| Show ASSURES GREAT GRAT BRITAIN i. i Of fAIR TREATMENT IN US USE C t Of PANAMA PAAMA CANAl SECRET SECRETARY KNOX REPLIES TO NOTE CONCERNING TOllS Declares Foreign Shipping Rates Will Not Wot Be Increased Be-Increased Increased to Balance Remission to American Coastwise Vessels QUESTION NOT NOT- NOW IN INFORM INFORM INFORM FORM FOR ARBITRATION Reference of Issues to Special Commission of Inquiry Proposed Proposed Proposed Pro Pro- posed if Controversy Cannot Be Adjusted by Other Means W vy iJ Jan Jm 23 23 S tr tary tur Knox's reply to lo the British Brit it ish protest against the exemption of American coastwise shipping from Panama canal tolls tos assures the British Brit Brit- ish government that domestic coastwise coastwise coastwise coast coast- coast wise trade hade will ill not be e permitted to to extend esten operation into foreign compeR- compeR tive tivo fields Tho The reply also gives assurance that increase tolls will not be laid nid on foreign for fol eign shipping to balance balanco the remission to American n ships If Great Britain Is not anH satisfied on these points Amer Amer- America ica lea proposes a special commission of The communication Is devoted do to lb the purpose of ot reducing to the he smallest point and number the issues upon which tho the two governments 0 failed ailed to a agree ree and as to these these only only two two two-It It Is contended that the they are ale entirely susceptible susceptible sus sus- of or adjustment by br diplomatic Continued on Pa Page lage c 3 Column 1 1 GIVEN Of FAIR TREATMENT i j N PANAMA CANAL CANALi i Secretary Knox Replies to 1 British Protest on SubI Sub- Sub I j of Tolls i Conlin Continued ed From Pago One Ii L and without recourse to means t k- k f tion If It this course should shoud not prove acI acceptable ac RC- ac- ac I to tho to British government It ItIs Is suggested that the whole controversy t i be he referred d to a special commission of or Inquiry provision for or which was made r. r In the Knox Boyle general generalI I arbitration treat treaty That Tha t conven convention 1 1 was wa approved cd by tho Senate with an nn which curtailed tho rf amendment power 1 p or of tho the special commission of or Inquiry to toli li t mere Investigation In and report and re refused refused refused re- re fused to permit tho commission to bind either cither r country countr to a course of or arbitration I tion in its findings Because of ot this amendment President Taft so far tar has declined to consummate tho the treaty by br exchanging ratifications with the British government go To meet the needs of this present issue Secretary Knox now offers to toi i J give jive life tire to the treaty treat b by an Immediate Imme Immo- diate dinto exchange of or ratifications which would Insure the tho existence of ot a general i arbitration treaty between America and Great Britain after the lapso lapse of ot the tho ex existing ex- ex lay Hay treaty treat Juno 4 1 next As an alternative e tho the secretary is willing that a commission bo be created cre cre- for tor tho the special purpose of ot ascer- ascer the facts In regard to tho the of- of upon British shipping of ot tho the Panama canal tolls toils act and the Prest- Prest dents dent's proclamation fixing the tho tolls toils 1 Toll Channel Situation Much of or the secretary's argument I rests on his contention that Sir Edward Edward Ed Ed- ward ard Greys Grey's protest being made In advance advance ad ad- vance ranee of the Issue of oC the Presidents President's proclamation fixing the tolls is entirely entirely en en- inapplicable to tho the controversy contro In Its present state and that as a at t matter of ot tact fact the British contention k 1 rests upon apprehension of things that i ma may happen In the future to the tho Injury of ot British shipping which in all 1 probability probability ability will never ne occur Pointing Pointing- out that the Grey Gre note was as i Issued without consideration of ot tho the Presidents President's toll proclamation tho the secretary secretary sec eec rotary states that Sir Edward deals chiefly chief with tho the possibilities of ot what tho President might do under tinder the canal act whereas as the proclamation has en entirely entirely en- en l changed tho the situation Thus clearing va a away all irrelevant ob obi objections objections ob- ob the note proceeds to discuss tho the assertion that tho exemption of at United States coastwise ve vessels solo from rom tolls Is a a. discrimination against g Brit Brit- Ing lag vessels Mr Knox recalls Sir Edward Greys Grey's admission of ot the right of ot the tho United States tes to 10 grant subsidies to Its shipping generally or 01 an any particular branches and although It ft j Is a form of sub subsidy Idy to exempt the coastwise shipping from Crom tolls taUs he regards It as objectionable as S throwing an ln unfair share of tho burden of ot upkeep in tho canal on foreign shipping Objection Based on nn n Conjecture As As to 10 this says the secretary itI it itis I is sufficient to say ear that obviously the I United St States Is not ot to bo o denied tho the power to remit tolls to Its own coastwise coast coast- wI wise so tra trade e because of ot a n suspicion of ot possibility that the re regulations yet to tobe tobo tobo bo be framed traIned may not restrict this exemption exemption tion Lion to bona boria fide tide coastwise traffic Tho The answer to this objection therefore therefore therefore there there- fore apart from Crom nn any question of ot tr treaty aty Interpretation is IR that It rests on conjecture con con- jecture as to what ma may happen rather than upon facts and does docs not present a I question for Cor submission to arbitration as ag It has hils not as yet et passed beyond tho the stage where It fl can properly bo dealt with ith b by diplomatic discussion i I Taking up uP Sir Edward Greys Grey's Hon that the tho canal act would enable tolls toUs to bo ho fixed which would not be Just and equitable tho secretary calling calling call caB ing attention to tho fact tact that this statement statement state state- ment merit was made ronde without knowledge of or orI I j tho the Presidents President's toll toil proclamation remarks remarks remarks re- re marks that this again Is based upon a n. amere amere I mere contingency that there Is no claim that the tolls an nR now actually fixed aro are not Just and equitable Ton Tolls FI Fixed ed Without admitting that the burden of ot pr ot rests upon the United States to show that all traffic has hag not been boen reckoned with In fixing upon tho the tolls toils and that consequently the they are blo Secretary Knox welcomes tho the op opportunity opportunity OP- OP of ot informing the British government government government gov gov- that such Is tho the case and that In adopting the rate of ot 25 1 per ton Prof Emor Johnson included American coastwise shipping in his calculations quoting from Crom his report in which It Is shown that Professor Protessor Johnson calculated calculated calculated the tho tonnage passing through the canal in 1915 a as aH composed of or American coastwise shipping tons American foreign shipping tons and ami foreign shipping tons It was on this thI estimate that tho the President fixed the tolls If Ir as a matter of or fact Secretary Knox declares the tolls now fixed fl of or which Sir Ec Edward ward Grey seems unaware unaware unaware una una- ware do not exceed this requirement interest on the capital expended E and antI the cost coat of or operating and maintaining maintaining- tho canal and as heretofore pointed out thero there Is s no claim clam that the they do ItIs it itis itis is not apparent under r Sir Edt Greys Grey's contention how Great Britain could be bo receiving unjust and blo We treatment It If the United States faVors fa- fa yore fors Its coastwise vessels b by not nol collecting col- col their share sharo of ot the tho tolls necessary sary to meet tho the requirement The exemption of ot the coastwise tra trade o from rom tolls or tho the refunding of at tolls collected from tho the coast coastwise trade merely is a 0 subsidy granted by tho the United States to that trade and tho the loss resulting from not collecting or from refunding those tolls will fall tall solely upon the tho United States In the same sarno way vay the loss will vIll fall tall on tho United States if It tho the tolls fixed by tho the Presidents President's Presidents President's Presidents President's dents dent's proclamation of all vessels r represent represent rep rep- present p- p resent less than the fair value of or tho the service rendered which must necessarily ly y be tho the caso case for many y years ars and tho the United States will therefore be in tho position of ot subsidizing or aiding not merely Its own coastwise coast vessels but torel foreign n vessels as well Only when complaint is made by b Great Britain that British vessels actually ac- ac have havo been subjected d to unequal treatment or inequitable tolls Secretary Knox assorts asserts can the question bo be raised whether tho United States is bound by the Hay Ha treaty to collect tolls from American vessels and whether British vessels are arc entitled to equal treatment Until these objections rest upon something more substantial than mere possibility he says It IB is not believed that hat the they should bo be submitted to arbi- arbi t ratio n. n S I |
