The Washington times., 1912-07-17
SENATOR ROOT ON CANAL TOLLS ISSUE.

SENATOR ROOT ON CANAL TOLLS ISSUE.
Senator Root is an acute lawyer and a skilled
diplomat. No man in our public life is better
equipped to judge the international complications
that will arise IL legisate to give American ships
free passage through the Panama canal while
assessing tolls against those of other nations.
Bluff, bluster, and jingoism must therefore be
set aside while serious hearing is given to the de-
lberate judgment of Senator Root that we have no
right to discriminate in favor Of our own ships. This
proposition he backs with the weight Of his authority
and experience; on it he rests his repute lawyer
and international expert. He has warned the Senate
that we cannot possibly enforce our own sweet will
regardless of treaty obligations, as the jingoes
would have us do, because we are bound by treaty
of arbitration with Great Britain that will compel
US to defend our course before the Hague arbtra
court.
II may take many years to reach decision there.
Meanwhile If we are collecting tolls from foreign
vessels while granting free transport to Americans,
we will be piling up obligation which, in case of
decision against US, must meet: we will have to
pay back all the tolls thus collected from foreigners
Senator Root suggests the possibility that this
would impose serious burden on the Treasury. 1t
is not possible to take very seriously this view. The
Treasury will presumably be able readily enough to
rassment.
But there is another view of the matter, not
suggested by Senator Root at ALL but injected into
the Senatorial discussion by Senator Lppitt of
Rhode Island, which seems to deserve even more
serious attention. If we open the canal with an
international law suit commerce is going to be chary
of using it. The ship owner must pay tolls; he may
or he may not get them back later. The wares he
transports cannot wait for that decision. Shall they
be sold at tos-on or tos-of prices? The steamship
line must charge enough to make itself whole in
any case; the trader must pay that basis; and If,
after years Of litigation, there is decision ordering
a refund, it will be utterly impossible to pass that
refund along to the ultimate consumer 1t will be
simply so much profit added to the earnings of the
shipowners.
In such condition Of complexity and uncertainty
there would inevitably be prejudice against our
canal The trading world would be uncertain how to
treat it, There would be temptation to speculation
in the chance of refunds; and in the end prejudice
would develop against our administration OF the
great enterprise that might delay for decades the
most satisfactory development Of its traffic.
Senator Root suggests that without actually en-
forcing the proposition Of discrimination, Congress
might assert that right in its law, and then make up
case with Great Britain for submission to the
Hague. This seems the simple, satisfactory way
out of the trouble. Give the canal fair start with
out inviting the prejudice Of the commercial world
against it and against us as its owners
This is question Of practical business. If we
impose discriminating taxes against foreigners they
will be ndisposed to stand for what they will believe
an injustice. They will prefer not to use the canal
We have ships to use it, so far as foreign trade
is concerned. Therefore, until ships could be built
to traverse it under American registry, the great dtcn
would stand comparatively idle.
But would the American ships be built? In.
vestors might be at first blush tempted to provide
ships to get the benefit of the subsidy this held out
but there would be uncertainty whether the subsidy
would continue. About the time he had ship ready
for business, the American builder might find him
self stripped of his discriminating rate, and com
PEELED to compete on even terms with all the world
From every point of view, it seems folly to at
tempt now to enforce rule of discrimination. 1
will be bad for our international standing and bac
for the development of the canals traffic.