transportation facilities afforded by the canal. The losses sustained by individuals cannot be so definitely measured as can the losses in tolls, but they must have been larger and of more serious consequence.

The tonnage of shipping engaged in the international trade by way of the canal will be much less during 1916 and during the continuance of the European War than it was at the time the slides temporarily put the canal out of service. In April 1916, Mr. H. E. D. Jackson, vice-president of the American-Hawaiian Steamship Company, in testifying before the Interstate Commerce Commission, stated that the company had been compelled to discontinue its intercoastal services not only because of the closing of the canal by the slides, but also because the prevailing rates by rail between the two seaboards of the United States made it necessary for vessels in the coastwise trade to charge lower rates than could be obtained by placing their vessels in the foreign. trade. Under existing conditions the company finds it more profitable to operate or charter their vessels in the foreign trade. Concerning the disposition made of the vessels early in 1916, Mr. Jackson testified:

We chartered three of our vessels the other day to the United States Steel Corporation for a year, at much higher figures than we had ever obtained by operating

ample opportunity may expire.

Although vess American-Hawai

vessels will not

trade, because of

tained in foreign

here made to the

Company because

ship line that has

trade. During th

first of July 1915,

cent. of the trade

United States thr

minals. At the p fleet of 26 vessels,

creased with the v The second larg in the intercoastal ship Company whi sels, and which op vessels under chart Mr. H. P. Hamilton enbach Steamship hearings above ref

enbach Company

coast-to-coast service during the next two years. This company, during the year ending July 1, 1915, carried 29.64 per cent. of the traffic from Atlantic ports through the canal to California terminals. The testimony of these officials of two steamship lines that were developed with reference to the intercoastal trade, and which before the closing of the canal carried the larger part of the commerce coastwise between the two seaboards of the United States, is rather discouraging as to the early resumption of the intercoastal business via the canal.

With the restoration of peace and the return of commerce to its usual volume and to its customary routes, and with the decline of freight rates to a fairly normal level, the traffic of the Panama Canal may be expected to overcome the setback it has suffered because of the war and in consequence of the closing of the waterway for a long period while the war was in progress. The present unhappy state of the world must be temporary, and, when commerce is again permitted to expand, the use of the canal will increase with the growth of international trade.

It is to be expected, however, that the demand for ships will be greater than the supply and that ocean freight rates will be high for some time after the close of the European War. If these conditions prevail, vessels will not quickly return

INDEX1

Administrative organization | Canada, effect of canal upon

1 Unless used with a qualifying word, "Canal" in this in-
dex refers to the Panama Canal.