The Sentinel=record., 1912-08-25
PRESIDENT APPROVES PANAMA CANAL, PosToFFIcE AND WAR
 DEPARTMENT BILLS.
VETOED COOSA RIVER BILL
Sends Lengthy Memorandum to Con gress Urging the Passage of His Resolution on Panama Canal
 Tolls and Regulations.


 Washington. Aug. 24-President Taft signed the Panama canal bill a. 7:l0 o'clock tonight. Following this, he sent to congress a memorandum suggesting the advisability of tthe passage of resolution which would declare that this measure was not con sidered by this government a violation of the treaty provisions regarding the canal
 The president argued that if there is nothing in the Hay Pauncefote treaty preventing Great Britain ana other nations from extending fayors to their shipping using the canal, and If that is nothing giving the United States power or right to complain of such action. then the British protese leads to the absurd conclusion that this government. in constructing the canal, maintaining the canal and de- lending the canal, finds itself shorn Of lts right to leal with it's own com n.erce in its own way while all other nations using the canal in competi- ten with American commerce enjoy that right and power unimpaired.
 The British protest, therefore. is q proposal to read into the treaty a' surrender by the United States of it's right to regulate it's own commerce. right which neither Great Britain herself, nor any other nation that may use the canal. has surrendered cr proposes to surrender"
 The president dissents from the View that permission to register foreign built vessels as vessels of the United States for foreign trade and the admission without luty If ship materials will interefere with the ship building interests of the United States He approves the amendment of the interstate com merce act, whereby railroad com paniea are forbidden to own or con tlol ship operated through the canal
 He also approves the provision which prevents the owner of any steamship who is guilty of violating the anti-trust law, from using the canal
 In discussing the British protest, Taft says the irresistible conclusion to be drawn from 1t is that, "althohgh the United States owns. controls and las paid for the canal, it is restricted by treaty from aiding its own com merce in the way that all the other nations of Inc world freely do'
 "In view Of the fact Mir. Taft con tinues. "that the Panama canal is being constructed by the United states wholly at its own cost upon territory ceded to it by the republic c. n,oar,o fnr thaf nt4ppoea and that unless it has restricted itself, the United States enjoys absolute rights of ownership and control including the right to allow it's own commerce the use of the canal upon such terms as 1t sees fit, the sole question is:
 Has the United States (by terms of the Hay Pauncefote treaty. depriy- ed itself of the exercise of the right 10 pass it's own commerce free, or to remit tolls collected for the use If the canal"
 The president points out that the rules specified in the article ot the treaty, which is made the basis for the British protest were adopted by the United States as the basis of the naturalization of the canal and for no other purpose" This article, he further said, lis a declaration Of policy by the United States that the canal shall be neutral. that the at tctude of this government towards the commerce of the world is that all nations shall be treated alike, and nc discrimination made by the United states against anyone of them ob serving rules adopted by the United States. In other words, 1t was coa- eitional favored nation treatment, the measure of which is not what the country gives to it's own nationals but the treatment it extends to other nations
 Thus. it Is seen, that the rules are but the basis of naturalization in tended to effect the neutrality which the United States was willing should he the character of the canal and not intended to limit or hamper the United States in the exercise of its soverign power to deal with its own commerce, using its own canal in Whatsoever manner it saw fit'
 After notification to the house to- night that President Taft had signed the Panama bil, Representative Sims Of Tennessee, ranking member of the house interstate commerce commit tee. introduced hil repeating the proSioion of the jaw providing for free tolls of American ships engaged in the coaatwise trade Mr Sims explain. cd that the bill had the endorsement
 CONTINUED ON PAGE FINE.