PANAMA CANAL.

Mataura Ensign, 15 January 1913, Page 5

PANAMA CANAL.

* THE RIGHT OF CONTROL. ■ST BtKCTRIC TELEGRAPH.—COPYRIGHT PB« UNITED PRESS ASSOCIATION. 1 Received January 15, 12.35 n.in. WASHINGTON, Jan. U. Mr P. C. Knox's (Secretary of State) reply regarding the Pana!'.'-.' Canal follows President Taft's argument, that the United States has lnli rights of control over coastwise shipping. Ho also contends that there i-; nothing in the Hav-Pauucefoto Treaty amounting to surrender by the United States of the ritrht to regulate its own shipping t-hrouglu. the canal. He interprets Article 3 as binding all nations except the United States, which, however, iw bound not to discriminate acainst any of them, provided they observe the rule of management of tincanal.

Mr Knox expresses the willingness of Americans to do everything to adjust the dispute but does not mention sending a further British Note.

A. cable on November 14 stated: —President Taft has issued a •proclamation which fixes the Panama Canal tolls on foreign merchant and passenger vessels at 1 dollar '2O emits (os) per ton on the net actual carrying capacity of such vessels. A reduction is allowed of 40 per cent, on all ships in ballast. The tariff for naval ships —excepting colliers, transports and hospital ships—is fixed at 50 cents (2s Id) per ton (displacement). Such excepted vessels are to pay the rate of 1 dollar 20 cents per ton net. TinPresident's proclamation makes no reference to the British protest against the tolls. The rates are based on those likely to be enforced in the Suez Canal in 1913. Professor Johnson's report states that the canal will probably be self-sustaining in 1932. He recommends that the rate per net ton shall lie reduced after Tf).years. He expects that the canal will compete successfully for the New Zealand trade. Foreign traffic through the canal during the first two years is not likely to exceed !).000.000 tons; but an increase of 150 per cent, is 'expected in 10 years. It is N not expected that much Australian commerce will' l>e diverted to the Panama Canal, but some vessels will proliablv nass the canal bound for Japan, but intending to secure cargo at American points. Mr Tatt. expects that the economies effected on a v<ivago to the eastern States of A ustralif and to New Zealand will attract all the present traffic round Cane Horn.