The Washington times., 1912-08-15
AMERICAN VESSELS
IN FOREIGN TRADE
DENIED FREE TOLL
Conferees Reach Agreement
on the Panama Canal
l. ~ Ril1

The Senate and House conferees on
the Panama canal bill have reached an
agreement on that measure, which is
now awniting the final Legislative
touches in the two branches Of Con-
gress. The conference report eliminates
the Senate amendment extending free
tolls to Americans ships engaged In
the foreign trade; provides free tolls
for vessels in the coastwise trade of the
United States; grants American regis
try to vessels built abroad for use only
in the foreign trade; and divorces rail-
road and steamship lines by giving the
Interstate Commerce Commission au-
thority to bring about such a divorce
ment. Trust-owned ships are excluded
from the canal.
Senator Brandegee and Congressman
Stevens, two Of the conferees will Lot
sign the report. The report is signed
by Senators Bristow and Simmons and
Congressman Adamson and Sims.
The House receded from the greater
number of amendments, but many OF
them were of minor Importance, and
the bill as 1t comes from conference
more closely resembles the House bill
than the amended Senate bill.
Bills Important Features.
AS agreed upon in conference the car
dinal features of the Panama bill ale
as follows:
Vessels engaged in the coastwise trade
Of the United States may enter the
canal without the payment Of tolls.
American-owned vessels engaged in
the foreign trade are not accorded this
concession.
The American registry Of foreign
built vessels owned by Americans Is
authorized.
The conferees added a provision that
material for the construction or repair
of vessels built in the United States
shall be admitted free of duty under
such regulations as the Secretary of the
Treasury may prescribe.
Section II, which provides for the di-
vorcement Of railroads and competing
lines, was rewritten in conference and,
as agreed uponf closely follows the
original House provision. AS rewritten
this section not only prohibits the use
Of the canal to railroad-owned ships,
but provides that a railroad-owned
steamship shall not be operated through
the canal "or elsewhere"
Point Is a Compromise.
The action of the conferees in eimin-
ating from the bill the amendment ex-
tending free tolls to American ships en-
gagged in the foreign trade is probably
the most vital compromise reached in
conference. If this amendment had re-
mained in the bill it doubtless would
have accentuated the objection raised by
Great Britain to an alleged discrimina-
ton in favor of ship owners.
On the other hand. the conferees were
agreed that no complaint could lie
,;~t@,
to American vessels engaged in the
coastwise trade, inasmuch as these ves-
sells now enjoy a legalized monopoly
and are not construed as coming within
treaty prohibitions.
Second In importance to the free tolls
provision Is the revision Of Section II,
lows:
From and after the first. day of July,
1914. 1t shall be unlawful for any rail-
road company or other common car
rier subject to the act to regulate COM
merce (of 1850 to own, lease, operate,
control, or have any interest whatso-
ever (by stock, ownership or otherwise.
either directly indirectly. through any
holding company or by stockholders or
directors in common or any other man.
ner) in any common carrier by water
operated through the Panama canal, or
elsewhere, with which said railroad or
other common carrier aforesaid does or
may compete for traffic or any vessel
carrying freight or passengers upon
case Of the violation Of this provision
each day in which such violation con-
tinues shall be deemed separate Of
fense."
To Determine Questions.
II is provided that the Interstate Com
merce Commission shall have jurisdic-
ton to determine questions Of fact as
to competition or possibility of conn.,
petition, and the decision of the Com
missioner shall be final.
The commission, III it shall be of the
opinion that any such specified existing
service by water, other than through
the Panama canal, Is being operated
in the interests of the public, and ia
the advantage of the convenience and
commerce of the people, or that such
service neither prevents nor excludes
competition" Is given authority to ex-
tend the time in which such service
is14.
Equally as drastic is the conference
closing the canal to ships whose. own,
ers are doing business in violation ol
the Sherman antitrust law.
The Reed Amendment.
As revised In conference, the Reed
amendment applies to vessels engaged
In the foreign trade as we'll as those
engaged in the coastwise trade of the
United States.
The section provides that mo vesse
permitted to engage in the coastwise o.
foreign trade of the United States shal
be permitted to enter or pass through
said canal IL such ship is owned, chart
cred, operated or controlled by any per
son or company which is doing business
lp- violation Of the act of Congress o
July 2, 1890"
The question of fact, it is provided
may be determined by any court of tn
United States having jurisdiction, an
suit may be brought by any shippe
or by the Attorney General OF tn
United States.
Minrsoanrsnc MaM Re