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Withdrawal of Canal Labor
ers Will Mean Dull Times
S of ceas
ed to be engineering ones The
are no relate to
construction. They are now
economical, fiscal and political. Some
of them are far more complicated than
the Cucaracha slide in the Culebra
The American administration of the
canal zone and the operation of the
canal present no serious problems.
These plans were all worked out a
year ago. They will be put in force as
soon as the law passed by congress in
1912 becomes fully effective through
the appointment of a governor of the
zone to supersede the canal commis
sion. The governor, of course, will be
While no promises are made as to
the time when the canal will be open
ed to commerce and cargo vessels will
be passing through it, writes Charles
M. Pepper in the Washington Star, to
one on the ground it is apparent that
this will be much sooner than has been
anticipated. A few weeks will deter
mine the experimental questions in re
gard to the operation of the canal.
Then it should pass under the form of
administration provided by congress.
The operating and administrative
force for the canal will consist of
about 2,500 persons, exclusive of sani
tation and government. It is this re
duction from the huge force of labor
ers and clerical employees to the mini
mum that raises some serious prob
lems directly for the republic of Pana
ma and indirectly for the United
States. While in the beginning the
merchants on the isthmus objected
strenuously to the United States feed
ing and clothing its army of canal em
ployees through the medium of the
army commissary, nevertheless they
VIEW OF PANAMA CITY SHOWING SECTION
OF SEA WAIrti.
recognize that a vast sum of money
coming from them has been put into
circulation every mouth. All business
Less Money Each Month.
Now the larger part of this wage
money is to be withdrawn, not sudden
ly, for the process has been going on
for months, but with certainty. It is
possible to calculate almost mathemat
ically from wage rolls of the canal
commission how large the sum is les
sened month by month. All this means
that dull times, as compared with eight
or nine years of flush times, are likely
to follow the opening of the canal.
The depression may not last long.
There is no reason why it should, but
the transition period is likely to be a
trying one until the volume of com
merce passing through the canal, and
the consequent activity of the ports of
Panama and Colon, causes renewed ac
tivity, although not on the scale of the
last few years. The administration in
power in the republic of Panama will
be held responsible by the "outs" for
the dull times. The government of the
United States also will be censured.
Human nature on the isthmus is about
the same as human nature elsewhere
In this respect.
Some of the American officials would
have the Hay-Varilla treaty of 1904 re
vised so as to make more clear the
rights of the United States on the isth
mus in connection with the canal, leav
ing the government of Panama to de
pend more largely on the development
of the resources outside the canal
sphere. In the future, as in the past,
there is no doubt that Panama will do
about what the United States thinks
is the right thing to do in connection
with the canal, but these American of
ficials would leave nothing to disputed
The Panamans on their part also
talk of a revision of the treaty so as
to define more clearly what they call
Panama's sovereignty within her own
territory. In the various controversies
which have arisen they have not ad
mitted that the language of article 3 Of
Problems No Longer Engi
neering Ones, but Econom
ic, Fiscal and Political.
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the treaty in granting to the United
States the rights, powers and authori
ty which it would possess and exer
cise "if it were sovereign" is an ad
mission of complete sovereignty.
To the American officials the mean
ing of this language is that the Unit
ed States is sovereign in the canal
zone and in the auxiliary lands and
waters mentioned. By the Panamans
the language has been construed as a
limitation of the authority of the Unit
The treaty of 1904 has been inter
preted and given effect in many of its
provisions under what is variously
known as executive order No. 15, or
the Taft agreement This order was
issued by direction of President Roose
velt soon after the treaty became ef
fective in 1904. Mr. Taft was then
secretary of war, and hence his name
was given to the agreement. During
BUINS OP ST. ATJGTTSTIN'S TOWER ON SITE
OF OliD CITS OV PANAMA.
his term of president he approved va
rious modifications or interpretations
of the agreement in the form of sup
Question of Tariff.
At the present time the republic of
Panama is chafing under one provi
sion of the agreement. This relates to
the restrictions on its sovereignty in
making its own tariff laws. Under
the treaty of 1904 the United States
has been the tariff lawmaker for Pana
ma. The customs duties were mainly
of a revenue character, and the rates
were not high, but when Panama
wanted to raise them from 10 to 15
per cent ad valorem the consent of the
United States had to be obtained. It
was given, but not unconditionally,
and the Panama officials were not en
tirely happy over the situation.
Another view of the case was taken
by the majority of the Americans, in
cluding some of the officials who are
identified with the canal construction.
Food supplies and clothing were ad
mitted into the canal zone free since
they were part of the commissary sup
plies, but the duty had to be paid on
cigars and two or three other articles.
The Panama national assembly at
its session last spring passed various
laws whose avowed purpose was to en
courage native industries. Some of
these did not require the sanction of
the United States and are now in
force. Others have not been promul
gated because the United States has
withheld its approval.
The plan of having the United States
continue to regulate the Panama tariff
is questionable. Some classes of com
modities imported from the United
States would have to pay Increased
rates, but it does not appear that
American commerce would suffer or
lose appreciably in volume. The ques
tion is actually one of policy or pos
sibly of expediency.
To Establish National Bank.
With the other measures passed by
the national assembly was a very com
prehensive one which looked to the es
tablishment of a national bank of is
sue. It was drawn up with the pur
pose of securing the establishment of
an American bank on .the isthmus,
and its provisions were submitted to
various financial institutions in New
York, which were understood to look
with favor on the project
After the measure was passed the
New York financiers lost interest The
plan itself has not been given up, but
if carried out it will be by London
banking capital In control and with
American banks satisfied to take a
minority of the capital.
A project more directly related to the
canal is for the establishment of free
ports. This is somewhat vaguely ad
vocated without a definite distinction
between bonded warehouses, with a
slight warehouse transit charge, and
absolutely free ports with no restric
tions on Imports and exports.
The Panama national assembly pass
ed a law for the creation of bonded
warehouses, but the terms are not sat
isfactory to the local banks, which
would be expected to advance funds on
goods in bond. Unless the act is modi*
fled it is not likely to prove effective in
creating bonded warehouses.
The free port project has a broader
basis. It is that Panama could be
made the distributing center for a
large area on the Pacific side, while
Colon would serve for the Caribbean
districts. If it became a free port Co
lon would find itself in competition
with Curacao and St. Thomas for the
West Indian trade, but Panama would
have no competition on the Pacific side.
Free Port Republic.
Should the scheme be attempted it
might be necessary to make the minor
ports free also, so that Pamana would,
in fact, be a free port republic. The
country could find sufficient sources of
revenue to get along without import
duties and could remit the present
small export tax, but such a plan
would be adopted with a great deal of
hesitation, especially since it might
mean the abandonment of the present
policy of encouraging domestic indus
Long years back Panama was a free
port and merchants paid a graded li
cense tax. Those of them who are ad
vocating the free port project say that
such a system would be satisfactory
now and would insure a larger rev
The republic does not seem to be at
all badly off for revenue. Besides the
interest on the $6,000,000 canal pur
chase money deposited in New York,
it is now receiving from the United
States the $250,000 perpetual annual
rental for the canal concession. This
is a very comfortable lump income for a
country which has only 300,000 inhab
itants. But into the question of bond
ed warehouses and free ports again
enter the relations with the United
States and the canal zone. It is the
United States which is building a ter
minal at Balboa, with all that is re
quired for ships and cargoes.
The Porras Administration.
The administration of President Por
ras has an internal improvement pro
gram of its owngood roads, agricul
tural development and railway build
ing. All this is good. Its success is
not dependent upon American control
of the canal zone. It rests with the
Panamans whether this program be
comes more than a paper program.
The United States has had to disap
prove of some railway projects be
cause they were so clearly in strategic
TYPICAI. VILLAGE IN THE INTEEIOK OF
hostility to the canal. Other plans for
railway lines offer no such objections.
The canal commission has a large
quantity of surplus equipment both
for the construction and the operation
of railway lines. If advantage is not
taken of this opportunity for cheap
railway construction the fault will be
that of Panama.
In connection with the possible de
velopment of the agricultural and oth
er resources of the country as a means
of freeing it from a too great de
pendence upon the canal zone the fu
ture of the zone is important. It is be
ing depopulated in accordance with the
act of congress, except for those who
will be engaged in the operation and
administration of the canal. The ca
nal laborers will not be allowed to re
main within the limits. Land titles
are being extinguished and vested in
the United States, which in a short
time will be a monopoly landowner of
some 350 square miles of territory.
Planning For Future.
It is clear that this,plan of depopu
lating the canal zone is desirable at the
present time. A question is raised,
however, whether the zone should be
continued indefinitely as a military
reservation. Some of the officials who
have been engaged in the canal con
struction and administration think that
the United States later should lease the
lands on the zone to American citizens
who would care to engage in tropical
Another view of the depopulation of
the canal zone is the political one.
With the zone as a military reserva
tion irritating questions will not arise,
and it Is to be remembered that in
Panama, as elsewhere in Latin Ameri
ca, there is an anti-American element
which is always looking for a griev
On the isthmus this element Is espe
cially critical of any concessions which
the government may make to the Unit
ed States. This local opposition is vio
lent and unreasonable. Allowance
should be made for It in the efforts of
the present administration to adjust
satisfactorily the various questions
which arise growing out of the some
what anomalous relations of Panama
and the United States.
THE PBIKCETON UKIOy: THUBSDAY, OCTOBER 30, 191&!
GOING GOING NORTH.
7:55 a.mBOOTH Sandstone 8:35 p.m
8:30 a.m Brook Park.... 8:00p.m.
9:10 a.m Mora 7:20 p.m.
9:25 a.m Ogilvie.. 7:05p.m.
9:38 a.m Bock 6:50 p.m.
9:55 a.m Milaoa 6:35 p.m.
10:10 a.m Pease (f) 6:13 p.m.
10:22 a.m.. .Long Siding (f).. 6:03 p.m.
10:27 ft.m Brlckton (f).... 6:00 p.m.
10:42 a.m Princeton 6:55 p.m.
11:02 a.m Zimmerman 5:35 p.m.
11:25 a.m Elk River. 5:12 p.m.
11 56 a.m Anoka 4:46 p.m.
12:52 p.m Minneapolis.... 4:06 p.m.
1:25 p.m St. Paul 3:30 p.m.
(i) Stop on signal.
ST. CLOUD TRAINS.
GOING WBT GOING HAST.
3:39 p. Milaoa 10:00 a.m.
3:37 p. Foreston 9:43a.m.
4=40 p. 8t. Cloud 8:35 a.m.
GOING SOUT I GOING NOBTH
Daily, exceptH Sun. Dally, except Sun.
8:30 a.m Mllaca 2:10p.m.
9:30 p. Princeton l:00p. m.
10:30 p. Elk River... 10:30 a. m.
c3:00p. Anoka 8:00a.m.
Any Information regarding sleeping
oars or connections will be furnished at
any time by
J. W. MOSSOIAN, Agent.
A private Institution which combines all the
advantages of a perfectly equipped hospital
with the quiet and oomfort of a refined and
elegant home. Modern In every respect. No
insane, contagious or other objectionable cases
received. Bates are as low as the most effi
cient treatment and the best trained nursing
H. C. COONEY, M. D.,
PRANCES S. COONEY, Supt.
NELLIE JOHNSON. Head Nurse.
to your wagon or carriage is liable to
occur at any time. The only remedy
is to take your injured vehicle to a re
pair shop, where it will be made "just
as good as new." Wagons, carts and
carriages are repaired with a master
hand at our repair shop, and horse
shoeing and blacksmithing of all kinds
is skillfully done at low prices.
N. M. NELSON
N. W. Main 1663 T. S. Center 2670
GEO. M. RICKETTS
Mutual Life Insurance Co.,
of New York
Room 213, Phoenix Bldg., Minneapolis
Baggage and Express
AVING succeeded Wesley Page
as expressman, I shall continue
to convey packages and trunks to
and from the depot. My charges
for packages will be 10 cents and
for trunks 25 cents. I am also pre
pared to do light hauling about town
Prompt Attention to Phone Calls
Call Hoffman's harness shop from 9
a. m. toB p. m., at other times call
me at Harry Shockley's residence.
You Should Rot
hold a public sale for the purpose of
disposing of your horses, cattle,
machinery, household goods, etc.,
until you see me and get my rates.
T. J. KALIHER
I Farm Lands
First National Bank
of Princeton, Minnesota.
Paid up Capital, $30,000
A General Banking Busi
Loans Made on Approved
Interest Paid on Time De
Foreign and Domestic Ex
S. S. PETTERSON, President.
T. H. CALEY, Vice Pres.
J. F. PETTERSON, Cashier.
M. M. Stroeter will conduct farm auctions either on commission
or by the day.
Princeton State Bank
OM a G*nral
Interest Paid on Time Deposits.
Security State Bank I
JOHN W. GOULDING, President G. A. EATON, Cashier
foMQQMMM**************.^*,*,** HlfHM MI ft Hut
I HcMillan & Stanley I
i Successors to
I 5. RUTHERFORD & CO. I
I I I I 11 11 ,|i i j.
We can sell you at a lower price
than anv other yard. All that
we ask is that you will call and
give us an opportunity to con
vince you. S *Jf
I PRINCETON LUMBER CO. I
J. J. SKAHBN,
Princeton, Minnesota 1
Capital $32,000 Surplus $4,000
We Handle the Oreat Northern Railway Co. Lands 2
|Farm Loans Farm Lands
,t,,t, ,p .g, ,t,j, ,t,
,j ,t, j,,,t,
E If You Arc in Need of a Board oral
Load of Lumber see the 3
Princeton Lumber Co.
GEO. A. COATES, flanager 3
to foot comfort are the easy fitting, smoth-lined shoes
we are offering to men, women and children, and
their superior quality have made them "stepping
stones" to our own popularity. Step in one pair of
these and you'll not only step lively but comfortably,
with a spring and a vim that you never experienced
in any other shoe. You won't regret the price either.
1 1 iJf