Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-12-10

The argument advanced in the United
States Senate that the words III ma
tons cannot include the United States,
which would, otherwise be prevented
from using it's own territory for re-
victualling its warships or landing troops.
is briefly dismissed by the statement that
it is completely overturned by a reading
of the Hay Pauncefote treaty in connee
ton with the Suez canal conventions. As
the United States did not own the canal
zone when the HayPauncefote treaty
was made, it did not include the Suez ca
nal rules which recognized the right of
Turkey. the local sovereign. and OF
Egypt to take such measures as might be
necessary for the defence of her posses
sions. Sir Edward continues: Now that
the United States has become the practi-
cal sovereign of the canal His Majes-
tvs government may not question its Ii
tie to exercise belligerent rights for its
! protection" 60
The next point made is that the exemp-
ton of American eoastwise shipping from
tolls would violate the undertaking that
the tolls should be Gust and equitable. "
Unless the whole volume of shipping
passing through the canal is taken in
to account there are no means of de-
termining whether the tolls charged
upon any particular vessel represent
her fair proportion of the current ex-
penditure properly chargeable against
the canal. There is no guarantee that
the vessels upon which tolls are be-
ing levied are not being made to bear
more than their fair share of the up
keep. Therefore, the British govern
ment is entitled ITO demand on be-
half of British shipping, that all ves-
sells passing through the canal, what
ever their flag or character. shall be
taken into account in fixing the
amount of the tolls
Regarding the Presidents contention
that the effect of the British claim
will be to prevent the United States
from aiding it's own commerce in a
way that ali nations may freely do, it
is said that this is not so. Equal
treatment as specified in the treaty
lis all that the British government
claims. But it does not follow that the
United States may not be debarred
by the treaty from granting sub
sidy to certain shipping in a particular
way if the effect would be to impose
upon British or other foreign shipping
an unfair share of the burden of the
upkeep of the canal, or to create a
discrimination or prejudice.
Therefore, it is held that the exemp-
ton of the American coastwise ship
ping, as well as of Panama shipping,
clearly conflicts with the treaty guar
antees of equal treatment for British
and American ships. and that the in
| terests of foreign nations would there
| by be seriously injured in two re-
| spects: First, in placing the entire
\ cost of the building of the canal upon
foreign vessels and second in placing
| the American coastwise trade in a
preferential position as regards other
shipping. Thus, it might be that cargo
| intended for a United States port be-
yond the canal in either direction
shipped on a foreign ship, could be
sent to its destination more cheaply
! BY being landed at a United States
lport before reaching the canal and
thence forwarded as coastwise trade
American vessels might also combine
foreign commerce with coastwise
trade, American vessels might also
combine foreign commerce with coast
wise trade, thereby entering into di-
reot competition with foreign vessels
while they retained the right of free
passage through the canal The adj
verse results. would fall more severely
on British shipping than any other
The British government does not reat
1.-THE section of the Panama canal ac'
prohibiting railroad-owned or trust
lowned ships from using the canal al
Applying to or affecting British ships
but it is said that if this view is mis-
taken ",rhey must reserve their RICH
to examine the matter further ant
to raise such contentious as may seen
Justified
In conclusion, Sir Edward re-assert
his governments assertion that thu
provisions Of the canal act as to toll
conflict with the British treaty rights
land adds:
| But they recognize. that many per