The daily banner. (Cambridge, Md.) 1897-2008, 1912-12-10
ENGLAND ASKS
FOR ARBITRATION
Protests Against Exemption Of
US. Ships From Canal Tolls.
SAYS IT VIOLATES TREATY
Great Britain Claims Equal Rights
With American Shipping In Using
the Canal.

Washington. Dec. 10. - Formal de-
mand upon the government of the
United States to either to repeal the
act of congress granting free passage
through the Panama canal to Ameri-
can ships engaged in coastwise trade
or the submission of the controversy
to arbitration. was made by James
Bryce. ambassador of Great Britain,
in a lengthy statement presented to
Secretary Knox.
The statement, which bears the sig
nature of Sir Edward Grey, British
minister of foreign affairs, Is an am
plifcation of the original note Of pro-
test presented by A. Mitchell Innes.
British charge d'affaires. on July s
last.
1t endeavors to establish by argu-
ment the soundness of the British con-
.ention that the legislation favoring
American ships Is in violation Of the
treaty rights Of Great Britain with re-
gard to the Panama canal.
The note further gives warning that
another protest will be forthcoming
from Great Britain If it is held by the
government of the United States that
the disbarment from the use of the
canal Of ships In which any railroad
under the Jurisdiction of the inter
state commerce commission has an In
terest and ships whose owners may be
adjudged guilty of violating the Sher-
man antitrust law. The note states
that the British government now as
sumes that these two clauses do not
apply to or affect British ships.
In regard to arbitration, it is stated
that the British government has taken
cognizance Of the fact that many per
sons of note in the United States
whose opinions are entitled to great
weight-hold that the act Of congress
In question does not infringe the
treaty obligations of the United States,
and therefore 1t is declared the British
government Is perfectly willing to sub
NIT the question to arbitration IL the
United States prefers. This significant
sentence is added, however:
"A reference to arbitration would be
rendered unnecessary il the govern
ment of the United States should be
prepared to take such steps as would
remove the objections to the act which
bis maiesty's government have stat,
ed"
= Though neither the president or Sec
>tary of State Knox have ever made
any declaration as to whether the
TYnifn1 or would "a xuillfn fn h.
NIT the controversy over canal tolls
to arbitration. it has been generally
assumed that this government would
refuse to arbitrate the dispute with
Great Britain.
Sir Edward Grey in the note pre-
sented to Mr.. Knox hastens to deny
that the British government is at
tempting to deny the right of the
United States to grant subsidies to its
shipping interests, and thus deprive
1t Of the same rights enjoyed by other
nations and which will send subsidized
vessels through the Panama canal.
The British argument on the main
point at issue rests chiefly on the
Hay-Pauncefote treaty Of 1901. The
main point of the argument Is that II
any American ships are granted the
free use of the canal. British ships
using the canal will be forced to bear
more than a proper share of the bur-
den Of the cost of the upkeep of the
canal and interest charges on its cost
of construction. This, 1t is claimed, Is
in violation Of the clause Of the Hay
Pauncefote treaty, which declares that
all charges made by the United States
for the use Of the canal shall be just
and equitable.