The Republican journal., 1921-10-27
FREE PANAMA TOLLS.

The United STAGES Senate has recently
Panama tolls and on the 10th day of this
month voted, yeas, AZ, nays, 81, in favor
of allowing American vessels engaged in
coastwise trade, to pass through the
canal without paying for that privilege.
Without arguing the case from either
point of view we submit the following
undisputed facts concerning this matter
which of late has attracted our attention.
The United States paid the French
company which held the Panama Con-
rcesslon and had failed in the undertake
ing, about SAP, 100000. 1t paid Panama
$4,000 600 in cash and agreed to pay, in
addition, S250,00O per annum, forever
for strlp of land ten miles wide across
the Isthmus. Across this land it built
the canal at a cost of $4nO, O0O, ,0(O 1t
Colombia in settlement of somewhat
disputed claim which that country had
made against the United States. The
total cost of the canal was a little more
than S450,000,0O0 all in good American
money, plus the $3.50, 600 annual tribute
TO Panama.
The canal was opened fer navigation,
Aug. IA, 1914. The receipts for tolls
from the opening of the Canal up to July
/, 1920 were S33, $780, The cost of
operating and maintaining during that
period was $780, III, ,473.
Anticipating the opening of the Canal
Congress passed an act known as the
Panama Canal Act and this act was ap-
proved by President Taft Aug. "a, 1912.
The act in its major part provided for
the government operation and control of
the Canal, but in this presentation of
facts it is necessary to mention only a
part of Section 5, which reads as follows:
''The President is hereby authorized to
prescribe and from time to time change
the tolls that shall be levied by the
government OF the United States for the
use Of the Panama Canal. NJ
tolls shall be levied U ;on vessels engaged
in the coastwise trade Of the United
otates.'
Il may te Wei 10 remark in. passing
that under our Isws 10 foreign vessel:
are slowed to engage in our coastwise
trade. meaning the Transportation Of
lIcm 1ne American port to another
American port.
President Wilson did not favor free
tolls ana short time before the canal
was completed, with the consent Of Con-
gIess, tolls were levied against all ves-
sejs passing through it. Nothing political
influenced President Wilson or his Con-
gress II deciding against free tolls for
Amercau coastWise vessels. Their rea-
sons for SO doing will be found in the
Hay-Pauncefote Treaty between the
United States and Great Britain which
was 1attied and proclaimed about twenty
years ago. President Roosevelt was then
strenHously promoting the canal project.
John Bull was entirely willing that the
United States should buy the right of
way and construct the canal its own
expense, but il he could not have the full
benefit of its use he would negative the
enterprise He did not put it in that
crude way, but insteaf he said, sthere
must be basis of neutraliza ton of the
ship canal" President Roosevelt under.
stood what that meant and the Hav.
Pauncefote treaty was negotiated and
ratified by the United States and Great
Britain early in 1902 Article saws:
The present treaty shall supercede the
convention of the 18th of April. 1885,"
This was reference to the so.called
Clayton -Bulwer Treaty.
Article says: "The United States
adopts as the basis of the naturalization
of such ship canal the following rules
substantially as embodied in the conven-
tlon signed the 28th day of October. 1888
tor the tree navigation of the Suez Canal
that IS to say: The canal shall be free and