The Washington herald., 1914-04-10

to exempt American ships engaged
exclusively in the coastwise trade OF
the United States, providing the sub
sidy SO granted shall be paid directly
out Of the Treasury of the United
States and not from a fund made up
: exclusively from revenues derived
from other nations. The free tolls
clause of the Panama Canal act does
not insure this course. It not only
might permit our vessels engaged In
foreign commerce to pass through the
canal free, but it does not specifically
prohibit American vessels engaged in
part in the coastwise trade Of the
United States and in part in foreign
trade from the benefits of the clause.
"JinEoIsm', Il Scored.
Senator Lodge dealt strongly with the
political phase of the controversy and
the 'adroitly stimulated passions" which
opponents of repeal are counting on To
defeat the President. He referred to
the anti-English campaign as a mere
posturing and defamation against an
other country, importing no danger and
adapted only to raise the temperature
around our polling places"
Urging the support of the President on
high patriotic grounds, Mr.. Lodge de-
clared that to repudiate his repeal pro-
posal would be to break down and dis
credit the representative Of the whole
country in the great forum of the ma
tions of the earth and paralyze his fu-
ture power and usefulness in that field
where he, and he alone. can declare and
represent the policies, the honor and the
dignity of the United States"
Summing up his reasons for desiring
the repeal, Senator Lodge concluded:
AFInaIIy, think 1t should be re-
pealed because n decent respect for the
opinions of mankind and the high po-
sitiOn of the United States among the
nations of the world demand IT."
Reviewing the negotiations that result
ed in the ratification of the second Hay
Pauncefote treaty. the primal object OF
which was to remove the Clayton-Bul-
wer pact with its Objectionable features,
Senator Lodge declared that the first
treaty was rejected by the Senate be-
cause it provided for participation OF
all nations in guaranteeing the neutrality
of the canal Two important Senate
amendments were rejected, but finally
were incorporated in the second Hay
Pauncefote treaty.
All these negotiations were carried
on with a view to the construction of
a canal along the Nicaragua route.
Later, the Panama route was determined
upon, and secured by the treaty with
Panama of 1SOS-19O4.
Depend on Panama Treaty.
The Massachusetts, statesman here
drove home the first point in his argu-
ment namely, that our sovereign rights
to the Canal Zone depend, not upon the
Hay-Pauncefote treaty, but upon the
treaty with Panama, without which the
canal never could have been constructed.
mo nation could, and no nation did,
object to the consideration paid Panama
for our rights and title on the Canal
Zone" he said. "As l have already
stated, there was a prohibition of the es-
tablishment of Notifications in the first
Hay-Pauncefote treaty which was omit
ted in the second treaty, and therefore no
objection can be raised to the establish
ment of Notifications by the United
States, as. the right is expressly given
it by the only authority which had the
power to grant 1.-THE republic of
Panama
Dealing directly with the question
whether the free tolls clause constitutes
a violation of our treaty obligations, Mr..
Lodge pointed out that the language of
the clause is ambiguous. in that it does
not state that the tolls exemption shall
be extended to American vessels engaged
exclusively in the coastwise trade of
jective was offered as an amendment and
turned down, indicating a belief on the
part of those fsvoring free tolls that
American vessels engaged in foreign
trade touching or shipping cargoes at
American ports also should be exempt
from the payment of tolls.
Senator Lodge based his stand in favor
OF repeal not upon a belief that the letter
Of the treaty has been violated, but on
Irnr -f,l,f
which does not conform to the spirit of
the treaty or the intentions of the franz
ers of the pact, would not justify this
country in diSregarding world opinion to
the contrary, particularly when sentiment
against us is united while there is
great division of opinion on our side.
The existence of a right and its exer-
else are two entirely different things" he
said. ''In the first place, there is a wide
and honest division of opinion as to the
correct Interpretation of the first rule of
Article 3 of the treaty and as to the
words all nations The opinion of for
eign nations, with hardly an exception,
and that only in the case Of some Indi-
viduals, is against the Interpretation
which I believe TO be correct. In the
United States opinion is divided, and alb
sence OF unanimity in the Interpretation
of the treaty on our side is not to be over
AOOhN~N
shall take.
"With such n division of opinion
among ourselves, i am not willing to
expose the United States to the impu-
tatiOn of bad faith among all other
nations by insisting upon deciding a
doubtful point, upon which we our
selves are not agreed, In our favor.
simply because we have the power to
do sO."
Discussing the argument that free tolls
with break into the high freight rates of
the continental railroads, Senator Lodge
said:
In this particular case. as the railroads
are specifically prevented from owning
ships passing through the canal, l do not
think that either the collection of tolls
or their removal would have any effect.
The transcontinental roads, with their
haul of 5000 miles, could by no possi-
biIity compete with rates for water-bOrne
freight"
Right Is UndIsputcd.
Our right to give this subsidy accord
ing to Senator Lodge, is undisputed. The
controversy arises over the method we
have adopted for granting it. If the
money is collected at Colon for the pas
sage Of American ships and then paid
back by the Treasury, so that the charges
for foreign vessels shall be based upon
only their share of the upkeep of the
canal, there can be no objection, accord
ing to Senator Lodge.
Mr.. Lodge declared that whatever the
strict legal Interpretation of the treaty,
the understanding between the individuals
who negotiated the Hay-Pauncefote part