El Paso herald. (El Paso, Tex.) 1901-1931, 1913-02-14
Canal Replies Tit for Tat
State Department Thinks England
Has Protested Before
Being Hurt.
Nv Frederic j. Hna[fn
p By Frederic J. Haskin =
- AsHINGTON d. G, Feb. IA

canal act, he politely told sir Edward
Grey that the British foreign office dis
played so little knowledge Of the presi-
dents proclamation fixing tolls on the
canal that he could scarcely believe
it had been read before sir Edward
drafted his note of protest This was
something Of a case of tit for tat,
since sir Edward had expressed The
belief in his note that president Taft
had not been able to catch the purporr
Of the lines note Such is the course
Of diplomatic indirectiOn-
British Contention Ignored.
Mr. Knox then recalled the fact to
the British foreign minister that he
had probably protested before mis-
country was hurt, since his note was
ton was issued, and, therefore, seem
ingly before Great Britain could
have understood the effect of the pres
dents proclamation. Mr.. Knox in
formed sir Edward that the whole
tenor of his note was a, protest against
what the president might do rather
than against what he had done. lie
declared that since it was evident that
England had protested without waiting
TO understand the presidents prOcla-
nation, the diplomatic situation that
sir Edward was discussing was wholly
different from the one now existing.
Mr.. Knox in this tacitly ignored the
British contention that il was a viola
ton of the treaty to assume the right
to exempt American ships. whether eX-
emptiOn was actually made or not
Three Direct Objections.
The three direct objections to the
canal act urged by the British gov
eminent are that II eXempts cOastWise
traffic from paying tolls, that It gives
the president power to discriminate
against foreign shipping, and that il
gives the government owned vessels CT
the republic of Panama the right to
use the canal free. Taking up these
objections IN reverse order, secretary
Knox expresses surprise that England
should drag Panama into the matter.
He says that the treaty with the repub-
lie of Panama, providing for this toll
exemption, has been in effect for a
decade, and that until now not a syl-
liable OF protest has been heard He
concludes that all the facts in the
case indicate that England does not
want to submit that matter to arbitra-
ton
With reference TO the allegation that /
the canal act gives to the president
the right to fix tolls in a way that
would be discriminatory against Brit /
ish shipping, secretary Knox advises |
to consider this question when the !
president takes such action
Protest Against Exemptions.
With reference to the principle of /
eXempting cOastwise traffic from toll I
charges, the British government is re- /
minded that in its first note it prac- /
ticauy conceded the right Of the United /,
States to exempt its cOastwise shipping /
from toll charges, when il said that II 4
the trade should be so regulated as /
to make il certain that only bona /
fide cOastWide traffic
would be benefited by this eXemp-
ton, it may be that no objection I
could be taken Secretary Knox
then drives another argument home
by asking if the United States
is to be denied the right to
r-.nr- hlafa .
has a suspicion or believes .
there is a possibility that the reSu-
latiOns yet to be framed may not re-
strict this exemption to coastwise
traffic entirely.
Loss Is On United states
The Grey note expresses the fear |
that the United States viii, in remit
ting the tolls on cOastwise business
asses the entire charges Of mainte-
nance OF the canal upon vessels in the
foreign trade, and thus cause them to ]
bear an unequal burden. To this sec
rotary Knox has replied that the Brit
ish government is far from the facts.
He shows that this cOastwise traffic
was computed by Pgof. Emory John
son in his calculations, and the loss |
incurred by the remission of these
tolls viii fall solely upon the United
States He Furthermore calls England's
to the fact that the treaty
gives the United states a right 10
charge, IN the very words OF sir Ed
Z
return to the United States the in
terest on the capital expended and the
cost of the operation and maintenance
Of the canal
What Shipping VIII Pay.
As a matter of fact. the United
States does not propose to charge Eng
land rate of toll that viii yield sucn
returns. Under the English cOnstruc-
ton, warranting the United States in
a rate that would yield re /
turn on the capital invested and the
cost Of operation and maintenance, We !
might have fixed the rate at nearly
50 instead Of at $1.2O. 1t is estimated
that our total outlay on account of the
canal including interest, the cost Of
operation, maintenance, and policing,
VIII represent approximately $4,000
200 year Prof Johnson estimates
that lO,5OO,OO0 tons. net register, CT
shipping, will pass through the canal
to begin with, and that this amount
will be increased to about 10000 !
tons ten years hence, and to some a.
100000 tons IN 1850 From all this il
viii be seen that instead of working
/ hardship on England by renting /
tolls on cOastWise traffic. it will Ee 4
nearly 20 years before England VIII I
be paying for its shipping what it !
costs TO maintain and operate the !
ANAL for its benefit. This, of course 1
pegs the question of the treaty guar
intee of equality of treatment
Substituting Every Vessel
Secretary Knox observes that since I
admittedly we are not going to make !
enough out Of the tolls we charge to |
meet the fixed charges and the cost Of |
operation and maintenance for many /
-ears to come, when we fix rate be- I
Ow that point we are practically sub |
idizing every vessel that passes
through the canal, be it British or
American. foreign or coastwise. With |
he British government recognizing the |
light of the United States to exernDt !
IS coastwise traffic provided il does
rot add toll or other burdens to British
with the United States IN
luding cOastWise shipping in its estf-
mates Of tonnage upon which to predi-
ate q fixing of tolls, and being in a
POSITION to guarantee that the exernD-
ion under the canal act shall be limit
d to bona fide cOastwise rattle sec
etary Knox processes to be unable TO /
ee what England is complaining
bout.
BritOns Cry Before Hurt.
In other than diplomatic language
lie thinks that England has gone off
alt cocked-that it objects to me
anal act but that the act does NOT sfS
he tolls He charges them of ienorine-
he presidents proclamation vvbish / J
e thinks, puts at rest practically an ! !
ne fanciful injuries that sir Edward ;
Trey thinks are about TO descend m !
ri oh Gn I