The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-12-29
PANAMA CANAL TOLLS

No small amount of interest at
taches to the announced intention Of
President-elect Harding to seek, Il
possible, new understanding with
Great Britain removing the provision
of the Hay-Panncefote treaty pro.
hibiting the exemption of American
ships from payment of Panama canal
tolls. The president-elect, while in
Washington to attend the opening OF
the short session of congress, init
mated that he knew way to reach
such an understanding with the
British" but he did not go into par
ticulars. Nor has he elaborated his
statement since his return to Ohio.
The Hay-Pauncefote treaty proyides
that:
THE canal shall be free and open
in time of war as in time Of peace to
the vessels of commerce and of war
of all nations, on terms of entire
equality, SO that there shall be no
discrimination against any nation or
its citizens or subjects in respect of
the conditions or charges of traffic
or otherwise"
When congress, in 1912, included
In the Panama canal act an exemp-
ton OF American coastwise shipping
from the payment of tolls Great
Britain protested that this was vio-
lation of the treaty provision. The
exemption was defended by the Taft
administration as not repugnant to
the treaty, but in 1914 President
Wilson disagreed with his party
platform announcement favoring
free tolls and caused congress to re-
peal the provision of the canal act.
Senator Root and other authorities
on international law contended that
the exemption of even coastwise
shipping was a violation of the
treaty. Defenders of the exemption
argued that it was no discrimination
against foreign shipping because
foreign vessels are excluded from
American coastwise trade and there
fore, do not compete with American
coastwise ships.
This latter argument, however,
will not hold in regard to the ex-
emption of American ships in over
seas trade, as is proposed by the Re-
publican platform, which says:
I'VE recommend that all ships en-
gagged in coastwise trade and all yes
sells of the American merchant ma
rine shall pass thru the Panama
canal without payment of tolls
In view of British protest against
the exemption of coastwise shipping
one can easily imagine the opposition
of England and other nations to the
exemption Of all American ships. It
would be an unusual consideration
which would incline Great Britain to
consent to q revision of the treaty so
as to permit the discrimination.
In this connection, It is pointed
out that Canada has maintained the
Welland canal toll free, and that ex-
emption of American ships from pay
ment of Panama tolls might en-
gender retaliatory measures, such as
the exaction Of tolls from American
ships passing thru the Welland canal
and the prospective st. Lawrence
waterway. @
II The coastal states are strongly in
favor of the Panama exemption,
while business and agricultural in
terests in the interior are opposed to
it on the ground that it would con-
stitute a subsidy to American ships |
and d discrimination In favor of COM
peting seaboard producers. Unless
freight rates were reduced proper
tionately, the Chicago manufacturer
could not lay his product down In
he Pacific states SO cheaply, for ex-
ample, as could the New York manu-
.acturer shipping by the all-water.
Salt Lake Tribune.