New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-22
KNOCKS PANAMA
NOTE CLARIFYING
Continued from first page.

Downing street.
For instance. Mr.. KnoXs presenta-
ton Of the fact that the term coast
wise" applies only to ships engaged eX-
clusivcly in carrying passengers ana
freight between the ports Of this coun-
try and that transportation in such
bottoms Of either freight or passengers
for foreign ports would deprive them
Of the free tolls provision Of the PAN
anna act, is clear cut and convincing.
and will doubtless be accepted by Great
Britain as conclusive. despite the fact
that a contrary impression has been
entertained both by the British Foreign
Office and by the British Embassy in
this city.
That acceptance OF the representa-
tions If the Secretary Of state on this
point will go far to smooth out any
difficulty seems 10 bc fol ecasted by the
text Of the protest of July =. the first
received. in which the British Charge
said. apropos of remission Of tolls to
the coaStwisc trade:
" the trade should be SO regulated
as to make it certain that only bona
fide eoastwse traffic which is reserved
for United States vessels would be
benefited by this exemption, it may be
that no objection could be taken.
Secretary Knox was able 10 dispose
with equal facility and equally con
"iusiyely of the apprehension OF Great
Britain that free tolls for ships en-
Gagged in the coastwisc trade would en-
lance the charges imposed on other
vessels using the canal. an apprchcn-
sion based on tho assumption Of An in
innate relation between the tolls to be
charged and tho cost Of maintenance
Of the canal. including interest on the
investment. cost Of administration and
suitable provision for sinking fund.
Mr.. Knox makes 1t perfectly clear
that there is no such relation. and that.
instead. this government has deter
mined the tolls by a comparison with
those charged by the Sucz Canal and
by the prospective ability Of commerce
To- pay them. This objection was
strongly emphasized in the protest Of
Sir Edward Grew and. apparently, was
the occa sion OF tho utmost anxiety 70
Great Britain and 10 British shipping
interests.
The declaration Of Sir Edward Grey
that his government do not seek to
deprive the United states OF any liberty
which is open either 10 thcms Ives or
20 any other nation. nor do they fnd
TN tho letter or in the spirit Of the Hay
Paunccfote treaty any surrender by
either Of the contracting powers OF the
right 10 encourage it's shipping or its
commerce by such subsidies as II may
deem expedient." made tho task Of tho
Secretary OF state far easier than
seemed probable In the light Of the
earlier ard less mature protest ct
Great Britsi in in which it was declared
that
The proposal TO exempt all American
ships from tho payment Of tolls would,
in the opinion Of His Majesty's Govern
ment, involve an infraction OF tho
treaty. nor is there. in their opinion.
any difference in principle between
charging tolls only to refund them and
remittine tolls altogether.
With Great Britain admitting the
right Of the United States under the
treaty 10 grant subsidies measured by
tho amount of the tolls collected. it be-
came only a matter OF argument 10
demonstrat that simple remission OF
the tolls could be distinguished from
subsidy only in the method OF book
keeping. the ultimate effect being the
same. And In view Of the fact that the
Spanish Cortcs has under consideration
a measure granting TO its shipping a
subsidy TO be measured by the amount
Of the tolls collected at Panama il is
not believed that Great Britain logi-
Galley can object TO the remission OF
tolls proposed by the United States.
Careful study OF the communication
Of Sir Edward Grey has convinced Sec
rotary Knox that Great Britain has not