The Montgomery advertiser., 1904-12-18
peciai Correspondence of The Adver-

Ancon, canal zone, Dec. 1.-'The or | der which l signed for which I alone | am responsible, and which was put in- | to effect against the wishes of Gen. namely, the order enacting the pro- visions of what is commonly known as the Dingley tariff bill, into a law on the Canal strip, confess to have been l a great mistake"
 This important declaration was made by Secretary of War Wm. H. Taft. on Monday evening, the 5th inst. before a large assemblage of people. while standing on the balcony of the Grand Central hotel. under canopy of the American and Panamanian national colors. gracefully intertwined. in the center of pretty electric arch, and surrounded by notable representatives of two governments.
 This announcement covers in brief the result of the conferences that have been held daily since the arrival of the Secretary on the Isthmus. and rings down the curtain on all differences Between the goverpment of the United States. and that of Panama. past and present. The era of good feeling that began so auspiciously between the peo- pie of tho two countries at the conclus- ion of the original treaty negotiations seems now to have been renewed and Americans resident only hope that ami- cable relations may continue until the last spadeful of earth is taken, from the canal.
 The temperament of the average Panamanian is subject to violent thermometric changes. One day 1t as- cends to the summer heat and fever stage; the next day, 1t fs lowering around the bulb. Two weeks ago. the American government was looked upon by a majority of Panamanians in the light of a tyrant; today they regard the great republic of the north as a big brother. There has been elation on every hand since the result of the re- cent negotiations became public. The recession of the United States govern ment from its stand previously taken, in nearly every point even with the 'ifs" attached. constitutes an impor- tant victory for the Amador adminis- tration. The various contentious. and their history have heretofore been given in these letters. so in reviewing the essential points in the new order. the inception of the disagreements will be only lightly touched upon. Secretary Taft arrived on the Isth- mus November 27th. and brought with sign and put in force any arrangement that hade fair to offer solution. hon. orable and satisfactory to both Repub- lies He was accompanied by Admiral Walker, Chairman of the Commission, Senor Ibaldia, the Panama envoy at Washington, MT. Wm. Nelson Crom- well, who more than any other one man has played the part of "go-between" in the transactions of the two govern ments, and others. The conferences began on Monday. the 18th, u1t., and continued n far taH Nrt on which day news of the concessions that had been made by the American representative leaked out. The result of the negotiations was not formally announced until Sunday, Dec. 4. tho official order being dated December g. and effective on December 12.
 There were only three main points at issue between the two Governments, as follows:
 the Republic of Panama to points in the Canal Zone
 Control of the ports of Ancon and CristobalA Control of the postoffice revenues. Under the former interpretation of the treaty, goods entering the Canal Zone from the United States were ad- mitted free of duty, but goods enter- ing the Canal Zone from the Republic of Panama were subject to the same tariff regulations as merchandise from any other foreign country. Viewing Panama in the light of an independent nation. in the abstract, this arrange ment does not appear so unreasonable. But to the merchants of Panama and Colon, 1t spelled one of two things. They would either have to remove their stores to Zone territory, or drive a losing business They quickly recog- nized that the merchant doing business in the Zone. and getting his goods from the United States duty free, could easily place himself outside the pale of successful competition from one in Panama, who has been required to pay a duty of 15 per cent gold on all mer- chandise imported. either from the United States or European countries.
 The recent order modifies the old one by making all importations into the Canal Zone, subject to a duty, with the following exceptions:
 Material for canal construction.
 Goods in bond.
 Coal and crude mineral oil for fuel ,' purposes to be sold at the ports of Cristoba1. or Ancon.
 This modification, however, provides that the Panama Government shall re- duce its present duty of Is per cent gold on all imported articles, with the exception of all forms of imported wines, liquors. alcohol and opium. This section of the new order also provides that the consular fees and charges of the Republic of Panama in respect to entry of all vessels and importations into the ports of Panama and Colon shall be reduced to 60 per cent of the rates now in force. and further, that goods entering the Canal Zone shall be subject to no other tax whatever.
 Control of the Ports.
 The control of the ports of Ancon. (La Boca), and Cristobal. (Fox River) remain vested in the Isthmian Zone Government, but all vessels will here after enter and clear from the ports of Panama and Colon, and be received by the customs officials of the Panama Government. Vessels entered for the ports of Panama and Colon may at the option of the Zone Government officials, be allowed to dock at the Fox River and La Bocas wharves, to facilitate un- loading of cargoes, provided similar privileges are extended at any time by the Panama Government with respect to the ports of Panama and Colon. The quarantine service is not. of course. in