The Washington herald., 1914-08-03
CANAL ACT FIXED;
CRITICS SILENCED
Amendments In Panama Law
Admit Foreign Ships
to Registry.
r.unz nn
ADMINISTRATION IS GLAD
Framer of Legislation Explains Clause
Permits Wipins Out of Unfavora-
bic Legislative Restrictions.

A provision in the Panama Canal act.
passed by the Sixty-second Congress,
makes IL possible for the United States
I to admit foreign built and owned ships
I to registry and disarms In advance any
I criticism which might follow from for
( eign powers in the present emergency.
This is the attitude OF the administra-
! tlon In planning minor amendments to
I the Panama Canal act. These amend
ments will remove exactlon that foreign
( puIlt ships must be officered by Ameri-
cans; that they must be less than fiys
years old and must meet certain meas
urement requirements. These amend
ments only are necessary. and these
probably viii be offered in the House
today under a suspension OF the rules by
Majority Leader Underwood.
Clause Prohibits Course.
The clause which makes It possible for
foreign owned ships TO come under AmSri-
can registry Is the clause which osten-
sibly prohibits this very course. 1t pro-
vides that ships under American registry
must be owned by Americans or by Amer
lean companies, all the officers OF which
are Americans. Thus, a holding company
can be incorporated under the laws Of
one Of the United States. dummy Of
fiefs, each given one share of stock TO
qualify as directors. could be elected.
and then the company could take over
the ships and assets OF any foreign ship
owning company without an actual
change of ownership.
Considering the situation regarding our
shipping and the movement of our crops
as extremely critical. President Wilson
and members OF Congress are glad to
make use of this subterfuge, by wipins
out the few legislative restrictions which
now initiate against such a course.
Judge c. A. Adamson. chairman of the
Interstate and Foreign Commerce Com
mittee Of the House, framed the Pan
anna Canal act. He declared yesterday
that with the few amendments sug-
sested, the change OF registry would he
feasible.
AdamsOn Makes Comment.
THE foreign ships now handling trans
Atlantic commerce" said Judge Adam
son yesterday, ARE under obligations to
their own governments. This leaves our
crops in the United States instead Of in
Europe. We have our excess Of corn,
wheat, and cotton, and the question Is
how are we going to get IL to market
money into the building Of ships, even
II ships could be built in time, because
there is too much money in other things.
In the Panama Canal bill we inserted
q provision admitting to American regis
try foreign-built ships owned and on
cered by Americans. providing they can
meet certain measurement requirements.
These restrictions can and will be legis-
lated away as soon as II becomes certain
that the powers are going to commence
hostilities.
May Change Route.
ANY Of the coastwise vessels may en-
ter the foreign trade by merely sur
rendering their charter and registering.
and they may change back TO the coast
wise trade whenever they want to. One
company may have part of its ships in
the foreign and part in the coastwise
trade.
The coastwise trade easily can be
spared for the foreign trade. as the rail-
roads can perform in large part the func-
ton Of the coastwise shipping.
The fact that We provided for this
change two years ago will disarm any
criticism from European powers at our
accepting foreign-built ships TO registry"