The Washington times., 1911-11-16

Charging that American diplomacy
has scored a series of disgracefui
fiukes in establishing the international
relationships of the Panama canal, and
alleging that transcontinental railroad
finance has already reached out to
financial quarters In the effort to pre-
vent construction of American ships for
the oast-to-c coast trade via the canal,
public men who have been investiga-
ting canal affairs. are preparing for
some sensational performances In Con-
gress this winter.
DEVELOPMENTS of the last few days
have made 1t plain that canal concerns
are going to be right at the front for
some time to come
Representative members OF Congress
who have just returned from the canal
zone, have indulged in startling state
ments about the condition in which
canal AFFAIRS stand. almost on the eve
of completing the great ditch. The dip
lomatic management, or mismanage-
ment, that marked the formulation of
the treaties with England and with the
Republic of Panama, under which
those countries became partners in de-
termining the policy Of the canal, is
Dthl6 upoI III DlttcT anu
contemptuous terms
Right of Government.
"The United States must have the
sole, the, absolute, power to fix tolls by
the canal, and to grant preference to
the coastwise shipping of this counry,
even IL it becomes necessary to repudi-
ate the whole Hay-Pauncefote treaty"
declared one member Of Congress, who
has been giving most of the autumn to
the study of this situation, and who
has just come back from the zone.
Have we the power to grant free pas
sage to American coastwise shipping,
without giving the same privilege to
all the worlds shipping? l have an
opinion Of my own on that point, which
l shall elucidate at the right time
but for the present / want to say simp-
ly that in all the conduct of diplomatic
negotiations, with Great Britain and
with Panama, there is not one CLEAN of
evident intelligence by the representa-
tives of our interests. / know no per-
formance of American diplomacy so en-
tirely discreditable."
The speaker was referring to the
terms or the Hay-Pauncefote treaty be-
tween this country and England. by
which the old Clayton Bulwer treaty
was abrogated and a new ARRANGEMENT
procured, permitting the United States
10 10 puild the canal, on certain conditions.
These included guarantee that all ma
tons commerce should be treated ex-
actly alike In the matter of tolls and
privileges at the canal
1T Is going to be necessary" said the
speaker, ''to adjust our tolls to the me-
cessities of the traffic. For business
with the Orient We must compete d.
rectly With Suez. and we must make
rates that will get the business. For
business with the west coast of South
America, another set of rates NAV he
needed: perhaps not 50 low. For busi-
ness between the east and west coasts
of the United States, 1t may he possible
to impose another toll. Each route
ence to the competition it must meet.
The Oriental business will be sought
by both Suez and Panama. and I think
we can get our share of it on the basis
of the same rate that Suez charges,
about 81. 80 a ton. If Suez cuts the rate
why wen have to cut it, too, and
thereIl be a merry war of Information al
canal rates.
Horn Rate Competition.
For business to the west coast OF
South America, the canal must com.
pete with the Horn route, and with the
Tehuantepec railroad route. To the
Pacific coast of our own country, com,
petition will be with the transcontinenta
railroads, with the Tehuantepec route
ard with the Horn. -~,
CAN we can say now Is that rates
should be adapted to the requirement OF
each situation. If they cannot be ad.
justed to these necessities. because OF
the terms of our diplomatic engage,
must be modified. 1t looks to me as II
the time between now and the opening
Of the canal could be most protitabiy
occupied with the diplomatic work OF