Free Canal Tolls For All Our Ships.

New York Times 100 years ago today, August 9, 1912:
Senate Extends Coastwise Trade Exemption to Our Oceangoing Vessels.
TO AID MERCHANT MARINE
Registry Law Amended to Include Foreign-Built Craft Owned Here — Bitter Protests In London.
Special to The New York Times.
    WASHINGTON, Aug. 8.— Important amendments of a sweeping nature were added to the Panama bill In the Senate to-day. The free passage provision for American coastwise ships granted yesterday was extended this morning to apply to our foreign trade as well, provided that the owners of the ships in foreign service would sign an agreement that in case of war or other public emergency their ships could be taken over by the Government. In addition a change in the navigation laws of this country, for which the Democrats have been fighting for many years, was partially adopted on the motion of Senator John Sharp Williams of Mississippi.
    This amendment admits to American registry foreign-built ships exclusively owned by Americans. The limitations imposed on this amendment is that these foreign-built ships, when registered as American, shall ply only in the foreign trade. Earlier in the day Mr. Williams had tried to give American registry to foreign-built ships even in the coastwise trade, but with a split Democratic Party and the Republicans practically solid against him his amendment in that form was easily defeated.
    Mr. Williams's more sweeping provision, which was defeated, according to charges from the New England Senators, would close up every shipyard in the United States. Senator Root declared it would leave us unable to launch a single ship, and would cripple us before the world. As passed, however, the amendment only applies to the foreign trade to which American yards now supply practically no ships. It will therefore not take from American yards any shipbuilding business they now have. But it is believed that the provision will enable this country to build up a merchant marine by taking over bodily ships cheaply built at foreign yards. As these ships will be allowed free transit through the canal, it is expected that there will be a tremendous inducement for them to be transferred to American registry. So convinced was Senator Hoke Smith of the effectiveness of this inducement that he predicted on the floor to-day that every ship sent through the canal would fly the American flag and go through free.
    The votes to-day to a great measure ignored party lines. The proposal for free passage for ships in the foreign trade, subject to appropriation by the Government in time of war, had against it ten Republican votes and twelve Democratic.
    In general, the Republicans of New England voted for American favors. That was in large measure the line-up last night, when coastwise favors were at stake. To-day, when the question of the ocean trade came up, the Republicans who voted against the measure were Senators Burton of Ohio. Catron of New Mexico, Dillingham of Vermont, du Pont of Delaware, Fall of New Mexico, Gronna of North Dakota, McCumber of North Dakota, McLean of Connecticut, Page of Vermont, and Root of New York. The split in the New England vote has been generally attributed to the conflicting interests of the ship owners and the railroads.
    The Williams amendment granting American registry to foreign ships received the support of thirteen Republicans. They were in two groups — first, the tariff reformers, who have always supported some such measure, and, secondly, a few scattered Senators from the interior who are interested in anything that will tend to cut down the transcontinental railroad rates. To these must be added Senator Root, who has opposed all favors to American shipping and who bitterly denounced the first form of the Williams amendment
    An agreement was reached by the Senate late to-night to have a final vote on the Panama Canal Administration bill and all amendments to it not later than 5 o'clock to-morrow afternoon,
    It is expected that Great Britain will take notice of the proceedings in Congress on the matter of tolls, and that it will not be necessary for Secretary Knox to send advices.
    It is believed that President Taft and Secretary Stimson have not changed their opinions as expressed in speeches that the United States has the right to remit the tolls or grant rebates to American ships.
    Students of the situation point out that Great Britain could reduce the tolls of the Suez Canal to a point that would divert to the Suez a great share of the prospective business of the Panama Canal and cause considerable financial loss to the Panama Canal.