The Kenna record. (Kenna, Roosevelt County, N.M.) 190?-1924, 1912-12-13
PANAMA CANAL TOLL BILL Wos
LATEs THE HAY-PAuNcEForE
TREATY, IS THEIR CRY.
they PROPOSE TO ARBHRATE
~crmal Note Sent to Secretary Of
state-Fear Bill Might Be Applied
70 American Ships in Foreign
Trsde-Taft Is Wrong,
Says Grey.

Washington, Dec. 10.-Great Brit
aims formal note of protest against
that section of the Panama canal act
which exempts American coastwise
shipping from payment of tolls for
passing through the Panama canal, a
document written by Edward Grey,
British minister of foreign affairs, was
presented to the secretary of state,
Philander c. Knox. tonight by the
British ambassador, James Bryce, who
read the note word for word to the
secretary at the latter's home. 1t is
an elaboration of the points of objec-
ton in the note presented to the state
department last July.
In brief these objections are:
That while it was clearly in VIOLA
ton of the Hay-Pauncefote treaty
either to remit or refuid tolls on all
American shipping using the canal,
the same objection probably would APP
PLY to the coastwise shipping owing to
the impossibility of framing regula-
tions that would not result in a prefer
ence to American shipping.
III dOOAllOu W ouppOlllh6 lhOoV
points by long arguments, Edward
Grey indicates very clearly that strong
resistance will be offered to any at
tempt to exclude from the canal Brit
ish ships owned by Canadian railroads
or whose owners may be guilty of VIC
lating tn Sherman antitrust act. He
holds that this section of the act can
not apply to British shipping, but only
to United States vessels. He also IT,
dicates in his note that underlying the
objection to the exemption from toll
of American coastwise ships is an ap-
prehension that in the future the prin-
ciple might be extended to cover
American ships in foreign trade.
Otherwise the note is devoted almost
entirely to an effort to demonstrate
that any such exemption of American
shipping as proposed is in direct con-
fliet with the terms of the Hay
Pauncefote treaty and that President
Taft was clearly wrong when he-took
the contrary view
Generally, the British note might be
summed up as a clear definition of the
difference between the two govern
ments regarding tile construction Of
the Hay-Pauncefote treaty, winding
up with a proposal that the issues
should be settled by arbitration, pro-
vided that they cannot be adjusted by
mutual agreement for which way re-
mains open.
Secretary Knox promised to take the
matter under careful consideration,
which he felt would require some time.
1t has been strongly intimated in Off
cial circles, however, that it was the
presidents intention to settle this i'm
portant qeustion before closing his ad-
minlstration. Sir Edward Grey begins
his note with the staement that the
president does not fully appreciate the
British point Of view. and has misun-
derstood even the note Of July 8. He
says it is not the case that the British
government seeks to prevent the Unit
ed States from granting subsidies to
its own shipping passing through the
canal, nor does it seek to deprive the
United States Of any liberty which is
open to either themelves or to any
other nation, to encourage its own
, shipping or own comemrce by subsi-
dies.