Evening star., 1927-05-08
COMM|SSAR|ES HIT
BY PANAMA GROUP
Business Men Protest "Un-
fair" Methods of u. S.
Government Stores.

ernment commissaries in the Cana
zone are to he brought to the atten'
ton of President Coolidge by tht
Panama group of the Pan American
Commercial Conference, with re-
quest that he take steps 10 cuftaI
governmental sales activities in tbs
futuue.
This was the course decided upor
at a meeting of the Panama gfout
Yesterday when formal resolutions
based upon a memorandum submit
ted by delegates of the Panama AS
sociation OF Commerce. We're adopted
unanimously Setting forth the com
mercisl activities of the Government
IN the Canal Zone. the memorandum
stated that The mderseliing of pr1-
vate firms by the government com
nisSaries would not he tolerated 10
any circumstances by American Citt-
zens in their own country. Con-
tinuance Of this competition, bene-
fitted by the free importation Of
Government merchandise and food
stuffs. the. group held, will increase
the injury already wrought upon pri-
waite business in the City Of Panama
and throughout the Canal Zone,
Committee Is Appointed.
A committee was appointed 10 look
into the matter and adopt resolutions
As we'll as TO bring the grievance to
the attention of President Coolidge.
This committee is composed of George
y. Arias OF Panama. Enrique A,
Jimenez of Panama Walter :. Pen
field Of Washington, n. A. Claddins
Of Indianapolis. Ind. and William NJ.
Benney of, New York. a letter to
President Coolidge was drafted by the
American members.
Recommendation contained in the
resolutions provided:
Appointment of a joint commlsslop
nv the Republic of Panama and the
Government of the United States for
the purpose of making a study of the
problems presented in the memo,
randlun Of the Panama Association OF
Commerce and that thereafter the
commission shall be requested to hie
q report with both governments oil
its findings.
Negotiation of commercial treaty
between the two governments moor
norating the suggestions of the com
mission. Composing the COMMISSION
the resolution stated should be three
representatives of each government
to be selected respectively from the
shining and mercantile interests ana
the legal profession.
Cites Hay Treaty.
II was the sense of the group meet
ino that the merchants of the RepuD-
1ir of Panama should not ma any
obstacle to the development OF lnelI
commerce in operations of the United
States Government carried on IN laFof
of anv persens or entities except It's
own employees or members OF us army
and Navy in the Canal Zone.
The memorandum of the Panama
Association of Commerce declared lnal
although the establishments IN the
Canal Zone engaged in the lmporla-
tion, purchase and sale Oh nefcndn-
disc are commonly designated as Pan
s1aa Railroad Co. commissaries, they
fire in fact. Government commissarles,
for the reason that it is the United
states alone that has the right TO
make such imports, according 10 the
terms of the Hay-Bunau Nar1iia
treaty.
The Government opened up its COM
n7issaries in 1905 on account of the
large number OF employees in the
Canal Zone. From that moment, -
saws the memorandum, there mas
heen a never ending conflict between
the commercial interests or the he
nllblic of Panama and the commerclai
interests of the American Government
in the Canal Zone, the latter actlVltleS
being in a form that would not be toll
Grated in any circumstances by amer
lean citizens in their own country.
Since the completion or the Fahati1a
Canal. the complaint declares, tne
limitation has been removed from the
80 hn
cornrnissaries and an empleSe could
draw upon his full pay with coupon
books at the stores.
purchases are not confined solely to
Government employees. the memorah'
dunn declares. for under the operation
of these stores, employees can dfa@
for outsiders. there being no limit 10
the amount of purchases.
Freight Rate Opposed.
"Such purpose of course" the memo
randum states were made for two
reasons first to evade the customs oI
Panama on the part of the non-em'
Move. second to take away just that
much business from some merchant III
this country. Perhaps also the EN-
ploye might have obtained a confnis'
sion or profit for joining the consplf'
acY to tufnlSn tnS ulSl SlCAoiioAES
such non-employe.
one of the principal reasons why
Panama desired it's independence
from Colombia its memorandum
points out, was that it expected 70
augment its commerce and specially
TO supply the vessels that would make
use of the canal in the yoyaglng from
one ocean to the other
The merchants of Panama are not
directing their attack alone against
the sales activities OF the commlssa'
ries. Their complaint is more faf
reaching. They feel that the Panama
Railroad Co. charges freight rates
that are excessively high considering
4S-mile haul. The difference u
prices of goods sold by the comfnls
saries and by the merchants OF rama
ma. it was said, is caused largely by
the minimum freight rate charged II
the former. and the very high rate
that is charged 10 the latter.
I'VE trust that the reasons set fortI
will be taken into consideration, the
memorandum stated, and will leac
to an immediate reduction in frelgl'
rates" In this respect, the merchants
of Panama were declared to be stu
waiting for fulfillnent of the promise
Of this Government made in 1917.
I'VE have no doubt that the Amer
ican people have no burning ambition
10 eXterminate the commerce OF oui
city" the memorandum continued
"and that, If the facts are laid before
their representatives., the latter VII
readily agree that the activities oi
the commissaries can be restricted
without, at the same time, causing
injury TO the Panama Canal or TO tht
railroad or to any of the auxiliary
works"