New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-11
Taft, Backed by Republican
Senate Leaders, to Urge Ar
bitration if Negotiations Fail.
DEMOCRATS ARE HOSTILE
impartial Tribunal Impossible,
Says 0'Gorman-House Move
to Repeal Canal Free
Toll Provision.
From The Tribune Bureau.1

81 by the administration nor by the Menu
bers OF Congress. II was remarked In adj
nninistratlon circles. however, that so far
as known The Tribune was the only news
paper which pointed out this morning The
one material fact in the protest, namely
the admission that the United States
could not be precluded from granting such
encouragement to it's own shipping as it
deemed wise.
Similar comment was heard IN diplo-
matte circles, where the opinion was eau
tiously expressed that in view Of Great
Fritain's recession from her first position
a settlement Of the problem by diplomatic
methods probably would ensue. and that
the negotiations would follow pretty
closely the lines indicated in The Tribune
this morning.
II is appreciated that with some clever
ness the British Foreign Secretary by
hIs protest has emphasized the fact that
remission of the tolls 10 the coastwise
shipping is simply a subsidy, although
called by another name, and the wisdom
Of tHlss step is shown by the action Of
Representative Sims, Democrat, who an
nounced to-day that he would press his
bill on the ground that 1t constituted a
subsidy, to which policy the Democracy is
unalterably opposed.
President Would Arbitrate.
in view of the conflicting reports on
the subject. il seems necessary to repeat
what was said in these dispatches this
morning, that President Taft will I'M
f.ly eli tn,
to submit the case to arbitration II diplo-
matte negotiations fail. without the slight
est regard to the chances of final decision
being against the United States. In this
he will have the support OF some of the
abiest men IN the Senate, men who think
az well as talk. and among them Senators
Root, Burton and Lodge. There is strong
hope in administration circles. however.
that such a step will not become neces-
sary, as It is realized that 1t would he al
most impossible 20 induce two-thirds OF
the Senators 10 ratity the necessary
''compromis, wholly irrespective OF tho
eblisa lions Of the United states.
Another point in the British protest
which Is certain TO command some atten-
ton in view of the assertion Of certain
Senators that the question Of free tolls to
coastwise ships is solely domestic mat
ter, Is the skill with which Sir Edward
Grey sets forth that under existing
American law there is nothing TO prevent
xhIps engaged in the coastwise trade from
! carving goods for foreign destination
and that therefore their traffic cannot
properly be treated as essentially do
nestle
with the usual deliberation which at
tends the conduct Of foreign affairs.
neither the President nor the Secretary of
State had read the British protest at the
close Of to-day. except Of course, as the
British Ambassador had, pursuant to his
instructions. read il aloud 10 Mr.. Knox
Yesterday. Nor was the subject discussed
at to-day's Cabinet meeting, both the
President and Mr. Knox preferring not to
discuss IL until they had had an oppor-
tunIty TO give the document the quiet
and uninterrupted reading IL deserves.
Both are most hopeful, however, of set
Element Of the points at issue by diplo-
matte methods.
To Oppose Higher Tolls.
II is the expectation of Great Britain
that any settlement will be followed py
legislation Of some character, and that
,uoyernment will unquestionaby insist
pursuant 70 the contention that the tohs
,nhposed on foreign shipping should not
Be made higher by reason Of the eXemp-
ZION OF American ships on an assurance
that. as the income of the canal increases
,he tolls will be lowered without regard
10 any deficit due 10 exemption OF Ameri-
can coastwise ships AS has been pointed
Oft In these dispatches, there is woe
Discrepancy between tolls which would
meet the cost Of maintenance, the inter
es, an the investment and proper allow
ance for a sinking fund and the esti-
mated income. and it Is likely TO be long
limo before any lowering OF the tolls
would prove practicable.
However. if Great Britain shall ulu-
r,ate,v WELD to the argument Of the United
states that remission OF the Tolls is mere
IN form OF subsidy, and therefore WIN
IN the rights Of the United States as uu-
,,itted by that government. it Is prooaDle
that President Taft will render such as
xurance as is in his power that IN the
bookkeeping of the canal the amount Vi
she tolls RENTED shall always De taken
into consideration precisely as II theS
~.rs collected and returned In the form
"a n subsIdy. and that such remission
.hsil at no time operate as factor 10 IN
seuase the tolls on foreign shipping or 10
,palntain them at a higher rate than
would be necessary were all American
shinx 10 contribute their share 10 the IN
come OF the waterway.
II is not deemed probable that even IL
anal adjustment of the dispute is erected
during this administration any legislation
needed 10 carry II into effect can De
nassed before March 4. In view OF the
Democratic hatred Of all forms of SUBSIDY
however. the required legislation might be
all the more easily passed after March a.
nor would 1t prove the occasion OF great
surnrise. II, once the Democrats controi
both houses of Congress, their innate
borror OF subsidies should lead them to
repeal the debated section OF the Panama
Canal bill.
Senate Views Unchanged.
The views of Senator's have undergone
LITTLE change as result OF the British
protest, a fact which. may be due In some
measure to the further fact that few Sen
atoss have read It. but which is also due
10 the fact that the protest had been an"
t,cinated at the time the canal bill was
rassed and the measure az approved by
AL