The Owosso times. (Owosso, Mich.) 1897-1926, 1912-12-13
Formal Statement Presented to
Secretary of State Knox.
VIEWS OF SIR EDWARD GREY
Right Of United States to Grant Free
Passage Of Canal to It's Own
Vessels Held to Violate
Treaty Agreement.

Washington, Dec. 10. = Formal de
| mand upon the government OF the
| United States either to repeal the act
OF congress granting free passage
through the Panama canal to Amer.
lean ships engaged in coastwise trade
or the submission of the controversy
to arbitration was made by James
Bryce, ambassador of Great Britain,
In lengthy statement presented to
Secretary of State Knox.
Thinks Treaty Rights Violated.
The statement, which bears the
signature Of Sir Edward Grey, British
foreign affairs minister, is an ampli
fication OF the original note OF pro
test presented by A. Mitchell Innes,
British charge d'affaires. on July s
last. 1t endeavors to establish by
argument the soundness of the Brit
ish contention that the legislation ia
voring American ships is in violation
of the treaty rights of Great Britain
with regard to the Panama canal.
The note further gives warning that
another protest will be Forthcoming
from Great Britain il it is held by the
government of the United States that
the disbarment from the use of the
under the jurisdiction of the inter.
state commerce commission has an
interest and ships whose owners may
be adjudged guilty of violating the
Sherman antitrust laws, apply to
British shipping. The note states
that the British government now as
sumes that these two clauses do not
apply to or affect British ships.
Would Consent to Arbitration.
In regard to arbitration it is stated
that the British government has TAX
en- cognizance of the fact that many
persons of note in the United States,
whose opinions are entitled to great
weight, hold that the act of congress
in question does not infringe the
treaty obligations of the United
States and, therefore, 1t is declared
the British government is perfectly
willing to submit the question to ar.
bitration if the United States prefers
This significant sentence is added
however: "A reference to arbitra.
ton would be rendered unnecessary
il the government of the United
States should be prepared to take
such steps as would remove the OBJ.
jections to the act which his males
tvs government have stated"
Though neither the president nor
Secretary of State Knox have ever
made any declaration as to whether
the United States would be willing
to submit the controversy over canal
tolls to arbitration, it has been gen.
orally assumed that this government
would refuse to arbitrate the dispute
with Great Britain.
Right to Grant Subsidies Not Denied. |
Sir Edward Grey, in the note pre-
sented to Mr.. Knox, hastens to deny |
that the British government is az.
tempting to deny the right of the |
United States to grant subsidies to its |
shipping, and thus deprive it of the |
same rights enjoyed by other nations |
and which will send subsidized ves- |
sells through the Panama canal
The British argument on the main |
point at issue rests chiefly on two |
points. The first is that in the inter
probation of the Hay-Pauncefote trea-
ty of 1901 it 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 proper share of the bur-
den of the cost of the upkeep of the
canal and interest charges on its cost
Of construction. This, it is claimed,
Is in violation of the clause of the
Hay Pauncefote treaty, which dc.
clares that all charges made by the
United States for the use of the canal