Show BIG DEFICIT SHOWN FOR PANAMA CANAL revision of toll system Is I 1 seen necessary washington D C citing a deficit of in the operation of the panama canal for the fiscal year of 1936 the annual report of the secretary of war admits that the present system of collecting tolls permits inequalities manipulations and endless reductions in charges r resulting e s alting in losses to the united S states ta t e s and unfair advantages to shipping interests the report of secretary harry H woodring makes no recommendation that congress increase the toll charges to a point where they will at least pay the interest charges on the capital investment of million dollars and eliminate the unfair discrimination against producers of the central states in favor of those of the pacific coast and eastern seaboard however he does recommend legislation to correct the present system of measurement of vessels which he declares has no justification in equity among the several types of ships and may be considered as a form of subsidy to certain types which are able to take advantage of the system subsidizes east and west manufacturers and other shippers of the middle west have 10 long ng main maintained that the panama canal toll charges are so low that the effect is to subsidize shippers of the east and west it is cheaper for example for a manufacturer on the eastern seaboard to ship his products to the west coast by water than for a middle western manufacturer to ship to either coast by rail the argument of these producers as well as consumers representatives is that the toll charges should be increased to a point where they will give promise of amortizing the canal investment legislation such as secretary woodring proposes failed in the last session of congress but an act was passed which authorized the tha president to appoint a 4 neutral committee of three members tor for the purpose of making an independent study and investigation of the rules for the measurement of vessels using the panama canal and the tolls that should be charged recommended legislation the annual report recommends legislation for the follow following i ng purposes first to reestablish establish re in the present law the system originally intended by the congress which through technical interpretation has become ineffective a system based upon the earning capacity of vessels and patterned generally after that in use for ship canals which has operated successfully over a period of many years and which is designed to avoid the very inequalities which result from the dual system now in effect second to abolish the unsatisfactory unfair dual system of measurement whereby toll charges are based on one tonnage rating and the limiting factor on another different and smaller tonnage rating which is subject to manipulation third to regain control over the tolls charged and to stop further and apparently endless reductions in tolls paid |