New-York tribune., 1911-02-22
THEDAyIN WA SHINGTON

differential In favor of the Panama route,
which is the longer by several hundred
miles. This II declined TO do. The Panama
lpes then appealed to this government
for larger share of tho rate between
New York and San Francisco than had
hitherto been allotted for transportation
between Panama and San Francisco with
the result that this government agreed 10
allow 10 per cent OF the through rate
for that portion of the haul. Having OBJ
tanned this concession. the Panama lines
cut their rates TO n point which has re-
suited in their getting mora business than
can be conveniently handled by the Pana-
ma Railway. while the Tehuantepec lines
are protesting vigorously at their loss or
business. The chief interest of this gov
ernment in this situation rests on the fact
that the amodnt OF business now going by
way Of Panama cannot be handled by the
Panama Railway without interfering with
the construction of the canal. The Sec
retary of War has instructed the lines do
ing business on the Pacific portion OF the
route TO show cause why their proportion
Of the rate should not be reduced from 10
TO 30 per cent.
POSTAL SUBvENTIoN.--The action Of
the House Postoffico Committee in reporting
favoraby the postal subventicn bill to-day
does not indicate any probability that this
measure will be enacted. The bill was re-
ported by a vote Of : to 6, while two OF
trose voting to report it reserved the right
to oppose IL on the floor. Even il this were
not the case, however, this measure. which
at best could command only narrow mar
gin over a Majority of the House. and which
passed the Senate only through tho Vice
PRESIDENTS casting the deciding vote, would
have no possible chance under speciai
rule which requires 4 two-thirds majority.
"Reouscat" may therefor be written oppo-
site the name Of postal subven,ion in the
record Of this session Of Congress.
GAINES'S FIASCo.-The Ways and
Means Committee, in executive session. put
the quie,us on the silly measure OF Repre-
sentative Gaines, Of West Virginia. to-day.
Actuated apparently by the same desire as
Mr. Bennett. of New York. either to gain
modicum Of free advertising or to execute
somewhat bunglng flank movement
against Canadian reciprocity, Mr.. Gaines in
troduced a bill providing for absolute free
trade between this country and Canada, and
q tariff wall between those countries and all
others for period of twenty years. ana
appropriating s1.O00,000 TO carry out the
provisions Of the measure. The ways ana
Means Committee, on the insistence OF Mr..
Gaines. met to-day to consider the bill, but
on examination decided that II was too silly
70 occupy their time and an adjournment
was promptly taken.
MUCKRAKINC NONSENSE.--The Presi-
dent, replying TO inquiries to-day. stamped
as the fgment Of the brain Of mucH-
raker with boundless Imagination the
more or less sensational story sent out
from Washington regarding the Argentine
battleships and the United states naval
plans. The substance of this story. which
received generous space in newspapers with
a taste for such stuff. was that the plans
for the latest United States battleships had
been placed al the disposal OF the Argen-
tine government, in order that Secretary
Knox might secure for the Steel Trust the
contract 10 build the Argentine ships; II
being further alleged that Mr.. Knox had
AT one time been attorney for Mr.. Schwah.
former president OF the trust. The only
basis for the story Is that certain conven-
tional plsns-not those OF the latest type OF
battleship--were placed al the disposal OF
Argentina--a practice customary with Eng
land and other shipbpildlng countries. Mr.
T-..- vas never attorney for the Steel
~,,.s, or for Mr.. Schwab. and the plans
lent 10 Argentina have long been public
and reveal no secrets c.. G.. II.