The Washington herald., 1921-04-25

BITTER FIGHT
TOFREE CANAL
Borah to Urge Exemption
of u. s. Coastwise
Vessels.
COMMITTEE TO ACT
EARLY THIS WEEK
Conservatives Fear Retail
iatory Measures from
British. ......-

Proposed legislation exempting
American ships from the payment
of Panama Canal tolls is destined
to stir up a big ruction In Congress.
in which President Harding is eX-
pected to take hand at an early
date.
The Senate Committee on Inter
oceanic Canals. Of which Senator
Borah is chairman, is scheduled to
begin consideration this week of
the Borah bill exempting American
coastwise ships, and of the Jones
and Poindexter bills exempting All
American ships from canal charges.
The Republican national platform
last year for the first time declared
for toll exemption for all American
ships. but Senator Borah. who in
dorses the platform declarations,
thinks that, in viey of the opposi-
tion it will be easier to put through
a bill applying to coastwise ships
only.
In Line With Treaty.
Senators Borah, Knox and most
other advocates of toll exemption
hold that such legislation would not
be in contravention of the Hay
Pauncefoote treaty with Great Brit
ain, under which the United States
built the canal. contending that the
provision for equal passage terms
to the ships of all nations applies
only to the ships of all nations other
than the United States.
President Harding favors toll ex-
emption, but has indicated that IL
should be achieved through a new
understanding with Great Britain.
Whether he will halt the proposed
legislation pending negotiations
with England. or endeavor to adjust
afterward any differences arising
with Great Britain or other nations
from the exemption, remains to be
seen.
Operated at Preat.
Last year the canal earned &c.
295,362 in tolls. OF which S4,724,4s4
were paid by 1881 American ships,
Ss.257.sS7 by s67 British ships, s5s3,-
$40 by. l22 japanese ships and s4II =
423 by Ill Norwegian ships. A total
of 2.s1f vessels representing more
than fifteen nations. passed through h
the canal
The maintenance cost, including
100000 for betterments, was 81
44S,272. leaving a surplus Of So s47- =
$50. Since the canal was opened the
upkeep cost has been $3s, ZOO. 900 md
the aggregate tolls $4,000, 900, but
II is estimated that after July l
next there will be a surplus Of ;5.-
900 900 a year at present toll rates
with American ships paying tolls.
OF the 16,324.024 tons OF all
American shipping. 3,sSs.755 tons, or
less than one fourth, passed through
the canal in 1920.
Subsidy f. Feared
The opposition to toll exemption
is based on a variety of contentious
II is asserted that II would be a
violation of the treaty and that even
IL a new understanding with Great
britain were reached the exemption
would be a subsidy to one-fourth
part OF American tonnage using the
canal as well as a discrimination in
favor of seaboard producing and
shipping interests against compet-
ing interests in the Middle West
which must depend upon rail trans
portation. A Chicago manufacturer
for example, could not lay down by
rail transported products in Cali
fornia so cheaply as hfs New York
competitor shipping via canal toll
free.
American and Canadian ships now
pass through the Canadian canals
on equal terms and by some II is is
feared that the proposed Panama
discrimination in favor of American
ships would lead to retaliation by
Canada both in regard to the pres
ent canals and the contemplated st.
Lawrence waterway.