The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-12-10
KNOX BEGINS To
MAKE THOROUGH
STUDY oF...No7E
Takes up Consideration Of
Questions Raised by
Great Britain.
TREATY TO EXPIRE
IN JUNE, NEXT YEAR
Suggestion that Differences be Sub.
mitted to The Hague Causes Dis.
cussion as to Methods-FAvordtism
TO American Shipping Is tho PoinA
TREATY TO EXPIRE
IN JUNE, NEXT YEAR

Washington, Dee. lo.-Wlth the
formal presentation OF Great Britain's
protest against the Panama canal bill.
Secretary Knox today began a careful
study of the subject raised by Sir Ed
ward Grey in his lengthy note trans
mitted yesterday BY Ambassador
Bryce.
The British minister Of foreign af.
fairs bases his principal objection on
the proposal to relieve all American
shipping from paying canal tolls.
either by exempting 1t from charges
or remitting the tolls paid. and con-
tends that that section of the law vio-
lates the Hay-Pouncefoote treaty. He
proposes that the question be sub
mitted. II there 10 no other way avail
able. to the Hague for arbitration.
The question Of how the matter may
be submitted to the Hague Is now the
center Of interest. The existing arbi-
tration treaty between the United
States and Great Britain expiring by
|ersy lasts until then. there would be
no treaty under which the dispute
might be arbitrated. In any case q
special agreement approved by tho
senate Is necessary before the dispute
can be referred to the Hague. Mean
while Knox will prepare friendly
note in reply to Great BritAin's mes
sage.
Subject is Arbitrable.
prior delivery OF the British note at
Ifords ground for the belief that while
not agreeing with the British conten.
ton that the canal toll act 10 in vio.
lation Of the Hay-Pauncefotte treaty,
the administration is inclined to ad-
init the subject u one over which there
might be a fair difference Of opinion.
It y known the president does not
vital interests OF the country. but
rather as Of purely pecuniary conse-
quence and therefore not among the
prohibited subjects mentioned ii the
existing special arbitration treaty with
Great Britain. Therefore. while that
result may not be reported immediate
w., 1t u probable that finally. the ad-
tministfation win hold the question .
clearly arbitrable one.
The next step will be to negotiate
with the British ambassador with .
lview to preparing to the draft OF an
agreement specifying the matter to be
larbitrated which must 90 to the SEN
ate for approval.
Bryce Read Note.
Great Britain's formal note Of pro-
test was presented to the secretary Of
state last night by Ambassador Bryce.
who read the note. word for word. to
the secretary at the latter's homo.
The objections are: That while It
was clearly in violation Of the Hay
lPauncefote treaty. either to remit or
refund tolls on all American shipping
using the canal, the same objection
probably would apply to coastwise
trade, In view Of the probable tmpos-
sibility Of framing regulations that
would not result in preference to
American shipping.
Supporting these points in long ar
guments, Grey indicates that, strong
resistance will be offered any attempt
to exclude British ships owned by
Canadian railroads. or whose owners
may be guilty Of violating the Sher-
man antitrust act.
It also indicates the underlying OBJ
lection to the exemption from toll OF
American coastwise ships 10 an appre-
ciple might be extended to every
American ships foreign trade
Otherwise tho note - devoted al
most entirely to an effort to demon
etrate that any such exemption Of
American shipping as is proposed 10
in direct conflict with the terms Of the
Hay-Pauncefoote treaty and that
President Taft was clearly wrong
when he took the contrary view.
Suggest Arbitration.
Generally the British note might bs
summed up as q clear definition Of the
differences between the two govern
|ments regarding the construction of
the Hay-Pauncefote treaty winding up
with a proposal that the issues should
be settled by arbitration. provided that
they cannot be adjusted by mutual
agreement for which way remains