The Birmingham age-herald., 1912-07-13
English Letter Outlines Pro- test in Panama Canal
 Question
MATTER WILL BE
 LEFT TO CONGRESS
Adamson Says the Matter of Free Tolls to American Ships Should Have Been Left From
 the Bill

Washington. July 12-The Senate was officially notified of the British protest against the Panama canal administration bill tonight when Secretary of State Khox in letter to Senator Brandegee chair man of the Senate interoeeanic canal com mission. outlined the objections raised by Great Britain. The letter. paraphraslng the protest by Charge D'Affaires Inness. was generally accepted as voicing the decision of the state department to leave the entire matter in the hands of Con- gress. where the legislation in dispute is now pending.
 Secretary Knox's letter follows:
 Sir have the honor to bring to the knowledge of your committee the fact that a communication dated the sth inst, Just received from the British charge q d'affaires. indicates that the attention of the British government having been called to various proposals from time to time made for the relieving of American shipping from the payment of tolls on vessels passing through the Panama ca nal, that government has studied csre- fully those proposals, and the arguments in support of them. with view to the bearing thereon of the provisions of the treaty between the United States and Great Britain of November IS. 1901. The communication sums up the proposals mentioned as: CD To exempt all American shipping from tolls. @ One to refund to all American ships tolls which they might pay; (3) One to exempt from the pay ment of tolls of American ships engaged in the coastwise trade, and ti) One to re pay to the last named class of Ameri- can ships tolls which ,ney might pay The communication indicates 1t to be the opinion of his Brtannic majesty government that to exempt all Ameri can shipping from the payment of tolls would involve an infraction of the treaty and indicates further the opinion thai there would be no difference in princpl, between charging tolls only thereafter tc | refund them, and remitting such tolls | altogether. The opinion is expressed that the method of charssng but refundinl 1 tolls. while perhaps complying with ths letter. cf the treaty, would stll contra yene its spirit. The communication ad
 mits that there Is nothing in the Hay | Pauncefote treaty to prevent the United States from substituting it's shipping but claims that there is u great distinction between a general subsidy either to prog ress at large or to shipping engaged ii any given trade. and subsidy calculated particularly with reference to the amount of use of the canal by the subsidized lines or vessels. Such subsidy, if granted, would not, in the opinion of his Britannic majesty's government. be In accordance with the obligations of the treaty
 with respect to sne proposal that exemptions shall be given to vessels en- gagged In the coastwise trade, the com munieation states that if may be that no objection could be taken if the trade should be SO regulated as to make 1t certain that only bona hde coastwise traffic is reserved for American vessels would be benefited by this exemption; but that it appears to his Britsnnic ma jestys government that 1t would be im- possible to frame regulations which would prevent the exemption from resulting in preference to American shipping and consequently in an infraction of the treaty"
 Not Time for the Question
 The state department has taken the attitude that the protest of the British government against free American ships
 Is not properly a matter for diplomatic treatment at this time. The note out lining the British objections, now on its way from London, undoubtedly will be transmitted immediately to the Senate and the state department probably will make no reply except a formal acknowl- edgement of the recei>t of the communi- cation.
 Chairman Adamson of the House com mttee on interstate and foreign com merre, tonight asserted that the matter cf f~ee tolls to American ships. and of discrimination against the railroad owned
 ips nassing through the canal should hs~e been eliminated from the pending bill
 sif there should be any delay in the legislation to open the canal the fault cannot be laid at our door" he said We urged that in this matchless en- terprise the government be allowed to demonstrate the results of its work by opening the canal unhampered by the demands of special interests. If the rep resentatives of those interests had con scented we would have omitted those pro visions both as to railroads and exemp- ton, of American ships from tolls and authorized the President to open the canal'
 Adamson's Views
 Chairman Adamson contended that the question of free American ships and the railroad-owned vessels problem should have been dealt with separately in direct legislation. The Senate leaders behind the Panama bill were firm in their opin- ions that the measure would be taken up as soon as 1t reached the regular order of business in the Senate The British protest. however undoubtedly will open the flood gates of oratory both for and against the bill and will pro- long its consideration
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