Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-12-10
Reply of Secretary Knox
is to be COuChed in
Friendly Terms.
PROTEST CANAL TOLLS
London Newspaper FavorS
Submission of the QueS-
tiOn to the Hague.

Washington. Dec. 10. - Secretary
Knox today got down to a careful study |
Of the objections raised by Sir Edward
Grey to the Panama bill Mr.. Knox
will prepare a reply to the British
note. II will be in the same friendly
tone as was Grey's communication, en-
tirely lacking any elements of belliger-
ency. Today is regular cabinet meet
ing day, and the subject will be up for
informal discussion by President Taft
and the official family.
PURELY PECUNIARY.
II is known the president does not
regard the subject as one affecting the
vital interests OF the United States,
brt rather as Of purely pecuniary con
sequence, and therefore not among
the prohibited subjects mentioned in
the existing arbitration treaty with
Great Britain. Therefore while the
result may not be reached immediate
ly il Is probable in the end the ad-
ndnistration Will hold that the ques-
tipn at issue is clearly an arbitable
one
The next step will be TO negotiate
with the British ambassador with u
view to preparing draft Of an agree
mont specifying the matter TO be ar
hitrated. This necessarily will go to
the senate for approval.
Will REMAIN CONSISTENT.
The administration has no assur-
nncc the senate will approve such an
agreement. but it is understood the
Presidents attitude is he is bound by
the arbitration treaty and feels II his
6uty 10 assume any responsibility and
not pass that obligation along to his
successor.
II is said the president feels that
should the senate withhold approval
az any arbitration agreement he will
have maintained his record as a con-
s.ytent advocate OF the principle of
settlement Of international disputes by
arbitration.
NOTE Is RECEIVED.
Great Britain's formal note OF pro-
test against that section of the Pana-
ma canal act which exempts Ameri-
can coastwise shipping from payment
Of tolls for passing through the Pana-
Edward Grey, British minister for for
eign affairs, was presented to Secre-
tary Of State Knox last night by the
British ambassador James Bryce. who
read the note word for word to the
secretary at the latter's home. II 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 # was clearly in viola
ton OF the Hay Pauncefote treaty
American shipping using the canal,
the same objection probably would
apply 10 the coastwise trade shipping
in view Of the probable impossibility
q framing regulationss that would
not reult in a preference TO American
shipping.
CALL CANADIAN ROADS EXEMPT.
In addition TO supporting these
points by long arguments. Sir Edward
Grey indicates very clearly that strong
resistance will be offered to any at
tempt 10 exclude from the canal Brit
ish ships owned by Canadian railroads
or whose owners may be guilty Of VI
olaung the Sherman antitrust act.
He holds that this section OF the act
cannot apply to British shipping but
only To United States vessels.
Sir Edward also indicates In his
note that underlying the objection 10
The exemption from toll OF American
Coastwise ships is an apprehension
that in the future the principle might
be extended to cover American ships
IN the foreign trade.
Otherwise the note is devoted al.
most entirely TO an effort 70 demon
strate that any such exemption OF
American shipping az is proposed is
in direct conflict with the terms OF
the Hay-Pauncefote treaty and that
President Taft was clearly wrong
when he took the contrary view.
ADMIRATION Is PROPOSED.
Generally, the British note might be
summed up as a clear definition OF
the differences between the two gov
crnmeuts regarding the construction
Of the Hay-Pauncefote treaty, wind
ing up with a proposal that the issues
should be settled by arbitration, pro
vidod that they cannot be adjusted
by mutual agreement for which a way
remains open
Secretary Knox listened attentively
10 the reading of the note and prom
ised 10 lake the matter under care
fui consideration. which he felt would
require some time Il has been strong
" lntmated in Official circles, how