THE PANAMA CANAL.

Otago Witness, Issue 3017, 10 January 1912, Page 25

THE PANAMA CANAL.

RUMOUR OF PREFERENTIAL TREATMENT. LONDON, January 3. Sir Ow«n Phillips expresses the hope that America, will make the passage of the Panama Canal as free as the ocean. If it is decided to fix a toll ranging from to 4s per ton, it is important that all nations shall be treated alike. January 5. A rumour is current that the Government of the United States is contemplating a scheme of indirect preference on vessels using the Panama Canal, and the report has already excited keen controversy. When interviewed on the subject, Sir William Hall-Jones declared that the United States could give to her own shipping compensating bonuses equivalent to the amount of the canal dues without infring the terms of the Hay-Paunceforte Treaty. In addition to a gain of mileage, New Zealand vessels that might use the canal would save from 30 to 40 per cent, in their consumption of coal or oil, compared with the present cost of coaling at Montevideo. In Sir William’s opinion, the American mercantile marine is not strong enough to beconie a formidable competitor. with the British ships; therefore it is not likely that the Government of the United States will damage the material interests of the canal by making it unprofitable to the principal potential users of this new highway.

Writing on November 15, the Washington correspondent of The Times states: “ A highly important contribution was made hist night by Mr Stimeon, Secretary for War, who is officially responsible for the Panama Canal, to the controversy which has lately broken out with renewed vigour about the shipping dues. The question which exercises American public opinion Is whether the Hay-Pauncefoto Treaty of 1901, with its clear provision about equality of treatment for vessels of all nations using the canal, precludes the possibility of extending some kind of special privilege to American shipping. Mr Stimson evdently thinks that the thing can bo managed. Various countries, ho pointed out, reimburse their mercantile marine for the expense of traversing the Suez Canal. Let the United States (and presumably other countries if they want to) adopt the Same principle at Panama. ‘ I think,’ said Mr Stimson, ‘ that the United States has a clear right to appropriate to vessels sums paid into the Treasury by those vessels in the form of canal tolls.’ ” -