New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-10
Cannot Affect Great Britain.

SdnHot SHeSI STcdt OTItdiH'
While the British Foreign Secretary
seems to see some fundamental differ
ence between subsidies, even though
measured by the amount OF the tolls
paid, and failure to collect tolls, II will
not be difficult to demonstrate that the
method employed is merely question
OF bookkeeping and that It cannot sf-
feet the interests Of Great Britain.
whether the tolls on coastwise ship
ping are actually collected and sub
sequently refunded In the form Of a
subsidy, or whether they are RENTED
in the first place, always assuming, as
is the case. that such remission does
not operate TO increase the tolls i'm
posed on foreign shipping.
Sir Edward Grey goes even further In
his admissions, granting In effect that
the Hay-Pauncefote treaty does not
even operate to prevent the United
States from subsidizing any OF the yes
sells. whether engaged in the coastwise
trade or otherwise, so that, in the light
of the concession made In almost the
opening paragraph Of the communios-
ton, there appears to be nothing to
prevent the United States from sub
sidizing all its vessels, not alone those
engaged in the coastwise trade, but
those which come into direct competi-
ton with British shipping. And this
conceded, the argument that this coun-
try could not measure its subsidies tc
foreign shipping by the amount ex-
pended In Panama tolls falls to the
ground.
Conflicts with Taft's View.
A strong and a convincing argument
is made by the British Foreign Secre-
tary in support of the contention that
the words "all nations" as used in the
-Pauncefote treaty include the
United States, and in this contention
is at direct variance with the views Of
the President and the Secretary of
State. Having, however, conceded the
right of the United States to subsidize
it's own vessels, expressed in the Ian
gauge-"nor do they (his majesty's gov
ernment) find either in the letter or in
the spirit of the Pauncefote treaty
any surrender by either of the con
tracing powers Of the right to en-
courage its shipping or its commerce
by such subsidies as 1t may deem ex-
pedent''--the Interpretation Of that Soc
ton OF the treaty becomes largely
academic, especially as it has been
proved almost beyond peradventure
that Congress is unalterably opposed "
any subsidy or similar encouragement
for American shipping other than that
engaged In the coastwise trade.
Reiterating the view that the United
States remains free, under the terms of
the treaty, to grant such subsidies as
it may see flt, Sir Edward says further:
ton the right OF the United States to
grant subsidies to United States ships
generally or TO any particular branches
OF that shipping. but II does not follow
therefore. that the United States may not
treaty from granting subsidy to certain
shipping In a particular way. IL the effect
of the method chosen for granting such
subsidy would be to impose upon British
or other foreign shipping an unfair share
of the burden of the upkeep OF the canal
or 70 create discrimination In respect
to the conditions or charges Of traffic. or
otherwise TO prejudice rights secured to
British shipping by this treaty.
Two Ways of Injury, Hs Says.
Tnuard the copclusion OF the COM
munication Sir Edward Grey takes a