PANAMA CANAL.

Press, Volume L, Issue 14987, 6 June 1914, Page 4

PANAMA CANAL.

THE TOLLS CONTROVEESY.

A PROPOSED COMPROMISE.

CESSION OF PART OF ALASKA TO ENGLAND.

(TBOM OT7B OWN CORRESPONDENT.^ j.' SAN FRANCISCO, May 10. The latest suggestion of a method of settling the international controversy on tne question of Panama Canal tolls is in the nature of a political "trade," or exchange. It has. been proposed that 6 fcue v iiued States cede to Great g Britain ad of South-eastern Alaska in p return lor the annulment of the Haye r*auucelote Treaty. With tnat treaty eliminated, there would, of course, be Q uo question but what this country n coulu exempt American shft>s,from the -. payment ot tolls, and could impose - tvuatever" chaiges it pleased upon t foreign vessels using- tue waterway which is about to be opened to the wond's coaiiuerce. The suggested ex- • change has been seriously presented to - Congress by Representative Smith, of 3 tue State of .Viiuyland. in a, formal i motion, in support of which he, has maue one or two speeches. It would 3 not appear, however, to have received 1 enthusiastic' support from Congressi men as a whom, and what newspaper _ comment has been observed is distinctly antagonistic to any surrender of , territory to Great Britain or any other nation. , The land in question is a very valu- . able asset, unquestionably, to what- , ever nation it appertains. It is de- , scribed as "incluuing Ketchikan, Sitka, ' Juneau, aud okagway, with all the rich 1 mines of the Juneau district, including the Tieauwell on Douglas Island, the . second greatest mining plant in tho world, valuable salmon fisheries, tho nobie forests and the deep harbours of the Inland Passage." Juneau is the capital of Alaska, a.id Sitka is the old ,- Russian capital. The ports of. Ketchikan, Wrangell, and Skagway are important, the last-named being the gateway to the Uppor Yukou. The proposed deal opens up the controversy as to the Alaska-Canada boundary, settled iv I_K>l by the Commission sitting in London, of which Lord Alverstone was president, and at which the American representatives were Elihu Root, Henry Cabot Lodge, and Henry Turner. At that time the American contentions were upheld, and the boundary fixed where it now is, and wnere it was when the United-States' purchased Alaska from Ituioia. To Canada the suggested cession of territory would do oi incalculable benaiit, irrespective entirely of the value of the resources of the strip in question, for it would open up North-western Canada an outlet to the Pacific Ocean. Congressman Smith believes Luat American possession of the so-caliod "panhandle strip" is destined "to bo a source of irritation between Canada and the United o_ates in years to come." This is not the first time he has advised that it be ceded to Great Britain. . A year ago he introduced a resolution that the strip be exchanged for one of the islands of the West Indies of the group of the Bermudas, off the Caroline coast. No negotiations were opened up. however, and it is not known whether England would'have desired the "swap." The flurry about Mexican affairs has to some extent forced into the background the controversy over President Wilson's desire to have Congress repeal the law which exempts from the payment of tolls American domestic shipping through tho Canal. Having passed the House of Representatives it is now before the Senate, where it will be debated as exhaustively and as seriously as any large public question of recent years. The Senate Committee on InterOceanic Canals heard testimony: from public men ot supposed expert knowledge on the subject, and.so .great -waa the conflict of opinion in the commit--ee that it reported' the measure back to the Senate without recommendfction either lor or against it. ■'"_ is held in many quarters that even although the United States surrenders the exemption clause, it should in aome way make a ucciaiation that as a maTlerl of right it is legal for it to grant such exemption. Avowedly with tnat object, the committee of the Senate advises that if the Repeal Bill should pass it should • be amenued by inserting the folTowlug somewhat vague provision: "irrovided chat neither the passage of this Act, nor anything therein snail oe held as waiving, impairing, or aftojtmg any treaty or other rights possessed by the Uuited States." The most noteworthy speech co far delivered in tho Senate was by Senator X orris, who urged that President Wilsou invito Great Britain to arbitrate the controversy It was Senator Norivy's idea that a tribunal consisting of tiiree members of the united ailai.es Supreme Court and three Judges ot tho l.ig;icsfc Court in Great Britain, with w,e Pxe_i u ent of Sw.tzerland or a citi-. Zen .of switzrtrland as piesiuent, would piobau,y reach a unanimous decision satisfactory to both nations, it is very ■irt.ierany IK-lieved that the''Senate will <jit!:er pass the Repeal rjiH or compromise. upon a request to the President t<invoke arbitration. The possibility of future unfriendliness between the two nations as an outgrowth of £he dispute is dwelt upon by many uewspape-s. The San Franchco "Chronicle," wl : nm most Pacific Coast papers, is opposed to repeal of the exemption law, says: •'The worst thing nbont the business is that, if it should bo finally decided that we "annot use our own Canal run- j nng through our own territory for our ■ own purposes, the foundation will be ; laid for n srn-pral r- c |j n j, 0 f unfriendliness to Groat Britain, which may have nnexnec+nd and "tn*ovtuuate results on some future occasion."