New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-12
Lines Drawn for Great DipIo-
matte Struggle Over the
Question of Tolls on the
Panama Canal.
MAIN POINTS IN DISPUTE
Great Britain Holds Pending Bill
Is Contrary to Treaty, and
the United States Takes
Directly Opposite
View. G
From The Tribune Bureau.1

From The Tribune Bureau.1
Washington, July 11.-Great Britain'a
note Of protest against the provision for
free tolls for American ships in the pend
ing Panama Canal bill. which was fore
cast in The Tribune this morning.
reached the Department Of State to-
day and was promptly sent by Secretary
Knox to Senator Brandegee, who has
charge of the bill.
With the receipt OF this note the
lines were drawn tonight for a great
diplomatic struggle between the United
States and Great Britain over the ques-
ton Of whether this country may dis
criminate in favor Of American vessels
in the administration of the Panama
Canal. The wordy war may terminate
in the submission of the question TO the
Hague tribunal.
series of diplomatic and legislative
conferences to-day developed that the
forces in the American government
which favor allowing American ships
free passage through the canal are In
control. These forces take the ground
that there is nothing in the Hay-Paunce-l
fote treaty, under which the canal was
built, to prevent this concession.
Points at Issue.
I The diplomatic struggle. it is expected,
will be fought along the following lines'i
Great Britain will hold that the Hay-'
Pauncefote treaty provision which for
bids discrimination in favor Of the IN
terests OF any nation in the conduct OK
the canal would operate against the pros,
visions of the Panama bill now Under
| consideration in the Senate. This posi-
ton will be supported by long argu-
ment now on its way from London by
mail.
The United States will hold that so
long as the ships of all foreign nations
are accorded the same treatment in the
use of the canal the United States may
pass American ships free. or rebate the
tolls charged them. This attitude was
taken by the House when 1t reversed the
report of the House Interstate and For
eign Commerce Committee. which would
have prevented free passage 10 Anfcri-
can ships. and passed the present bill.
The British protest appears TO have
aroused some opposition In the Senate.
where il is generally believed the cor
tention that the pending provision is
violation Of the Hay-Pauncefote treaty
cannot be sustained. Senator Lodge ana
other authorities on international law
maintain that il vessels engaged in the
coastwise trade are required TO pay the
tolls into the Treasury and they are SUBJ
seauently returned TO the vessel owners
they will be essentially subsidies. ana
cannot by apv reasonable construction
be regarded as in violation of the treaty.
Secretary Knox Is understood 70 be-
lieve that the remission OF the tolls 10
American ships engaged In the coastwise
trade would not constitute violation OF
the treaty, and this view is shared by
Secretary Stimson, who has given the
matter considerable study, because he Is
in charge of the Panama Canal secre-
tary Stimson believes that in order TO
avoid all appearance of violation OF the
treaty the method of requiring vessels 10
pay the tolls, with provision for their
subsequent remission. should be adopted.
Mr.. Knox is understood 10 regard the
method of comparatively little impor-
tance, as in either case such a remission
would amount to a subsidy. which this
government is entirely at liberty to give
TO its vessels.