Daily capital journal. (Salem, Oregon) 1903-1919, 1912-07-18
COASTING
VESSELS
TO Be FREE
CONGRESS- DISCUSSING MATTER
OF TOLLS ON PANAMA CANAL
SEEMS NEARLY UNANIMOUS in
PASSING COASTWISE VESSELS
FREE.

Washington D. c., July 1S.-(Spe-
cial)-Shall shipping controlled more
or less by the railroads be excluded
from the use of the Panama canal
and shall ships engaged in the coast
wise trade be permitted to use the
canal free Of toll, are problems short
ly to be solved by the senate when the
bill providing for the opening, main
tenance, protection and operation Of
the Panama canal is taken up for
consideration by the upper branch of
congress.
The house bill relating to the reg
ulation Of the Panama canal was
amended in a number of important
particulars by the senate committee
on interoceanic canals, Of which Sen
ator Brandegee is chairman, but the
bill, which is on the calendar and is
to be made the unfinished business
after the sundry civil bill is out of
the way, was submitted without a re-
port from the committee. While am
endments were adopted by majority
votes in a number of instances, a ma
jority could not be found to stand
for the bill as amended and so its
making is entrusted to the senate,
which will probably debate the Ques-
tlons suggested at considerable
length.
The bill as 1t passed the house
gives vessels engaged in the coastwise
trade free passage through the canal
and prohibits steamships which are
owned by the railroad companies
from using the canal, The bill as it
came from the senate committee on
interoceanic canals extends the pro-
visions for free passage to American
ships in the foreign trade. provided
the owners Of such vessels agree that
they may be taken and used by the
government in time of war or other
public emergency, and allows rail-
owned or controlled by railroads
road-owned ships engaged in foreign
trade to also carry coastwise com
merce through the canal provided that
at least half of their cargo, in ton
mage, is destined to or shipped from
Oriental or European ports.
Upon these provisions, as lively and
interesting debate as the senate has
listened to in years may be expected.
"In my opinion the Panama bill
should be amended in the senate to
conform to the house BILL" said Sen
ator Geo. e. Chamberlain, of Oregon,
today
Coastwise vessels should be per-
mitted to use the canal without the
payment of tolls, but this privilege
should not be granted to steamships
owned by railroads or by companies
the stock Of which is owned in whole
or in part by railroads.
"If railroad companies are permit
ted to operate steamers through the
canal and engage in coastwise traffic
in competition with Independently
owned steamship companies, the re-
suit will inevitably be that by reduc-
ing rates below a remunerative basis
steamships owned by railroad compa-
nies will drive the Independent com
panles out Of business entirely and
leave the railroad companies to fix
the transcontlnental rates, at figures
that will not only compensate for car
riage but for losses sustained by their
steamers.
This has been the history OF trans
portation on both the Atlantic and
Pacific coasts and railroad companies
have for years operated steamers at
loss, driving Independent lines out
Of business and fixing arbitrary rates
for interstate and all continental traf-
fic.
at Is a part OF the history Of the
Pacific coast that the Southern Pa
clfic company and other transconti-
mental roads have operated steam
ships on the Pacific, between Panama
and points north, at heavy expense
and yet have been able to recoup
these losses by excessive rates by rail
Not only has this been the history
on the Pacific coast, but It is the his.
tory of transportation wherever q
navigable waterway is paralleled by
lines Of rail- Whenever an independ-
ont company undertakes TO operate
steamers on such waterways in com
petition with railways these latter
companies install their own vessels
reducing rates by water so as to drive
out all competition, thereby leaving
the railroads masters Of the field and
able to fix such rates as they may sec