Perth Amboy evening news., 1912-12-10
To ARBITRATE
CANAL MATTER
England Presents Formal
Protest Against Tolls.

Washington, Dec. 10.-The govern.
ment Of Great Britain presented to the
United States its formal protest against
granting Of free passage through the
Panama canal of American ships en-.
gagged in the coastwise trade. The pro
test is in the form Of a note written
by Sir Edward Grey, the British min.
lister of foreign affairs. Ambassador
Bryce read 1t word for word to Secre
tary of State Knox, and at about the
same time 1t was read In parliament
at London by its author.
The statement. which bears the sig.
nature OF Sir Edward Grey. British
minister Of foreign affairs, Is an ampli
ficatioD Of the original note Of protest
presented by A. Mitchell lines. British
charge d'affaires. on July 6 last. 1t en-.
den yors to establish by argument the
s%oundness IF the British contention
that the legislation tavoring American
ships is In violation OF the treaty rights
of Great Britain in regard to the Pan.
ANA canal.
The note further gives warning that
another protest will be Forthcoming
government Of the United States that
the disbarment from the use of the
canal of ships In which any railroad
under the jurisdiction Of the interstate
commerce commission has an interest
and ships whose owners may be ad
judged guilty of violating the Sherman
antitrust law. The note states that
the British government now assume
that these two clauses do not apply tc
or affect British ships.
Significant Sentence.
In regard to arbitration 1t Is stated
that the British government has taker
~cognizance Of the fact that many pc.
sons Of note in the United States whose
opinions are entitled to great weigh
hold the act of congress in question
does not infringe the treaty obligation
of the United States, and therefore II
is declared the British government Is
perfectly willing to submit the ques-
tor to arbitration If the United States
prefers. This significant sentence is
added. however:
"A reference to arbitration would be
rendered unnecessary If the govern
men Of the United States should be
prepared to take such steps as would
remove the objections TO the act which
his majesty's government has stated"
Though neither the president nor Sec
rotary Of State Knox have ever made
any declaration as to whether the
United States would be willing to sub
NIT the controversy over canal tolls to
arbitration. 1t has been generally as
sumed that this government would re
fuse to arbitrate the dispute with Great
Britain.
Sir Edward Grey, in the note pre-
sented to Mr.. Knox. hastens to deny
that the British government is at
tempting to den. the right of the
United States to grant subsidies to Its
shipping interests and thus deprive it
OF the same rights enjoyed by otheI
nations and which will send subsi
died vessels through the Panama ca
nal.
The British argument on the main
point Mt issue rests chiefly on two
points. The first is that in the inter
probation Of the Hay Pa%uncefote
treaty of 1901 1t must be considered
with the Clayton-Bulwer treaty OF
1850. which it superseded. The second
main point Of the argument. is that If
any American ships are granted the
free use Of the canal British ships
using the canal will be forced to bear
more than a proper share of the bur
den Of the cost of the upkeep Of the
canal and interest charges on It's cost
of construction. This. it Is claimed, is
in violation of the clause of the Hay.
Pauncefote treaty, which declares that
all charges made by the United States
for the use Of the canal shall be Just
and equitable.
To Protect British Trade.
1t is stated In the note that the vol
m of British shipping which will
use the canal will he very large and
that 1t is just al important to Great
Britain to protect tie interest Of that
shipping us 1t Is for the United States
to encourage It's mercantile marine and
establish competition between coast
wise traffic and transcontinental rail
ways.
The note concludes with the state
ment that Great Britain appreciates
the emotion with which the opening
NJ tho canal IN iOOkAd rwo ri 70 hv
citizens Of the United States and that
It Ia only with the greatest reluctance
that 1t has felt compelled to raise these
objections to the act of congress re-
gardinX tolls. The objections. II Is de.