The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1912-08-10
Nv AssoeIatsd Press.

BY Associated Press.
washington. Aug. 9.-The Panama
canal administration bill. providing for
the free passage of American SHIPS,
prohibiting railroad owned vessels
from using the waterway and author
izinE the establishment Of one-man
government for the canal when com
nleted. passed the senate tonight Dy
a vote Of At to Is. The provision TOT
free tolls to American ships was en-
dorsed Notwithstanding the protest OF
Great Britain that it was in violation
Of the Hay -Paunceforte treaty.
The senate's amendment to the
Panama canal bill to admit to United
States register American owned
foreign built ships engaged in foreign
trade only, and pass them through the
Panama canal free of tolls, in all
probability will receive no opposition
from the administration.
Secretary Nagel is committed to tne
idea. In his last annual report ne
recommended the passage of bill Tor
the admission Of foreign built ocean
steamships Of American registry to
engage solely in foreign trade. This,
he believed, would be the beginning
of an American merchant marine, ex-
tending shipping under the United
States flag I'm trade with South AMI
Central America and the West Indies.
The provision, 1t is said, probably
would not affect trans Atlantic Or
trans Pacific commerce as there would
be no incentive for such ships to as
sumo the obligations of American
registry. The right of free passage
through the canal, however, 1t Is said
today by officials Of the department of
commerce and labor. would probably
bring all the lines engaged in traffic
between the countries Of the western.
hemisphere, but dying foreign flags,
tll1der the stars and Stripes.
The United Fruit Company and the
New York & Pacific Navigation Com
pany were cited as instances.
SENATORS CLASH.
Control Of New England steamship
lines by the New York, New Haven &
Hartford railroad provoked a lively
debate between Senator Poindexter
and Senator Lippitt, of Rhode Island.
who had clashed in last nights
session
Senator Poindexter read letter
from Louis d. Brandeis, of Boston, de-
claring New England was in the grip
of an 'intolerable railroad monopoly.
"Ndr. Brandeis is a professional agi-
tator," interrupted Senator Gailinger,
of New Hampshire. "He Is not bust
ness man. He is always in the lime
light when the question of railroads,
steamships or monopolies is under
discussion"
Senator Lippitt declared that senti-
ment of New England cannot be
founded upon misstatements."
Senator Poindexter retorted that
oficials of the New Haven railroad
had given testimony at variance with
statements by Senator Lippitt and
that it was a question OF choosing be-
tween the statements of the officers Of
the New Haven roads and the state
ments Of the senator from Rhode
Island
Senator Burton, of Ohio, declared a
prohibition against railroad owned
ships would restrict the full develop
ment OF the canal. The fear that rail
roads could drive out all other ships
and ultimately control rates could be
fully met by adequate laws, he said.
Senator Kenyon asked Senator Bur
ton whether he believed the point had
been reached IN American develop
ment where a regulated monopoly
must be recognized in railroad de-
velopment.
THAT Is practically IT," replied
Burton. Il believe we are nearing the
parting Of the ways" said Senator
Kenyon, where we must decide be-
tween competition for railroads, or
combinations held under the control Of
the government.
Senator Burton said he did not IA
vor absolutely free use of the Panama
canal by railroad owned ships. He
favored control by the interstate COM
merce commission of ships owned or
controlled by railroads.
The granting of free tolls to Ameri-
can vessels engaged in foreign trade.
approved yesterday by the senate, was
attacked by Senator Lodge.
This is bound to raise serious ques-
tions with other countries" he said.
He opposed the sweeping restrictions
OF the Panama bill as It passed the
house, against the control of steam
ship lines by railroads.
TWO AMENDMENTS ADOPTED.
Two important amendments were
attached to the bill. The first one
by Senator Reed. prohibits ships
owned by Illegal industrial combina-
tions using the canal. The second, by
Senator Bourne, would force railroads
to give up water lines that might
otherwise be their competitors If II Is
proved that they are sitting competi-
ton Just before the passage, Sena-
tor Root moved to strike out the Sec
ton giving American coastwise ves-
sells free tolls Senator Hoke Smith
moved to strike out the provision for
free tolls to American vessels in
foreign trade. Both motions were
overwhelmingly defeated. The terms
of the original house bill, which re-
ouired that every railroad in the
country dispose Immediately Of any
steamship lines which otherwise