Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-06-10

Cy, IN the QlSCrStlOn Oh the fTeSlueHt, up
on payment to the owners of the fair
actual value at the time Of the taking.
That provision went out in confer
ence committee on account OF the eco
nomic policy involved, but its inser-
ton was a clear construction of our
treaty right to exempt all vessels fly
ing our flag from tolls.
AS PRESIDENT TAFT CONSTRUED
THE HAY-PAUNCEFOTE TREATY
President Taft, in his message to
Congress in December, 1911, said:
I am confident that the United States
has the power to relieve from the pay
ment of tolls any part of our shipping
that Congress deems wise. We own the
canal. 1t was our money that built IT.
We have the right to charge tolls for its
use. Those tolls must be the same to
everyone, but when we are dealing with
our own ships, the practice of many gov
ernments of subsidizng their own mer-
chant vessels is so well established in
general that a subsidy equal to the tolls,
: as equivalent remission of tolls, can not
be held to be a discrimination in the use
of the canal The practice In the Suez
Canal makes this clear.
After the passage by both Houses
of Congress of the Panama Canal act,
, President Taft, on Augusta 10, 1912,
sent a message to Congress, in which
he said
After full examination OF the Hay
Pauncefote treaty and of the treaty
which preceded II, | feel confident that
the exemption of the coastwise vessels
of the United States from tolls and the
imposition of tolls on vessels of all ma
tons engaged in the foreign trade Is not
violation of the Hay-Pauncefote treaty.
Secretary of War Stimson, in his an
nual report in 1911, said:
Involved in the problem of fixing tolls
is the question whether the United States
has the right under the treaty to pay the
: tolls on American vessels using the
canal. An examination of the treaty and
the surrounding circumstances to my
mind, leaves no doubt as to the right OF
the United States. both legally and NOR
ally, to pay the tolls on its vessels. This
Is perfectly recognized practice in re-
spect TO the tolls of the Suez Canal, the
: toll rules of which canal were adopted
by the United States in the Hay-Paunce-
fote treaty for the government of the
I Panama Canal. At least one of our ma
tional competitors in the use of the Pan
anna Canal-Spain-has already taken
steps to provide for the payment out of
} her national treasury of the Panama
tolls on one of the Spanish lines which
will use that canal. Furthermore, I can
see no difference, save in form-provided
the tolls for other nations are kept rea-
sonable, as we have also covenanted to
do whether the United States should
=, make this appropriation out of her own
treasury to American vessels, by receiv-
ing the toll money from them first and
repaying 1t to them, or by simply re-
lieving them from the payment of tolls
in the first place.
Secretary of Commerce and Labor
s Nagel, in his annual report of 1911
said:
Every state In the Union with naviga-
} BILE waters crossing its boundaries fur
niShes preeedents of congressional appro-
priations for the establishment and main
tenance of improvements at the continu,
ing expense of the Federal treasury and
without a dollars help from the vessels
which enjoy the advantages of such i'm
! provements. Where the future of Ameri-
can shipping is at stake and the domes-
tic commerce of both seaboards and the
Gulf is involved, there is no apparent
reason to depart from a principle which
has been so constantly invoked.
The Panama Canal IL being built in the
belief that IL will benefit all sections or
the country and nearly every form of
American industry. Our merchant ships
and shipyards are as essential to the Ma
: ton as our battleships. They have at
least a claim to equal consideration in
canal legislation and appropriations with
other American idustries Every argu-
ment to tax the American merchant ship
which uses the canal would apply with
equal force to tax directly on American
/; cotton, lumber, fruit, coal, grain, and
other cargo carried by the ship through
the canal 1t is feasible to use the canal
for the promotion of American naViga-
ton In a manner consistent with treaty
obligations, with precedent at home ana
abroad and with our fixed policy of un-
: taxed navigation on improved water
ways.
The treaty was also construed the
same way in a proposition submitted
by myself in the Sixty-first Congress
and approved by President Taft, Sec
rotary of War Dickinson. Secretary of
State Knox, and others, and which
was as follows:
The President is hereby authorized to
prescribe and, from time to time, change
Charges may be based upon registered
: tonnage. displacement tonnage, cargo
tonnage, or otherwise, and when based
upon registered tonnage shall not ex-
coed $3.50 per net ton, American meas
urement, nor be less (other than for YES
sells of the United States and its citizens
and vessels of the Republic of Panama)
II than 80 cents per net ton; nor shall any
rate of charge be prescribed which Is less
than the estimated proportionate cost OF
the. actual operation OF the canal, SUP
} ject, however. to the provisions of Arti-
Gle 10 of the convention between the
United States and the Republic of Pana-
ina entered into November Is. 1903, and
the right OF the United States to pass Its
own vessels, troops, materials, merchan-
disc. and supplies without the payment
1 ! of any charge.
TOLLS ON GOvERNMENT-O OWNED
Ie VESSELS.
Let US see what our position will be.
Suppose the English construction of
J the treaty shall prevail. Do We pay
tolls on our war vessels going through
4 the canal? The treaty treats war ves-
sells and vessels Of commerce alike.
Do we pay tolls on our war vessels?
Well. suppose it be said we do not
pay tolls on our war vessels, and sup
pose, as proposed in the Senate the
other day, our cruisers carry freight
/ between the United States and South
America. Will We pay tolls ON our
cruisers engaged in the carrying
trade? Or suppose in connection with
the Alaskan Railroad we construct a
s,line of steamers between Alaska and
| Pacific ports and extend 1t to the At
Y lantic coast. Do We pay tolls on those
Hsvesselsi And l pause for any gentle
/ man to answer yes or no who is in
favor of this bill. would like to get
"a rise out of one of them. Will we be
obliged to pay tolls on a Government