The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-24
answer OF KNOX
ITO BRITISH NOTE
tContinued from frst page)

NOOutitiOcO AiciaA H'NN -
oient TO say that obviously the United
States is not to be denied the power TO
remit tolls to its own coastwise trade
because of suspicion of possibility that
the regulations yet to be framed may
not restrict this exemption 10 bonande
coastwise traffic. The answer 10 IRIS
objection, therefore. apart from any
question of treaty Interpretation, IS
that IL rests on conjecture as 10 what
may happen, rather than upon facts.
and does not present question Tot
su omission to arbitration.
ut will be remem bered that only
questions which 10 may not be possible
to settle by diplomacy are required
by our arbitration treaties to be re-
ferred TO arbitration.
Mr.. Knox continues. taking up Sir
Edward Grey's objection that the
canal act would enable tolls to be fixed
which would not be just and equitable.
the secretary again calling attention
TO the fact that this statement was
made without knowledge of the Presi-
dents toll proclamation. He welcomes
the opportunity of informing the
British government that in adopting
the rate Of sl.25 per ton, Professor
Emory Johnson included American
coastwise shipping in his calculations.
Quoting from his report, the secretary
shows that Professor johnson calcu-
lates the tonnage passing through the
canal in 1915. as composed OF American
coastwise shipping. 1000 900 tons Amer
lean foreign. go 900 tons and foreign
shipping. s.7so,OOo tons. IL was on TINS
estimate that the President fixed the
tolls.
IF. as a matter of fact" Secretary
Knox declares. the tolls now fixed
(of which Sir Edward Grey seems
unaware) do not exceed this require,
ment Interest on the capital expended
and the cost of operation and main
tanning the canaD and as heretofore
pointed out. there is no claim that
they do. 1t is not apparent under
Sir Edward Grey's contention how
Great Britain could be receiving I'M
Just and inequitable treatment II the
United States favors its coastwise
vessels by not collecting their share OF
the tolls necessary TO meet the require
ment.''
The exemption of the coastwise
trade from tolls. the secretary holds. Is
merely a subsidy granted by the Uniteo
States to that trade;
Has Power to Violate Treaty.
Summarizing the British objections
and commenting upon them, secretary
Knox does not deny that Congress mas
the power, through the ESSEN % o,
fote treaty in its aspect as rule OF
municipal law -
Only when the com pldlrJ Is lbaS ~
Great Britain that British vessels dc,
tually have been subjected TO UNEQUAL
treatment or ineQuitable tolls. secretary
Knox asserts can the question be
raised whether the United states is
bound by the HayPauncefote treaty
to collect tolls from American vessels,
and whether the British Vessels are
entitled to equal treatment. Therefore
the secretary holds that IL Is not now
necessary to discuss questions OF iacts
which have not yet arisen.
In conclusion the American note sug-
the present discussion may require
an examination of Great Britain ulto
the facts set forth as TO the basis Tor
the tolls and other facts bearing upon
the situation. If Great Britain, as a
result of such an examination, nnds
that different opinion exists between
the two governments on any OF tne
important questions OF TACT lnVoiEe1.
then "a situation will have arisen wnicn,
in the opinion of TINS goVer ,i zen
by referring the controversy 10 com,
mission of inquiry for examination ana
report, in the manner PROVIDED ioE IN
the unratined arbitration treaty OF
States and Great Britain.
The necessity for inquiring into
questions OF fact in their relation 70
controversies under diplomatic AIS
cussion was contemplated by botn
parties in negotiating that treaty
This proposal might be carried out,
should occasion arise FOR aooptlng ~,
either under a special agreement or under
the unratiffed arbitration treaty above
mentioned if Great Britain Is prepares
TO join in ratifying that treaty, whicn
the United States is prepared TO 90
Published in London.
London, January 23--The reply OF
n n