The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-03-04
PREFERENTIAL RATE on REBATE
TO AMERICAN sRirs Ap-
vIsED BY HIM.
THIS is PRECEDENT
SUBJECT. HE STATES, Is VITAL TO
FUTURE OF AMERICAN
MERCHANT SHIP.
rISG.
by CHARLES NACEL.
Secretary of the Department Of Com
nlerce and Labor

nlcrce and Labor.
WASHINGTON, March "a pre-
ferentiai rate OF toll or rebate 10
American ships passed through the
Panama canal is in line with pol
icy long since established by the
United States.
The vast sums appro pgieted for
the Panama canal do not differ in
principle for tho expenditures for
other canals, locks. rivers and SINH
lar Improvements in American ter
ritory-
Under the statute of 1884 neither
tolls nor operating charges may be
levied against American ships pass
ing through such canals or water
ways. 1t seems consistent 10 me,
therefore that a similar rule should
be adopted, at least so far as coast
wise vessels are concerned, to the
Panama canal
The treaties under which the canal
is being constructed provide that ev-
cry nation shall contribute with mo
discrimination" TO the support Of the
canal in proportion to the use Of Il
makes Of the canal. That principle
wilt OF course. be observed. At the
sanIe TINE The purpose of section
S. 1884. may be preserved in the most
important engineering work that we
have ever undertaken.
ifaintg TUay ~ accomplished Try the
enactment OF a law which shah pro-
vide that all tolls and transit charges
which may he imposed on public ves-
sells Of the United States and on mer-
chant vessels of the United States for
passage through the Panama canal
shall be paid from any money In
-fiT t-eHsuTy- uttJrrw1Eg gVVro-
prsated and that there shall be APP
propriated annually out OF any
Iaeats In the treasury not otherwise
appropriated sHeA sums s-may Ire
necessary for the purpose, and that
such appropristion shall be deemed
permanent annual appropriations.
How Suez Tolls Are Paid.
About % per cent. OF the Suez Ca
mai tolls on foreign merchant YES
sells are now paid In some form from
the treasures of the nations whose
Tags those vessels fly. and We may
assume that likewise provisions In al
least some instances viii be made foI
the payment of the tolls that We
shal assess on foreign merchant yes
gels.
Foreign presidents. however. are
merely illustrative. Every State II
the Union with navigable waters cross
ing Its boundaries furnishes prece
dents of congressional appropriations
for the establishment and mainte
nance of improvements at the con
tinuing expense OF the Federal Treas
ury, and without a dollars help from
the vessels which enjoy the advan
tage OF such improvements. Wher
the future OF American shipping I
at stake and the domestic commerc
of both seaboards and the Gulf In in
VOWED there is no apparent reason
10 depart from a principle which ha
been constantly invoked.
Subject Vital
The subject of Panama Canal ton
IS vital to the future Of American
merchant shipping. Our opportunit.
Immediately after tho war with Spain
to adopt reasonable measures to Sc
cure creditable maritime rank wa
neglected. The Panama Canal is he
ing built In the belief that IL wi
benefit all sections of the country an
realy every form OF American In
dustry. Our merchant ships and ship
yards are as essential 10 the nation
AS our battleships. They have n
least d claim to equal considerable
in canal fegisiations and app~opria
lions with other American industrie!
Argument to tax the American mer
chant ship which uses the canal woul'
apply with equal force to tax di
rectiy on American cotton. lumber
fruit. coal, grain and other carg
carried by the ship through the canal
1t is feasible TO use the canal for tn
promotion OF American navigation II
a manner consistent with treaft oh
legations. with precedent at home an,
abroad, and with our fixed policy G
untaxed navigation on improved wa
terways.