The question of tolls at Panama is, of course, very important in its bearing upon the future popularity of the canal. It would certainly not have done to make the Panama charges higher than those at Suez. These latter have been reduced as from January 1, 1912. They are now 6.25 francs ($1.206) per net ton for loaded vessels. The passenger tolls are 10 francs a passenger above twelve years of age, and 5 francs for each child from three to twelve years old. If these figures had been exceeded at Panama the traffic there would have suffered. On the other hand, the attempt to attract traffic by a great reduction on tolls would have involved a loss on the assured traffic between the eastern and western coasts of America which would have more than counterbalanced the probable gain. Mr. Taft's proclamation fixing the Panama tolls will be found at the end of the book. It will be seen that the charge of $1.20 is almost identical with the Suez toll. There are, however, to be no passenger tolls at Panama. It must not be forgotten that the Suez Canal could very well afford to lower its charges to meet the new competition. A dividend of 30 per cent. leaves a considerable margin for this purpose. [Illustration] And we must remember that tolls, however important, are not by any means the only determinants of traffic-routes. All sorts of commercial and freight considerations come into play. For example, the shortest way from Japan to the eastern coasts of North America will be _via_ Panama. Fully loaded vessels will certainly go that way. But the ship that leaves the land of the cherry blossom only partly loaded and wanting to make up a full freight may choose the route past Asia and through the Suez Canal as being more likely to serve that object. Then the cost of coal is an important point. Other things being equal, shipowners will select the routes by which coal is cheapest and the coaling stations nearest each other. With plenty of cargo coming along and good freight rates it is desirable to reserve as little bunker space as possible. I cannot go into this question at any great length, but in the competition with the Suez route it will be quite as important to have abundant and cheap coal at Colon (the pun is accidental!) and Panama as to keep the transit dues moderate.