Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-08-12
MAY BE SOLD
Continued from Pau0 -

lines in like position so that they
! could pass through the canal on eX-
actly the same terms as any other
ships, or nothing
The Senate craft relating TO the
matter is as follows:
Section II. That no ship owned,
chartered, operated or controlled by
6 railroad company. or in which, any
railroad company has any interest
whatsoever (bv stock ownership or
otherwise, either directly or indirect.
ly. through any holding company or
by stockholders, or directors in COM
mon or in any other manner), shall
lie permitted to enter or pass through
the Panama Canal if engaged in the
coastwise trade between ports of the
United States. That any ship of
American registry. however, owned
or controlled, shall be permitted to
operate through the canal in trans
oceanic trade to and from Oriental or
European countries; said vessel on its
way to and from said foreign coun-
tries shall be permitted TO do a coast
wise trade between ports of the
CuIlcu OldlSS dIlu IHISI HlSuldIS IO1
eign ports:
provided, That this shall not be
permitted to any ship owned or con-
trolled in whole or in part by any
other company, except those engaged
in said transoceanic trade, nor shall
any coastwise trade be done by any
such ship unless ON a voyage to or
from such transoceanic ports, and not
10 those from Canada, Mexico or any
Central or South American port.
Provided further, That no such rail-
road owned or controlled ship shall
pass through the canal unless at
least so per centum of its cargo In
tonnage, is destined to or shipped
from Oriental or European ports.'.
History of Compromise. !
at is believed" says Washing
ton dispatch of July 10, that the
terms thus set forth would be so on
erous as not to make it worth while
for the line to build the new steam
run from New York via the canal to
the East.
Behind this change in the situa-
ton is an interesting story. When
the question of the use of the canal
first came up the matter Of building
the new fleet of ships at cost of
$12 10000 was discussed and Judge
Lovett, the President of the Southern
Pacific, decided to refer it to some
of. his technical operating officers.
He did, in fact, refer 1t to julius
L ~, oil
railroad men, who after thinking the
subject over very carefully, told him
that they did not believe it would pay
TO attempt to do business through the
canal on any basis, no matter how
favorable it might be. Mr.. LDvett, it
is reported, took the larger view and
told r. p. Schwerin and Maxwell Ey.
arts that they might go down to
Washington and seeit what could be
done with reference to getting con.
cessions from the Interoceanic Canals
committeeman even earlier from the
House Interstate Commerce Commit.
tee. The House put in a flat require
ment that all railroads should sep,
arate themselves from their vessel
property and the Senate put in the
modified provision already referred
to. ." -. -
It is understood that before the
Senate acted it referred the whole
proposition to Franklin X. Lane, of
the Interstate Commerce Commits
sion. Lane is understood to have
told the members he had no doubt
the Pacific Mail Company would be
sufficiently satisfied with the modi-
fed scheme already cited to build its
ships. Mr.. Lane is a Pacific Coast man
and considered to be in sympathy
with progressive" ideas, especially
insofar as these imply hostility to
railroads and special favor for water
transportation. At any rate he was
influential by giving, this advice in
inducing the Senator'S who were. work
ing on the scheme to offer what now
turns out to be an absolutely impos-
sible proposition, inasmuch as it is
unsatisfactory to the coastwise in
terests and is wholly rejected by the
Pacific Mail and Southern Pacific
Railroad companies. The ultimatum
from Judge Lovett puts Congress in
the position of having to take one
view or the other, either prohibiting
our railroad-owned ships from going
through the canal, while permitting
those of Canada and every other ma,
ton to do so, or else of mourning the
hostility of the coastwise interest,
hungry for subsidies as it is. The
announcement has put rather a new
face on the situation