The Washington herald., 1912-03-10
NEW CANAL BILL
REACHES HOUSE
Autocratic Rule and Non.
preferential Rates Pro-
Vided for Panama.
COMBINES UNDER WATCH
Heavy Fine Provided Where Rail.
ways and Steamship Lines En-
ter Rate Agreement.

The bill providing a form of govern
ment for the Canal Zone, prescribing rates
of toll on traflc passing through the canal,
and authorizing the President to open.
operate. and make rates for the manage
ment Of the waterway. was completed yes
terday by the House Committee on In
terstate and Foreign Commerce. Three
features of the measure stand out con-
spicuously:
First-The President is given sutocratic
power on the Canal Zone and in the man.
agement Of the waterway.
Second-The Jmmittes has gone on
record as opposed 10 making the canal
free to either foreign or domestic ship
ping.
Third-The only restrictions as 10 the
use OF the canal are laid on American
ships. which when owned or controlled
by combinations in restraint of trade
are to be denied admission TO the water
way.
President Fixes Tolls.
From a commercial standpoint the
most important provision OF the bill is
that Of tolls. The President is empowered
to levy tolls at his discretion. but it is
provided that the maximum rate shall
not exceed SIS per net registered ton.
A minimum rate, to be fixed by the Pres
ident. not below an amount sufficient
TO maintain and operate the canal, is
provided.
Steamship lines owned or controlled by
railroads may use the canal, but there
is a provision that such use shall not
have the effect OF suppressing compeu-
tion.
No Preferential Rates.
The I'm .,,-,-o..l,. ,,roL;tg,s -,ta o,roa
ments between steamship lines using the
canal. and railroads.
Violations of the prohibition clauses
quoted are made punishable by fine Of
5000 for each offense, or imprisonment
in the discretion of the courts. No pref
erentiaI advantages are TO be extended to
American-owned ships.
All vessels using the canal will be re-
quired to pay the same rate of toll, and
the Presidents suggestion that tolls
should be remitted to owners of Ameri-
can vessels is disregarded.
Free access to the canal is given to
vessels of the government OF the United
States or the government of Panama.
The bill provides that the canal gov
ernment shall be administered by a gov
ernor and such other officials as may
be necessary. all to be appointed by the
President The salary of the governor
is fixed at $4,000 a year. Il
The bill also provides that after the
canal has been opened II shall be unlaw-
full for any person to encroach upon the
Canal Zone without the permission of the
governor Exceptions are made. of
course, in the cases of United States
soldiers, sailors. and marines and en-
ployes identified with the canal admin |
istratIon.
May Appoint War Governor.
Section 12 of the bill authorizes the !
President in time of war. or when war
appears to be imminent, to designate an |
officer of the army for service on the |
Canal Zone such officer to assume and !
exercise exclusive authority and jurisdic- |
tion over the operation of the canal.
The bill defines the canal and the Canal |
Zone and christens the canal THE Pam |
anna Canal" It legalizes all the work |
done On the isthmus by executive author |
ity since the United States took over the !
Canal Zone. The measure provides for |
one district judge, from whose decision |
appeals may be made to the Court Of |
Appeals of the New Orleans circuit. and |
thence TO the Supreme Court of the |
United States.
Jury trials are authorized in all cases
on the Canal Zone, except in cases of |
equity and admiralty. The abolition of |
the Isthmian Canal Commission is au-
thorized upon completion and opening of
the canal.
"AH Nations' Not United States.
BY a specific provision of the bill the
committee goes on record as constituting !
literally a stipulation of the Hay-Ponce-
fote treaty with Great Britain that the
canal shall be opened to the war vessels
and vessels of commerce OF all nations
on equal terms. President Taft has con-
strued all nations" as not including
the United States The committee bill
deals with this question in the following
words:
No preferences shall be given. nor
shown, directly or in
directly, to the vessels of any nation, its
citizens, or subjects, other than vessels
belonging TO the government of the
United States Qncluding those belonging
to the Panama Railroad Company, and
the government of the republic of Pan
anna, observing the rules and regulations
Of the Panama Canal"
The use OF the words directly or in
directly is intended to prevent the re-
mission of tolls or partial remission to
owners Of American vessels.
The committee ordered the bill report
ed by a vote Of IA to 4. The four voting :
Ia the negative were Representatives
,alder, OF New York. and Knowland, of
California, Republicans, and Broussard,
# Louisiana, and Doremus, of Michigan, {
Democrats. These members opposed the 7
pill because it does not prohibit railroad !
owned vessels from using the canal.
They believe that only by such a pro- I
vision can real competition between a 1
ranscontinental railroads and coast-to- c
'oast traffic through the canal be kept
live. They will embody their views in !
/ minority report and a sharp fight on }
he floor Of the House is certain to be f
Taged over this part OF the bill. n
49,. F