THE ROLL CALL

...In limiting the toll rate to $1.25 per ton, and in fixing the specific rate at $1.20 under the presidential proclamation, pursuant to the statute, Congress was required to meet the competition of the Suez Canal, now eon-trolled by Great Britain, the toll rates for that canal at the present time being $1.20 per ton...

...This disposes of my first contention...

...Unselfishly we offer its advantages to all the nations of the world...

...If we assume that this interpretation of the Hay-Pauncefote treaty is the correct one, it would nevertheless follow that THE EXEMPTION OP COASTWISE VESSELS CAN NOT CONSTITUTE A VIOLATION OP ANY OP ITS PROVISIONS...

...In its general acceptance a term denoting international traffic in goods or what constitutes the foreign trade of all countries as distinguished from domestic trade...

...Great Britain changed her policy under the treaty of 1815 only in recent years, when she opened her coastwise trade to the vessels of other nations...

...The Panama Canal bill, as it passed the House of Representatives in June, 1912, contained the exemption of coastwise vessels...

...It does not relate to vessels engaged in local or domestic trade...

...They are not vessels of commerce within the authorities cited...

...The words "vessels of a nation" have received among commercial countries their own interpretation by long custom and acquiescence, and are accepted as embracing only such vessels as ply between one foreign ountry and another, so that in the negotiation of treaties the contracting parties never have in contemplation coastwise vessels of either country...

...Only American vessels are engaged in American coastwise trade, and the provisions of the Panama Canal act make it clear that the exemption is to be restricted to vessels engaged in that trade, and that there will be no difficulty in confining the exemption to vessels devoting themselves exclusively to the coastwise trade was made clear by abundant and satisfactory evidence given before the commmittee in its recent hearings, and notably by the evidence of Mr...

...This case reached our Supreme Court, which decided against the contention that the discrimination complained of constituted a violation of the treaty...

...It was not possible, therefore, to fix a toll rate on a basis of securing a reasonable return upon the cost of construction and maintenance...

...We pursued the same course regarding our coastwise shipping, and our right to do so was expressly affirmed by the decision of the Supreme Court of the United States in the case of Olsen against Smith (195 U. S., 332...

...The canal will not, therefore, be self-sustaining and the United States, owner of the canal, will for a long period be required to suffer an annual loss of upward of $17,000,000...

...Now I am quoting from British authority Which marks the distinction between commerce and trade and the consequent distinction between vessels of commerce and vessels in trade, one being 'international and the other being purely local...

...Wharton's law dictionary, a British authority, defines commerce as: The intercourse of nations in each other's produce and manufactures in which the superfluities of one are given for those of another and are the re-exchange With other nations for mutual wants...

...Iu view of the concession of the British Government it may well excite surprise that this question still remains the subject of controversy...

...THE RIGHT to make this exemption has been challenged by the British Government, and the- claim has been made that the exemption constitutes a violation of the Hay-Pauncefote treaty...

...I think these considerations to which I have asked vour attention clearlv establish that COASTWISE VESSELS DO NOT COME WITHIN THE CONTEMPLATION OP THE TREATY, and that THIS WAS CONCEDED BY GREAT BRITAIN...

...As held in Olsen af/ainst Smith, supra, the exemption of coastwise vessels does not concern vessels in the overseas trade, and therefore can work no discrimination against British vessels engaged in the foreign trade...

...The propriety of Great Britain's preferential treatment of her coastwise shipping under the treaty was never questioned...

...In the treaty of commerce and navigation which was concluded with Great Britain on July 3, 1815, six months after the treaty of Ghent, it is provided on behalf of Great Britain that— No higher or other duties or charges shall be imposed in any ports of Great Britain on vessels of the Xlnited States than those payable in the same ports by vessels of Great Britain...

...Commerce...

...There is a distinction between commerce and trade...

...The justice of our position is recognized by that portion of the English public that is not blinded by prejudice and cupidity...

...Notwithstanding this provision as to equality in the treatment of ships, Great Britain for upward of forty years after the adoption of the treaty of 1815 openly discriminated in favor of her coastwise shipping...

...The Supreme Court of the United States, in Wilson against Shaw (204 U. S., 33), decided that the sovereignty of the United States over this tract, known as the Canal Zone, is the same as oven any other part of the United States, and that was the specific concession made by the British Government in its second note of protest...

...that the PRESIDENT WILSON insists that Congress repeal the provision of the Panama Canal act passed August 24, 1912, which exempts our coatwise vessels from the payment of tolls in passing through the canal...

...It is estimated that it will cost the United States not less than $5,000,000 annually for the maintenance and operation of the canal, and upward of $10,000,000 annually for its military defense, which, together with $12,000,000 annual interest upon the original investment, will make an annual charge of $27,000,000...

...In that note, after pointing out objections to the exemption of all American vessels, the British Government stated: If the trade should be so regulated as to make it certain that only bona fide coastwise traffic, which is reserved for the United States vessels, would be benefited by this exemption, it may be that no objection could be taken...

...It is urged on behalf of Great Britain that under its terms vessels of all nations, including American "vessels of commerce and of war," are to be treated alike with respect to toll charges...

...It follows, therefore, that the criticism of Congress for exempting coastwise vessels is not well founded, and that the law as enacted is supported by reason and precedent...

...The protest of the British Government and the concession that the exemption of coastwise trade would be unobjectionable largely influenced the Senate in rejecting the amendment proposed by the Senate committee and confining the exemption to the coastwise trade as provided in the House bill...

...The treaty speaks of "vessels of commerce and of war...

...There can be no discrimination where there is no competition...

...And for the reasons indicated the treaty excludes vessels engaged in the eoastwise or domestic trade...

...Unaided and alone, the United States built the canal through this zone and thus connected the two oceans...

...A "vessel of commerce" is therefore a vessel engaged in international trade...

...which will be borne alone by the taxpayers of this country...

...It alluded to the possible difficulty of confining such vessels to strietlj' coastwise trade, but it distinctly recognized the principle for which the American Government contended, and this concession has never been withdrawn by the British Government...

...the latter to mutual dealings at home...

...On this page is printed an extract from Senator O'GORMAN'S memorable address, showing that coastwise vessels do not come within the contemplation of the treaty...

...The) Senate Committee on Interoceanic Canals amended the bill so as to extend the exemption to American vessels engaged in over-seas trade...

...The contention that coastwise vessels do not fall within the contemplation of treaty obligations finds further support in the British note of July 8, 1912, which contains the first objection made by Great Britain and which seems to have been induced by the fear that all American vessels, including those engaged in foreign trade, were to be exempt from the payment of tolls in the canal...

...fillips in tlie coastwise trade would be confined strictly to the coastwise trade and therefore come within the recognition contained in the British note of July 8, 1912...

...As foreign vessels are not permitted to compete with American vessels in this trade, it can not be claimed that the exemption of coastwise traffic works a discrimination against foreign ships...

...In the prosecution of this vast undertaking the United States has expended over $400,000,000...

...It is territory of the United States, and constitutes part of our coast line...

...and invoked the treaty of 1815 which provided on behalf of the United States that "no higher or other duties or charges shall be imposed in any ports of the United States on British vessels than those payable in the same ports by vessels...

...It will he remembere d^hat in 1903 the Republic of Panama ceded to the United States in perpetuity a tract of territory 10 miles wide extending for 40 miles from the Atlantic to the Pacific Ocean...

...On May 7, 1914, Senator O'GORMAN of New York (Democrat) made a strong and commanding speech in the United States Senate, answering the claims of those who support the President's position...

...Having conceded that objection does not lie against the coastwise trade exemption, it is difficidt to find a reason for the continued agitation of the subject or for the unfounded assertion so frequently made that the exemption constitutes a violation of the treaty...

...It is part of our country...

...of the United States...

...Its construction by American enterprise on American soil at the expense of the American people is the greatest engineering achievement of this or any other age...

...American vessels engaged in foreign trade are required to pay the same tolls that are paid by foreign vessels...

...The two classes of vessels referred to would necessarily exclude vessels that are neither vessels of commerce nor vessels of war...

...I SHALL NOT at this time attempt to trace the history of the numerous efforts made from time to time during the past century to construct an interoceanic canal...

...This principle is not only sanctioned by the usages of Great Britain and the United States, but has been distinctly recognized by the Supreme Court of the United States...

...In our legislation two years ago Congress provided .that the tolls should not exceed $1.25 per ton, with lower rates for ships in ballast, and it has been estimated that for some years 10,000,000 tons will annually pass through the canal at an average of $1 a ton, or $10,000,000 annually...

...Moreover, the phrase "vessels of commerce" is not applicable, for another reason, to vessels that ply between domestic ports...

...QRE'AT BRITAIN'S uniform practice under the treaty of 1815 and her acquiescence in the interpretation placed itpon that treaty by the Supreme Court of the United States establish her understanding as well as ours, that when the words "vessels of commerce and of war" were used in the latter treaty they were not intended to embrace vessels engaged in coastwise trade...

...He said, "I ask this of you in support of the foreign policy of the Administration...

...Representations are made that the exemption violates a clause in the Hay-Pauncefote treaty with England...

...In the legislation referred to Congress did not discriminate between American and foreign vessels engaged in over-sea,s trade...

...Under international law the word "vessels" when used in a treaty, unless the contrary meaning is clearly apparent, refers only to vessels engaged in international or over-seas trade...

...There is a manifest distinction between vessels of commerce and "coastwise trade...

...Congress, however, did provide that American COASTWISE vessels shall be exempt from the payment of tolls...

...In that case, the owner of a British vessel entering the port of Galveston protested against the payment of pilotage, charges on the ground that American coastwise vessels being exempt from such charges, British vessels should also be exempt...

...The former relates to our dealings with foreign nations, comities, etc...

...Next week will be printed further portions of .this speech, disposing of the "treaty violation" plea and discussing the questions of economic policy and political good faith that are involved.—EDITOR'S NOTE...

...In the Encyclopedia Britannica and the International Encyclopedia commerce is denned as...

...Great Britain asks for the repeal...

...Chamberlain", the Commissioner of Navigation, who said, in substance, that there would be no difficulty in so administering the law...