Page images
PDF
EPUB

French island of New Caledonia, and Rhodesia in South Africa, furnish practically all of this supply. California has deposits, many of them within 20 miles of ports, which are adequate to produce the entire consumption at a price, using the Panama Canal, laid down in the ports of our Atlantic States and in ports of the European countries, which will displace the greater part if not all of the supplies now had from New Caledonia and Rhodesia.

If a Panama Canal toll be imposed it will be paid by the California producer, and, so far as foreign commerce in chrome-iron ore is concerned, will absorb so much of the profit margin that no foreign export of it will be made through the canal. If the canal be toll free there will be effected a diversion of vessel traffic from foreign ships to American ships coastwise of the carrying capacity of 60,000 short tons, and a further diversion of foreign ship capacity of 90,000 tons into our States foreign trade.

Prior to 1880 there was a great tonnage of metal ores, gold, silver, copper, and lead, from our Pacific coast ports by ship to ore-treatment works in Wales. It is my opinion that this foreign commerce will become recreated through the Panama Canal. The total shipment of 1,000 tons daily of these metal ores from the territory west of the Rocky Mountains and north, including Alaska, seems a most conservative estimate of its probable magnitude. If toll be levied it will be paid by the producers of the ores.

Senator WALSH. Where will that go?

Mr. DUNN. To Wales, where it went prior to 1880.

Senator WALSH. You would not expect to ship ore for smelting in Wales in competition with the smelter at Tacoma, would you? Mr. DUNN. Some ores.

Senator WALSH. What ores?

Mr. DUNN. Some copper ores, some arsenious ores, ores carrying antimony, and some of the ores of rare metals. The condition created by the canal will be such that these ores can be shipped from any point on our coast, either to smelters in Wales or to our own smelters. There would be opened a competitive market.

Senator WALSH. I can not understand that at all. I can not understand how you could ship to Swansea, Wales, as cheaply as you could to Tacoma.

Mr. DUNN. The freight on ores of that character will be low and the treatment charges in Wales are less, and they have a method of buying in Wales which has been employed before on the coast, by which they pay for ores on bills of lading right at the shipping point.

Senator WALSH. You ought to give us some figures showing the additional cost of transportation to Wales and the less treatment charges.

Mr. DUNN. I could have given those figures if I had supposed that the magnitude of the item justified the additional preparation.

Senator WALSH. I shall be immensely surprised if, on further investigation, you find that you can ship metal ores from the Pacific coast. to Wales, have them treated in the smelters at Swansea at any less cost than you can get them out at the smelter at Tacoma.

Mr. DUNN. I had a recent experience in that line. I had some carbonate ores of copper. The smelters on the coast are equipped for handling the pyritic ores, the sulphide ores. There was a great disinclination shown to take these high-grade ores oxide, and finally

a price was made to me on a small trial lot. A shipment has not been made yet. But at Wales they buy anything. They take any ore. They bring copper ores from Spain into Wales for treatment.

Senator WALSH. I imagined that we had about as fine metallurgy out west as they have anywhere in the world.

Mr. DUNN. I think that is true. But take copper, for instance, after the copper has been produced it comes from our western smelters in the form of a matte which has to be refined, and that matte carries a very high freight charge.

Senator WALSH. If you had spoken about the transportation of matte, I might be disposed to believe there was something in it.

Mr. DUNN. And I think that the rest of the charges would be made so low that it would be cheaper for certain classes of ore—I do not say all classes, but certain classes of ore-to be bought by foreign smelters, where the amount produced is not sufficient to justify the operating of the special kinds of treatment works on the coast to treat them.

Senator WALSH. Have you included the shipment of copper matte! Mr. DUNN. No; I have not counted copper matte. I would assume that to be refined in California or that it would take the present routes of shipment east. I am discussing, I would say, merely the additional commerce that will come, not that which already exists.

GREEN FRUITS AND VEGETABLES, EXPORTS BY CANAL.

Discussing the next item of my table of exports, "Green fruits and vegetables, 800,000 short tons:" The present exports of these articles by rail approximate 1,500,000 tons. The portion of it going to inland points will continue to take the direct rail route. All which can go with the dispatch which is necessary will go through the Panama Canal. That the latter part will be increased at least by the amount of my estimate of 800,000 tons seems conservative in consideration of the following reasons:

First. The reduction of the freight charge by rail of about $30 per ton to not over $6 or $7 by sea and the canal. Second. The reduction of the refrigeration charge during transportation, and the reduction of the loss from spoiling in transit. Transported by sea it will be possible to keep these articles in a perfectly aseptic atmosphere at temperatures which accelerate or retard ripening at will. Third. The time of transportation by 22-knot steamers will be 10 to 12 days to New York and 14 to 16 days to European ports. There will be ample transport capacity of such steamers, and the markets of Europe for the first time opened to these exports of the Pacific coast States will absorb all these articles which can be transported to them. A toll charge, if imposed, would sometimes be paid by the consumer, but most often by the producer.

WINE, DRIED AND CANNED FRUIT EXPORTS BY CANAL.

The next item of my table, "Prunes, raisins, canned and dried fruits, wine, 400,000 short tons," is a very moderate estimate of the expansion of a commerce in articles already well established consequent on the opportunity of the Panama Canal which will reduce by two-thirds the transportation charges to markets, which, given the benefit of the lower prices, will likely demand more of the articles

than can be produced. The imposition of a Panama Canal toll may affect exports through the canal a little at times. The toll would sometimes be paid by the consumer and sometimes by the producer, perhaps as often one as the other. Practically this new commerce. will all be foreign commerce conducted by foreign ships.

Senator SIMMONS. How much will it reduce it in this country from coast to coast? You say it will reduce it two-thirds going to Europe. How much will it reduce it going from coast to coast in this country?

Mr. DUNN. It will be a less amount than that, for the reason that a considerable quantity of it already goes by the Tehuantepec route, for which the reduction would not be over one-quarter going toll free through Panama.

Senator SIMMONS. Do you mean to say that the difference between the toll rate and the Tehuantepec rate would only result in a reduction of one-quarter of the present rate?

Mr. DUNN. I am trying to be as conservative as I can. I think it might be a little more, but I am sure it would be as much as a quarter. I only know one rate positively by the Tehuantepec route, and that is a rate on sugar of $9.50, and I have assumed that as a basis of all large shipments of about the same character of goods.

Senator SIMMONS. $9.50 from where?

Mr. DUNN. $9.50 is made from Hawaii to New York via the Tehuantepec route.

Senator SIMMONS. How much does the Tehuantepec road get of that $9.50?

Mr. DUNN. I understand one-third.

Senator SIMMONS. Have you worked that out in figures?

Mr. DUNN. That would leave the amount received by the ships on both sides of the canal $6.34 or $6.33.

Senator SIMMONS. Do you consider the fact that it has to break bulk there?

Senator WALSH. That includes that.

Senator SIMMONS. They get one-third for unloading it from the ship at one end and loading it at the other, and carrying it across? Mr. DUNN. They have about twelve hundred miles additional carriage by Panama to make, and I thought that would be an offset for the lost time in port. It is very hard to be precise in figures of this character.

Senator SIMMONS. What do you calculate would be the tolls on a ton weight of sugar? That is, 2,000 pounds of sugar.

Mr. DUNN. I think I have that a little further on exactly. Senator BRISTOw. I would suggest, Senator Simmons, that he seems to have quite an elaborate statement there, and perhaps he will answer most of these questions before he gets through.

Senator SIMMONS. Proceed. I will say that I will try not to interrupt you any more, because I am exceedingly anxious to get through to-night.

GRAIN AND HAY EXPORTS BY CANAL.

The estimate of 500,000 tons as the increase of existing exports of grain, supplemented by hay, is conservative. It will come from Oregon, Washington, and Idaho principally, though California alone. in 1880 exported more than a million tons of grain. If a canal toll be imposed on this export commerce through the canal, exports of barley will carry it, payment of the toll being made by the producer,

43756-14- -53

but other grains and hay, having smaller profit margins, will not be able to absorb the toll, so will not be moved to any extent through the canal.

FISH EXPORTS BY CANAL.

The Pacific coast fisheries are capable of yielding an annual tonnage many times the 200,000 tons of present annual output. New and very cheap processes of preserving fish fresh through long shipment by sea make it certain that an enormous export commerce in fresh fish will be created using the Panama Canal route. Salmon and halibut particularly will be marketed fresh in European ports. The estimate made here of 250,000 tons annually does not seem excessive. It will, I think, be divided into 75,000 tons coastwise and 175,000 tons foreign commerce. A Panama Canal toll, if levied, will be paid by the consumers of the fish.

WOOD PULP PAPER EXPORTS.

The last item of my table of exports, "Wood pulp paper and other manufactures, 400,000 tons," will be wholly new commerce. Besides vast areas of forest, largely in Alaska, of wood very suitable for making paper pulp, wood paper pulp will be made from part of the waste of lumber manufacture. I am able to foresee an even larger manufacture of this article for export than I have estimated. It will move through the canal in coastwise commerce, whether charged with toll or not charged with toll. The toll, if charged, will be paid by the producer.

Senator SIMMONS. I want to ask you some questions right there. Down in my country we have been talking about using these tops for paper for year after year, but have not started to use any yet. Are they using any of it up there now?

Mr. DUNN. I am told by the redwood men that they are commencing to use the redwood shavings and slabs for paper pulp.

DISTRIBUTION OF VESSEL TONNAGE OF EXPORTS.

Using the estimates and conclusions expressed in the preceding discussion of the several items of the table of prospective Pacific coast exports through the Panama Canal, I construct the following tables, showing the distribution of that commerce, coastwise and foreign, assuming in the first table that no canal-toll charge is made on either

[blocks in formation]

Senator SIMMONS. You have given so many tons of these various articles as to the coastwise traffic that will go through the canal. How much does it all foot up?

Mr. DUNN. I am about to give it. It is 4,120,000 short tons coastwise and 2,405,000 short tons foreign.

Senator SIMMONS. Are you aware that the other witnesses who have testified, Prof. Johnson and several others, have made an estimate that in 1915 there would be only about 1,000,000 tons of coastwise traffic passing through the canal, and you have picked out certain articles and run it up to 4,000,000, about four times as much as they estimate would pass through?

Mr. DUNN. I qualified my statement in the beginning by saying that when the new trade conditions had become adjusted. It may take, and probably will take, several years for that adjustment to be effected. It is quite possible that both Prof. Johnson and myself might be right.

Senator SIMMONS. You mean in the course of years that much will go through?

Mr. DUNN. In the course of a very few years. I am ready to do some of it now if I had the ships and the canal was open.

If toll be imposed on foreign commerce only the amount and distribution of vessel tonnage will be as follows:

[blocks in formation]

If toll be imposed on both foreign and coastwise commerce, the amount and distribution of vessel tonnage will be as follows:

[blocks in formation]
« ՆախորդըՇարունակել »