Free Tolls Plan For Our Ships Is Dead.

New York Times 100 years ago today, July 18, 1912:
Senate Against It, and May Pass Immediately the Canal Bill Adopting the British View.
HOUSE AGAINST SUBSIDY
Which Is Likely to Seal the Fate of Lodge's Refund Compromise — Canadian Railways Accused.
Special to The New York Times.
    WASHINGTON, July 17.— The supporters of free passage through the Panama Canal for American ships admit that the proposal is dead. The fate in the Senate of Senator Lodge's compromise measure providing for the collection of equal tolls from all ships and a refunding in the case of American ship owners is not so certain; but it is known that the House is irrevocably against this or any other measure that looks like a ship subsidy. That means that this country will accept Great Britain's interpretation of the Hay-Pauncefote treaty and impose the same fees on American as on foreign vessels.
    So confident of success are the supporters of the British contention to-night that even the opposition concedes that delay is now out of the question. Last night it was thought that the greatest effect of the speeches of Senators Burton and Root would be to cause a postponement of contentious matters until next session. But after to-day's debate, in which it was evident that the Senate was overwhelmingly in favor of a strict observance of the treaty, the opinion was expressed that the measure would be pushed forward to a vote.
    Senator O'Gorman of New York, and Senator Lodge of Massachusetts to-day spoke, vigorously in favor or this country's rights to exempt American ships from all levies. But it was the colloquies their speeches occasioned, more than anything else, that marked the change in the sentiment of the chamber in the last two days.
    Mr. McCumber of North Dakota made an exhaustive review of the history of the existing treaty to show that in order to obtain, its advantage's this country willingly and with open eyes deeded away its rights of exemption, and his speech seemed to command the general support of the Senate.
    The speech of Mr. O'Gorman was not far short of an attack upon Great Britain. He declared that her contentions now were without moral or legal foundation, and he endeavored to show that the whole controversy was an after thought. Opposition to American exemption, he urged, was a device of the transcontinental railroads to avoid dangerous water competition, and what the Senator said on that point agreed with representations made to the President and Secretary Knox earlier in the day by Representative Knowland of California.
    "Not the slightest objection was made by Great Britain," said Mr. Knowland, at the White House, "until a committee of Canadian railroad men took the question up with the British Government. There is little doubt that American transcontinental railroads prompted the move."
    Senator Lodge, at the opening of the debate in the Senate to-day, declared the United States had retained full rights under the Hay-Pauncefote treaty to form its own policy toward American vessels, and he defended the provision for free tolls to American ships. He had been the member of the Foreign Relations Committee which reported the draft of the Hay-Pauncefote treaty, he reminded the Senate.
    Senator Lodge admitted that the question of the free passage of American ships probably would be sent finally to The Hague, but suggested that such a course could be avoided by the United States Government paying the tolls on American-owned ships. No foreign Government, he contended, could object to that.
    "We never permit any foreign power to interfere with our disposition of our own money in connection with our own property," he said. "There is little doubt what the result would be of the matter should the question be submitted to The Hague."
    "Don't you think we would lose?" asked Senator Smith of Georgia.
    "Unquestionably," Mr. Lodge replied, and then referred to Canada.
    "The whole cause of this action by Great Britain is Canada," he declared. "Canada is the only country situated as we are in reference to the, canal. England is not worrying about her own merchant marine. Her shipping would not be affected by any arrangement we make for the tolls to American ships. The whole trouble lies with Canada; she fears that all the Canadian traffic will go through American ports if American ships receive free passage in the canal."