Note 5 — Chapter I

In the memorial presented in 1905 to the United States government by the diplomatic representatives of various South American Republics, asking for fair treatment in Panama railroad rates, these statements were made:

It may be calculated that the most distant ports of our respective Republics are from New York, 4,500 miles, via Panama. From those same ports to New York there is a distance of over 11,000 miles, via Magellan; and, nevertheless, the transportation by this last route and the transportation by steamer from our ports to Europe, are on an average from 25 to 30 per cent cheaper than our commerce with New York via Panama.

The Peruvian sugar pays, by the Isthmus, 30 shillings sterling a ton, and 23 shillings sterling a ton via Magellan.

The cacao of Guayaquil, via Panama, pays to Europe from 52 to 58 shillings a ton, and to New York 65 to 68 shillings a ton.

From Hamburg shipments of rice from India are constantly being made to Ecuador, via Panama, at the rate of from 30 to 33 shillings sterling per ton of 2,240 pounds, or, say, from $7.50 to $8 per ton; while the same article from New York pays at the rate of $0.60 per 100 pounds, or, say, $13.20 per ton,—an overcharge of almost 75 per cent. Twelve coal-oil stoves, which in New York, free-on-board, cost from $45 to $48, pay on the coast of Ecuador and of Peru 30 and 37½ cents, respectively, per cubic foot, or, say, $19.20 to $21, which represents 42.66 per cent upon the cost price. The same article bought in Germany would pay a freight of from $6.40 to $6.75.