The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-29

ly disclaims entertaining any doubt as
To the right To exempt American
warships and other government yes
sells from tolls. as they are a part of
the governments protective system,
and IL is not understood that Great
Britain challenges the right Of the
United States TO protect the canal, or
to require an explanation Of what re-
lation the movement of a particular
protection.
Thus clearing away all objections
Mr.. Knox believes nonrelevant, the
note proceeds to discuss the British
assertion that the exemption Of
United States coastwise vessels from
tolls is a discrimination against Brit
ish vessels. Mr.. Knox recalls Sir Ed
ward Grey's admission of the right of
the United States to grant subsidies to
its shipping generally or to any par
ticular branch and although this is
"a form of subsidiary" to exempt the
coastwise shipping from tolls, he re-
CARDS it as Objectionable as throwing
an unfair share of the burden of up
keep in the canal on foreign shipping.
The secretary points out that the
British do not claim the right to par
ticipate in American coastwise trade
but object to the exemption of that
trade from tolls because they may ad-
versely affect British rights to equal
treatment in the payment of tolls or
to just and equitable tolls.
He also recalls the British objec-
tion that coastwise trade can not be
circumscribed so completely that
benefits conferred upon it Will not af-
feet vessels engaged in the foreign
trade. Thus a cargo intended for an
American port beyond the canal and
shipped on board a foreign ship could
be sent to it's destination more cheap
ly through the operation OF the pro-
posed exemption by being landed at
United States port before reaching
the canal and then sent on as coast
wise trade, to the detriment of foreign
ships in direct traffic. Taking this
statement in connection with one by
Mr.. Innes on the the same point, to
the effect that perhaps no objection
could be taken to the exemption If
limited to bona fide coastwise traffic,
Secretary Knox declared this to be
exempt its vessels in the coastwise
trade from tolls.
"As TO this" says the secretary, "i,
Is sufficient to say that obviously the
United states is not To be denied the
power To remit tolls to its own coast
wise trade because of a suspicion Of
possibility that the regulations yet 10
be framed may not restrict this ex-
emption to bona fide coastwise traffic.
The answer TO this objection, there
fore, apart from any question of treaty
Interpretation is that it rests on con-
lecture as To what may happen, rather
than upon facts and does not present
question for submission to arbitra-
ton as II has not as yet passed beyond
the stage where it can properly be
dealt with by diplomatic discussion.
1T will be remembered that Only
questions which it may not be pos
sible to settle by diplomacy are re-
quired by our arbitration treaties to
be referred TO arbitration," Mr. Knox
continued
The secretary dismissed in the same
way another British contention that
there is nothing in the United States
law to prevent any American vessel
from combining foreign commerce
with coastwise trade TO the detriment
of foreign shipping, which he declares
depends upon future conditions and
facts not yet ascertained, arbitration
of which would be premature.
Taking up Sir Edward Grey's OBJ
lection that the canal act would en-
able tolls TO be fixed which would not
he just and equitable, the secretary
remarks that this again is based upon
mere contingency that there is no
claim that the tolls, as now actually
hXed, are not Just and equitable"
without admitting that the burden
Of proof rests upon the United States
show that the tariff has not been
reckoned with in fixing upon the tolls
and that consequently they are equit-
able. secretary Knox welcomes the
opportunity of informing the British
government that such is the case. He
declares that in adopting the rate of
$l.25 per ton, Prof Emory Johnson
included American coastwiSc shipping
~ H. ril, t1s.tf a..