The Sentinel=record., 1914-04-14
TOLL ECONOMY
 TALK BY SENATE
ECONOMIC FEATURES OF CANAL CONTROVERSY IS DISCUSSED
 BY COMMITTEE.
Commissioner Chamberlin Says the United States Has No Right to Exempt Any Class of Ships.

Washington, April 13-The eco homie side of the Panama tolls con troversy occupied the senate inter | oceanic canals committee today to the virtual exclusion of the treaty ob- | ligations involved and neither aspect | was in evidence elsewhere about ] congress. At the white house how | ever, President Wilson reaffirmed his belief that repeal of the exemption of American coastwise ships would not constitute an interpretation of the Hay-Pauncefote treaty, but merely would indicate the unwilling ness of this country to bring up the question of discrimination.
 The president agreed with the views recently expressed by Secre- tary Bryan. that no amendment was necessary to the pending repeal bill reaffirming the sovereignty of the United States over the canal
 Before the canals committee E. T. Chamberlain, federal commissioner of navigation, and Prof. s. s. Hueb- ner of the University of Pennsyl- vania, discussed the economic ques- ton of tolls exemption in a general i way. Professor Huebner for two years was employed as an eXpert by | the house merchant marine commit | tee and data which he compiled as | to the coastwise shipping at that time was laid before the committee | today for it's information.
 Commissioner Chamberlain de- clared his belief that the United l States had no right to exempt any of it's shipping from payment of tolls unless it specifically provided that the government should meet the eX- pense of passing the exempted ships through the canal, and that the eX- emption should not add in any way to the burden imposed on foreign shipping.
 Professor Huebner expressed no opinion nthe repeal issue confining himself to the economic discussion growing out of the statement that
 the house investigation had shown
 over 90 per cent of the coastwise
 ships on the Atlantic coast and 90
 per cent of those on the Pacific
 coast were controlled by railroads
 or conferences of steamship com
 panies. so far as rate making is con
 cerned.'
 The only other witness heard was Walter Wood. representing the Phil
 adelphia chamber of commerce. who presented resolutions adopted by that body. The sense of the resolu- | tions was that inasmuch as the navi-
 gation laws of the United States imposed upon American coastwise ships burdens greater than those
 known to foreign shipping, equal use of the canal should be granted to both but with the provision that for eign ships carrying to American ports should pay a fee equal to the excess in cost of operation and con struction under American laws. He | estimated this at IS cents a net tono | and said members of the British board of trade in personal conversa- | tion with him had expressed willing ness to have such a fee imposed in order to equalze conditions in ac- cordance with treaty provisions.
 Commissioner Chamberlain as serted his belief in subsidy for American ships, declaring that the matter generally was misunderstood by the public. The subsidey of for eign governments, he said, showed it to be a military measure and not commercial The United States should look at it in the same light, he thought.
 Professor Huebner exuressed be- lief that the tolls question would have little bearing on freight rates. Shipping conferences, he said would charge "all the traffic would bear and. if tolls were remitted, the ship owners and not consumers would benefit. His assertion that the Panama railroad ships, owned and operated by the government, were in one of these conference agreements | aroused interest in the committee. Discussion of treaties by today s witnesses was discouraged Chairman OGorman remarking, The commit tee is not auxious to receive any eX- pert legal advice. Each member is drawing his own conclusion as to that"
 Prof. Emory Johnson, who made he Computations of traffic and costs upon which was based President Tafts proclamation fixing charges
 for use of the Panama canal, will ap- pear before the committee tomorrow. IT