Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-07-16
DEBATE IN SENATE WILL De
MOST IMPORTANT AND MOST
INTERESTING.
TWO IMPORTANT PROVISIONS
GIVE RISE TO DIFFERENCES
Use Of Canal by Railroad .ownsd Ships
and Free Tolls for American Vessels
in ceastwiss Trade Points Of Dis
sentien-Protsst Of Great Britain
compiieates Action on Measure.
lBy Special Correspondent

10y special Correspondent
Washington. July 1S.-For various
reasons, the debate on the Panama
canal bill now pending in the senate
will be one Of the most interesting and
important OF the entire session.
The canal bill contains two pro-
visions that alone would have made
the debate interesting. One is the pro-
vision relative to use of the canal by
railroad ships. The other is the
provision for free tolls for American
ships in the coastwise trade. But to
make the situation the more Of mo-
ment. Great Britain has protested to
this government against free tolls for
American ships and an acute diplo-
matte situation has been precipitated.
The consideration of the bill will
therefore determine whether this coun-
try, more particularly congress, Is go
ing back down before British diplom-
acy or whether it will call the bluff
London has seen fit to make.
House Bill Amended.
The house bill relating to the regu-
iation Of the Panama canal was
amended in a number Of important
particulars by the senate committee on
interoceanic canals, Of which Senator
Brandegee is chairman. but the bill.
which is on the calendar and Is to be
made the unfinished business after the
sundry civil bill is out of the way, was
submitted without a report from the
committee. While amendments we're
adopted by majority votes in number
of instances. majority could not be
-ound to stand for the bill as amended
and SO its making Is entrusted to the
senate, which will PROBABLY debate the
questions suggested at considerable
length.
The bill as II passed the house gives
vessels engaged in the coastwise trade
free passage thru the canal and pro-
hibits steamships which are owned or
controlled by railroads from using the
canal. The bill as II came from the
senate committee on tnteroceanfc
canals extends the provision for free
passage TO American ships in the for
eign trade. provided the owners Of such
vessels agree that they may be taken
and used by the government in time OF
war or other public emergency. and
allows railroad owned ships engaged
in foreign trade to also carry coastwise
commerce thru the canal provided that
at least half of their cargo. in tonnage.
is destined to or shipped from ORR
entail or European ports.
Interesting Debate Expected.
Upon these provisions. as lively and
interesting debate as the senate has
listened to in years may be expected
IN my opinion tn Panama bill should
be amended in the senate to conform
to the house BILL said Senator George
E Chamberlain, of Oregon. today.
"Coastwise vessels should be per-
mitted TO use the canal without the
payment OF tolls, but this privilege
should not be granted TO steamships
owned by railroads or by companies
the stock OF which is owned in whole
or in part by railroads.
IF railroad companies are permitted
to operate steamers thru the canal and
engage IN coastwise traffic in competi-
ton with Independently owned steam
ship companies, the result will newt
ably be that by reducing rates below
remunerative basis steamships
owned by railroad companies will drive
the Independent companies out Of busi-
ness entirely and leave the railroad
companies to fix the transcontinental
rates. at figures that will not only COM
pensate for carriage but for losses sus-
tanned by their steamers.
This has been the history Of trans
portation on both the Atlantic and
Pacific coasts and railroad companies,
have for years operated steamers at .
loss, driving independent lines out Of
business and fixing arbitrary rates for
interstate and all continental traffic.
1T is part Of the history Of the
Pacific coast that the Southern Pacific
Company and other transcontinental
roads have operated steamships on the
Pacific, between Panama and points
north at heavy expense and yet have
been able to recoup these losses by ex-
cessive rates by rail.
| Railroads Control Transportation.
Not only has this been the history
on the Pacific coast, but 1t il the his
tory Of transportation wherever nav
igable waterway Is paralleled by lines
of rail. Whenever an Independent
company undertakes to operate steam
ers on such waterways in competition
with railways these latter companies