. Dr. Johnson considers that any traffic between Europe and Japan, China, or the Philippines by way > of the Panama canal will be attracted because the tolls are lower than those of the Suez canal or because of cheaper coal, and he suggests that the tolls of the new canal be adjusted to try to gain some of this trade. In 1910, there were 12,000,000 net tons of it and it would be a fine thing if the Panama canal could obtain say 20 per cent of this. The question of coal is an important one and if it THE MARINE REVIEW 267 is commercially possible to deliver and sell coal at Panama cheaper than it can be procured at Suez, it should have much influence in diverting traffic to this route. Coal at the present time is selling at $6.00 per ton at Suez. He gives the illustration that a freight vessel of 3,000 tons net register made a round trip from New York to the Philippines via Suez, paying $20,868 for coal. Had the same vessel made the trip via Panama and San Francisco, the coal bill would have been $18,220, a saving of $2,648. Dr. Johnson estimates that the traffic on the canal will increase 60 per cent every decade. At that rate 17,000,000 tons net register will be using the canal in 1925. He approaches very guardedly the question of free pass- age for American vessels and the prohibition of the use of the canal to vessels owned by railroads and expresses no pronounced conviction on these subjects. The Titanic Disaster Lord Mersey has rendered his decision in the case of the Titanic. The most important findings of. the court were that the Titanic was sufficiently and ef- ficiently officered and manned and complied with all the regulations of the British merchant shipping act regarding safety, but that the arrangements for man- ning and launching the life boats in an emergency were insufficient and that no drill had been held. The track of the steamer was held to be reasonably safe for the time of the year, provided great caution and vigilance were used in crossing the ice region. In view of the fact, however, that on the night of the accident the moon was not shining and especially in view of the high speed at which the Titanic was steaming, an extra lookout should, in the court's opin- ion, have been placed in the stem of the boat and a sharp watch kept by the officers on both sides of the bridge. _ The judgment does not consider binoculars neces- sary. Searchlights, however, might be serviceable, but the evidence submitted to the court was insufficient to permit of a precise answer. The court recommends that the Board of Trade investigate the practicability of providing seagoing ships in addition to their water- tight transverse bulkheads with a double skin carried 'above the waterline, or with a longitudinal vertical watertight bulkhead on each side of the vessel, or with both; that it should investigate regarding the question of providing of watertight deck or decks stretching along the whole or part of the length of the ship at a convenient distance above the waterline, and should also investigate whether the opening should be water- tight doors or some other device; that it should also report generally on the increasing protection given by the subdivision of the vessel with the object of keep- ing the ship afloat with the greatest proportion of her length in free communication with the sea. It is suggested that an international convention be called to agree on a common rule for the subdivision of ships, life saving apparatus, wireless regulations, speed in the ice regions and the use of searchlights. The court held that Capt. Smith's course in main- taining speed in the face of ice warnings was in ac- cordance with long -existing custom.due to competi- tion and to the desire of the public for quick passages, adding: "In the circumstances I am unable to blame Capt. Smith. He had not the experience which his own misfortune afforded to those whom he left behind. Other skilled men would have done the same in the same position."