The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-24
Replies to Protest in
Matter Of Panama
Canal Tolls.
QUESTIONS RIGHT
OF INTERFERENCE
If England Is Not Satisfied
With Conditions as Set Forth
by Secretary, He Suggests
Special Commission of In
quiry-Thinks Arbitra-
ton Is Not Necessary.

Washington, January % Secretary
Knoxs reply to the British protest
against the exemption of American
coastwise shipping from Panama Canal
tolls, assures the British government
that domestic coastwise trade will not
be permitted to extend operation into
foreign competitive fields and that
increased tolls will not be laid on
foreign shipping. to balance the re-
mission TO American ships. If Great
Britain is not satisfied on these points
OF adjustment
The communication is devoted TO
the purpose of reducing to the smallest
point and number the Issues upon
which the two governments failed 70
agree and as 20 these-only two-lt IL
contended that they are entirely sus-
ceptible Of adjustment by diplomatic
means and without recourse TO arbitra-
ton.
MAY Refer to Commission.
If this course should not prove ac-
ceptable 70 the British government.
it is suggested that the whole contro-
versy be referred 20 special com
mission of inquiry, provision for which
was made in the unratihed Knox
Bryce general arbitration treaty Ihat
convention was approved by the Senate
with an amendment which curtaiied
the power of the special com mission
of inquiry to mere investigation and
report and refused TO permit the com
mission to bind either country 10
course of arbitration
Because of this amendment, Presl-
dent Taft has so far declined TO con
summate the treaty BY exchanging
Publications with the British govern
ment.
issue. Secretary Knox now offers to
give life 10 the treaty by an inmedl-
ate exchange of ratifcations, which
would insure the existence OF gen,
Great Britain after the lapse OF the
existing Hay-Pauncefote treaty. June
next AS an alternative. the Secretary
is willing that a commission be created
the facts in regard 10 the effect upon
t eiis's act and the Presidents prociama
Much of the Secretary's argument
rested upon his contention that Sir
Edward Greys protest, beng maze IN
proclamation fixing the tolls. is entire
" ina pplicabie to the controversy IN
its present state. and that, az matter
of fact the British contention rests
upon apprehension of things that may
happen in the future to the injury OF
British shipping. which. IN all prooapii-
ity, never Will occur
Disputes Interpretation.
Secretary Knox begins his note by
the fat statement that he cannot agree
with the British Interpretation of the
canal treaties. so far as they limit the
freedom of action of America or in
fringe British treaty rights POINTING
out that the Grey note was issued
without consideration of the Presi-
he arr
states that Sir Edward deals chiefly
with the possibilities Of what the
President might do under the canal
act. whereas the proclamation has
entirely changed the situation
Taking up the three objections made
by the British government, Secretary
Knox first discusses that which applies
20 the exemption from tolls of the
government vessels of Panama. the
United States. he declares. always had
asserted without challenge that the
status of the countries Immediately
concerned by reason of their political
relation to the territory in which the
canal was to be constructed. was diff
ferent from that of all other countries.
In regard to a second British OBJ
lection. that the Panama Canal act
might be thought TO confer upon the
President the power to discriminate
in the use of the canal in favor of all
ships belongo
10 the United States and its citizens
even in the foreign trade, by granting
them reduced tolls. the note quotes
from the memorandum. attached to
the canal act by the President wnen u
was signed as follows.
1T IL not. therefore necessary TO
discuss the policy Of such discrimina-
ton until the question may arise IN the
= xcrcisc of the Presidents discretion
Question Has Not Arisen
As no question as yet has arisen on
his point which in the words Of the
existing arbitration treaty. 1t may
not have been possible TO settle by
diplomacy. the note holds that the
suggestion of arbitration is premature.
BEFORE pass ing from that stage of the
question. Secretary Knox emphati-
callv discIaims entertaining any doubt
a. TO the right to exempt American
vvarships and other government ves-
sells from tolls. - they are part OF
government protective system and
j; IL not understood that Great britain
the right OF tho United
states to protect the canal. or TO 70
ouire an explanation OF what relation
the movement Of particular vessel
through the canal has 20 lie protection
Thus clearing away all objections
Mr. Knox believes non-reievsnt. the
note proceeds 10 discuss the British
states cosstwise vessels from tolls IL
discrimination against British vessels.
The secretary points out that the
British do not claim the right 20 par
ficipate in American cosstwise trade
bu: object 20 tho exemption Of that
trade from tolls because they may
adversely affect British rights to equal
treatment in the payment OF tolls. or
70 lust and equitable tolls. Ne also
recalls the 3ritirh objection that coast
wise trade can not be circumscrioed 80
completely that benefits conferred U pon
A. will not affect vessels engaged In tho
foreign trade. Thus cargo intended
for an American port beyond the csral
a,d shtpp-d on board foreign ship
could rot bo r-nt 20 its destination
moro oheaply through thc operation ~
the proposed exernption BY being landed
81 Emitted States pert bsfcre reaching
the canal. and then sent On a. coesfNise
=