Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-05-12
Southern Senator Shows
That Exemption is Only
Coastwise Subsidy.
Is NOT FAIR TO OTHERS
Ships Engaging in Foreign
Trade Ones Really Needing
Assistance, He Says.

Washington, d. c., May 12-Senator
Hoke Smith of Georgia today cham
pioned repeal OF the clause in the
Panama canal act granting exemption
of tolls to American coastwise vessels
n the coastwide trade. He told the
senate he would vote for repeal be
cause OF our treaties with Great Britain
and Panama" and because in his opin-
ion 'it is right that the owners of
these vessels should bear. for using
the canal, fair part Of the. cost Of our
government OF building and operating
it,"
Summarizing his objections to ex-
emption Senator Smith contended
that:
That coastwise vessels will natural
ly stop at the ports OF Cuba, Mexico,
Central America, Panama, and per
haps, elsewhere. Their cargoes will
not be limited exclusively to bona fide
coastwise traffic OF the United States.
Traffic from foreign countries will
be unloaded at ports of the United
States to be Immediately reloaded in
a coastwise vessel for passage through
the canal to the opposite coast of the
United States, thus in reality carry
ing through the canal foreign traffic in
coastwise vessels without paying tolls"
Reviewing the history of the Pan
anna tolls legislation, and quoting from
a speech accredited to former Presi-
dent Taft early this year, the senator
said:
Says Taft is Wrong.
"Mr. Taft was wrong is supposing
that the idea of democratic senators
and congressman in voting to free the
coastwise trade from tolls was to give
a subsidy to our coastwise ships. Had
they known that he considered it neces-
sary under the treaty to fix the tolls at
a rate which estimated payment of
tolls by the coastwise vessels, thus
making the freedom OF the coastwise
vessels from paying tolls a clear sub
sidy, democrats would not have disre-
gafded their party platform and the es-
tablished principles of their party by
voting for this subsidy
Those who seek to restrict the
meaning of the Hay-Pauncefote treaty
by picking here a word and there a
word in disregard OF the entire tenor
OF the treaty" he continued, merely
disclose the unshakable fact that the
treaty intended to provide for the use
of the canal by the citizens of the
United States and the subjects OF
Great Britain and of other nations OBJ
serving the rules prescribed, so that
against any of the citizens with respect |
10 the conditions or charges of traffic |
for passing their commerce through |
he canal"
Treaty Part of Title.
Senator Smith declared that the Hay /
Pauncefote treaty is made part OF
he title to the canal zone in the treaty 1
IF conveyance from Panama, and that /
.alk OF terminating IL from a legal .
standpoint was absurd" Termina-
ion OF the treaty. he asserted, would /.
compel us to give up the canal unless
We abandoned our attitude as a law
abiding nation and resorted alone to /
and brute force to keep the
property.
"Our right to fortify and use the ca
ial as a national Defense. he added,
followed ownership of the zone, and
treat Britain, by promptly conceding
his fact. conformed to the terms OF
he treaty.
Mr.. Smith said that the contention
hat the words "all nations" in the
reaty mean "all other nations" and do
lot include the United States, 'is based
pon a rule of construction which
night have been applicable If the
United States at that time had owned
he canal and the territory through
which the canal was built. and was
imply granting a privilege to some
ther nation.
That contention, he declared, how
yer, would have had no force under
he present treaty. because il declared
hat the general principles OF neutrali-
alton of the Clayton-Bulwer treaty
hould not be impaired.
Canada and South America.
Outlining the interest which Can
da and the countries OF South Amer
"a had in the tolls controversy, Sena-
DR. Smith said:
When the president in his message
to other difficulties to be
aused by the passage OF our coast
Use vessels through the canal with
Mt charge, while i do not speak ex
athedra, I may well conceive that he
ad in view our general relations with