Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-12
ST|MSON ON TOLLS
Says U. S. Can Make Repay
ments to American Ships.
AFFECTS PANAMA CANAL
Secretary of War Appears Before
Committee of House.
TELLS OF TWO NECESSITIES
Thinks Action to Prevent Sitting of
Competition Could Be Left
to President.

Il have no doubts as a question of
law said Secretary of War Stimson be-
fore the House interstate commerce COM
mittee today, that under the Hay!
Pauncefote treaty the United States can
pay from its treasury to any American
ships any reappropriation or repayment
Of tolls that it sees fit. Whether we can
discriminate in favor of American ships
directly is another question. 1t all in
wolves a question of national policy.
am not discussing that question now. Ny
opinion is, however. that the first method
would be the safer
In this manner Secretary Stimson dis
missed the question Of American prefer
ment in Panama canal tolls before the
committee. He was questioned by men,
bers Of the committee, but declined to be
drawn into a discussion of an academic or
legal nature.
wouldn't the repayment to American
ships be violation Of the spirit of the
Hay-Pauncefote treaty and would not
the words directly or indirectly in that
treaty be considered SuperfiuouS?" asked
Representative Sims.
Il do not care to go into that discus
sion here" said Mr.. Stimson.
Two Fundamental Requirements.
The Secretary laid down two funda-
mental requirements for the progress of
the canal Col Goethals, chief engineer
of the canal, who was witness, agreed
with him. The first legislative necessity,
Mr.. Stimson said, was law organizing
the administrative work of the canal, so
that the construction force can be or
ganized into an operating force The
next question is that of tolls, he said, and
he declared that the United States owed
it to the commerce of the world to In
form it as to what to expect in the mat
ter Of tolls.
He deprecated the establishment of
minimum toll by law, promised on the
operating expense and cost Of the canal.
He said the primal purpose Of the canal
was the development Of commerce, and
that such questions as reimbursement for
costs of construction should be deferred.
He thought that If the future shows that
the income from tolls can be applied to
the cost, that this should be done, but
first of all he said he thought the $780,
100000 paid for the canal should be dis
regarded in the broader view OF helping
the commerce OF the world.
Disagrees With Mr.. Knowland.
Mr.. Stimson disagreed with Repre-
sentative Knowland and others over
the necessity of provision In the bill
to prevent the sitting of competition
in transportation rates by reason Of a
combination of shipping interests using
the canal. He said he would leave
these matters with the President rather
than Congress. The interstate COM
merce commission. with broadened
powers to cover coastwise traffic, he
said. could meet the situation.
He said he preferred to postpone the
cure for evils until the evils actually
exist, although he recognized the sit
uation in California and the fear there
of the prevention Of freight rate relief
by combinations on the canal
Mr.. Stimson said he would keep legis-
latiOn for the encouragement of American
shipping apart from Panama canal legis-
lation. He also would not operate gov
ernment owned steamships to the canal.
and in this connection advised that the
corporate entity of the Panama Railway
Company be maintained. He said that the
pressure brought to bear by the country
for lower rates. If the government ope-
rated the steamships, would be tremen-
dous. He preferred that the President
have final disposition of such questions.
would not political pressure operate
against the President as well as against
Congress-" asked Representative Stevens.
Not as much," answered Mr.. Etimson,
and the committee smiled.