The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-02-14

said that if the trade should be so
regulated as to make it certain that
olly bona-fide coastwise traffic
would be benefited by this exemption,
1t may be that no objection could be
TAKEN Secretary Knox then drives
another argument home by asking if
the United States to be denied the
right to exempt such traffic simply
because England has a suspicion or
believes there is a possibility that the
regulations yet to be framed may not
restrict this exemption to coastwise
traffic entirely.
III Grey note expresses the fear
that the United States will, in re-
hitting the tolls on coastwise bust
ness assess the entire charges of main
tenance of the canal upon vessels in
the foreign trade, and thus cause
them to bear an unequal burden. To
his Secretary Knox has replied that
the British government is far from
the facts. He shows that this coast
wise traffic was computed by Pro-
fessor Emory johnson in his calcula-
lions, and the loss incurred by the re-
mission of these tolls will fall solely
upon the United States. He further
more calls England's attention to the
fact that the treaty gives the United
States a right to charge, in the very
words of Sir Edward Grey himself, a
toll that would return to the United
States the interest on the capital
expended and the cost of the opera
ton and maintenance of the canal"
AS a matter of fact, the United
States does not propose to charge
England a rate of toll that will yield
such eturns. Under the English con-
struction, w~arranting the United
states in charging a rate that would
yield a return on the capital invested
and the cost of operation and mainte-
nance, we might have fixed the rate
at nearly three dollars instead of at
$l.2o. 1t is estimated that our total
outlay on account Of the canal, in
Guiding interest, the cost of operation,
maintenance, and policing, will repre-
sent approximately $27, 00O, 900 a year.
Professor Johnson estimates that TO-
100000 tons, net register, or shipping,
Will pass through the canal to begin
with, and that this amount will be
increased to about 1900, 900 tons ten
years hence, and to some 27,000,0 900
tons in 1885. From all this it will be
seen that instead of working a hard
ship on England by RENTING tolls on
coastwise traffic, it will be nearly 30
years before England will be paving
for its shipping what it costs to main
tain and operate the canal for it's ben-
eft. This, of course, begs the ques-
ton of the treaty guarantee of equal
ity of treatment.
Secretary Knox observes that since
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
years to come, when we fix a rate
below that point we are practically
substituting every vessel that passes
through the canal, be it British or
American, foreign or coastWise. With
the British government recognizing
the right of the United States to ex.
empt its coastwise traffi provided it
does not add toll or other burdens to
British shipping, with the United
States, including coastWise shipping in
its estimates of tonnage upon which
to predicate a fixing Of tolls, and te-
ing in a position to guarantee thai
the exemption under the canal act
shall be limited to bona-fide coastwise
traffic. Secretary Knox Processes to
be unable to see what ENGLAND is COM
planning about.
In other than displomatic language
he thinks that England has gone of
half cocked-that it objects t. the
canal act, but that the act does not
fix the tolls. He charges them of ig-
noring the presidents proclamation,
which, he thinks, puts at rest prac-
tically all the fanciful injuries that
Sir Edward Grey thinks are about to
descend upon British shipping. He
avs their protest is a protest more
against may happen than against
what has happened. He thinks Great
Britain Is suing US because we have
the power to commit trespass against
our neishbor rather han because we
have committed such trespass.
In concluding his reply to Sir Ed
ward Grey. Secretary Knox politely
asked him to wait until the act and
the Presidents proclamation do indi-
cate that they will work inequality of
treatment or unjust and inequitable
~'AAS "E'f' nus NcooSiS, dlu A1htt
then, if Great Britain chooses to as
sert that they do, the question will be
raised whether the United States is
bound by that treaty to take into ac-
count and to collect tolls from Amer
lean vessels. But to date, he observes,
nothing more substantial upon which
to predicate action has made its ap-
pearance than a mere possibility.
Secretary Knox recognizes that Eng
land may want to inquire into the
matter to see if its shipping actually
is harmed, and indirectly offers to aid
In that inquiry. He says that if such
an inquiry still leaves a doubt in the
English mind, the matter could then
be submitted to a commission of in
quiry for examination, and that if
there is still ground for dispute over
the diplomatic phases of the con-
troVersy it might be submitted to n
joint high commission, as provided
for in the unratified arbitration
treaty.
| While MANY Americans believe that