The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-11-18
WANT CONGRESS
TO SETTLE TOLLS
Financiers Anxious That Panama
Canal Rates BE
Decided.
HANDICAPPED BY TREATY
They Are Not Certain That
Preference Can Be Given
American Ships.

Washing ton, November 17.--Rcgula-
ton OF the tolls for the use by vesy
sells of the Panama Canal VIII be au
important subject OF discussion and
action by Congress at the coming ses-
sion. The bearing of the Iay-Pauncc-
fote treaty upon this governments
right to discriminate In favor OF it's
own vessels may prove embarrassing.
1t Is strongly urged by some mem
bers of Congress that the rates shall
not be one cent higher than IS abso-
lutcly necessary TO get the business.
1t is hoped that 1t Will not be ncccs-
sary to make the canal free yet IT
might not be going too far to say
that Congress would do this If It were
convinced that other nations could
come in and monopolizc trade at the
expense of the United States II tolls
were charged. Before the question
can be settled thorough study of
the carrying trade OF the world must
be made, and Congress must satisfy
itself as to tho diversion of trade
likely TO be caused by one policy or
another aftcr the canal is opened.
May lie White Eicphnnt.
Some Senators are known TO feel very
strongly that the United States may
md the canal rather u white elephant
than an aid to commerce unless IL in
sists upon the contention that the pro-
visions of the -Pauncefotc treaty
OF 1901 do not apply to the coaEwlsc
trade. In other words. they would per
NIT coastwise vessels of the United
States to go through the canal either
free or at nominal rates. or, II the uni
form rates were to be charged such
vessels, the money to be refunded to
them by the government. Secretary of
War Stimson, In his recent address at
Kansas City, suggested as 4 solution
OF the problem that tho power of the
Interstate Commerce Commission even
to the regulation OF rates, should be
extended to include the canal route
According TO Article III. OF the treaty,
the United States adopted as the basis
of naturalization of the canal the
rules embodied In the convention OF
Constantinople of 1888 for the free
navigation OF the Sucz Canal These
rules contain the following langua ge.
which is made part also of tho Hay
Pauncefote treaty:
The canal shall be free and open
to the vessels OF commerce and of war
of all nations observing these rules.
on terms of entire equality, so that
there shall be no discrimination
or subjects, in respect of the conditions
or charges of traffic or otherwise. Such
conditions and charges of traffic shall
be just and equitable"
Treaty Is Not Popular. 'nSt
The diplomacy which negotiated 'this
treaty on the part of the United
States finds few admirers in Congress,
now 1t Is seen that tho effect of the
treaty may be- while permitting the
United States to build the canal. to
effectively prevent the government
from operating it to the highest adj
vantage OF American commerce. 1t
is believed. however. that tho United
States should refuse to recognize
these obligations as preventing 1t from
favoring Its own coastwise trade. In
fact. Senators may be found who
would not hesitate to urge the abro-
cation of the whole treaty should
Great Britain decline TO agree to the
Interpretation OF this clause by the
United States.
Secretary Stimson believes that the
United states has both a legal and
moral right to subsidize it's own
shipping. as Great Britain does her
Canal. But even IL this is SO it does
not point the Way clearly to canal
toll legislation. for the principle Of
ship subsidy is involved in the uues-
ton. and II would be difficult to get
any subsidy legislation even of this
character through Congress unless il
could be demonstrated that tho con
cession was necessary to save the bus
mess from going to other nations and
would not operate as gratuity to shin
owners when they could get along
without 1t. 1t is evident, therefore,
that the problem of deciding upon
a Panama Canal policy is not an easy
one and presents many perplerities.
Urged to Settle Tolls.
Congress has been pressed for & year
or more to settle quickly the question
OF canal tolls by capitalists who are
trying to decide in their own minds
whether or not 1t will pay them to
ouild ships to go through the canal
One capitalist In particular had a plan
for building fleet of some fifty steam
shlps. and 1t was understood that he
received good deal of encourage
.nent In Washington. where 1t was In
timated that government mail contracts
would be forthcoming If his line were
in operation.
His scheme was distrusted at nrst
IN some quarters as possibly one to
play into the hands OF existing Ines,
IKE the Pacific Mail, and thus end in
monopoly. but recent devclopments
have rendered it fairly certain that
the existing lines were anything bur
pleased with the idea OF having this
new rival In the field.