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The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, December 10, 1912, Image 10

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JOHN BULL ASKS
EQUAL RIGHTS IN
PANAMA CANAL
England Sends Formal
Protest Against Exempt
ing Coastwise Ships
From Tolls
FIGHT IS CERTAIN ON
CANADA'S RAIL BOATS
Trust Owned Vessels' Ban
Applies Only to American
Lines, Note Holds
innllnnH From Page 1
from the canal British ships owned by
Canadian railroads or -whose owners
may be guilty of -violating: the Sherman
anti-trust act. He holds that this sec
tion of the act can not apply to British
shipping, but only to United States
He indicates that underlying the ob
jection to the exemption from toll of
American coastwise ships is an appre
hensjoa that in the future the principle
might be extended to cover American
ships in the foreign trade. •
Otherwise the note is devoted almost
entirely to an effort to demonstrate
that any Bttch exemption of American
shipping as is proposed is in direct
conflict with The terrn3 of the Hay-
Pauncefote treaty and that Presiaent
Taft was clearly wrong when lie took
the contrary view.
The British note might be summed
up as a definition of the differences be
*.ween the two governments regarding
the construction of the Hay-Paunee
fote treaty, winding up with a pro
posal that the issues be settled by ar
bitration if they can not be adjusted
by*mutual agreement, for which a way
remains open.
Secretary Knox listened attentively
to the reading of the note and prom
ised to take the matter under consid
eration, which he felt would require
tome time. It has been strongly inti
mated in official circles that it was the
president's intention to settle this im
portant question before closing his ad
ministration, either by recommending
that the senate agree to submit to ar
bitration, or preferably by the more
direct means of an agreement between
'he two nations.
Sir Edward begins his note with thfc
statement that the president does not
fully appreciate the British point of
view and has misunderstood the note
r>f July S. lie says the British gov
ernment does not seek to prevent the
United States from granting subsidies
to its own shipping passing through
the canal, nor does it seek to deprive
the United States of any liberty which
is open either to themselves or any
other nation to encourage its own
shipping or own commerce by subsidies.
The purpose of the United States in
negotiating the Hay-Pauneefote treaty
was t' - * recover freedom of action
and obtain the right which they had
F'l-rendpred In the Clayton-Bulwer
treaty to construct the canal them
eelWE But this complete liberty of
nation was to be limited by the main
tenance of the complete principle of
er ( ual treatment for both "English and
United States ships.
The word "neutralization" m the
preamble of the JTay-Pauncefote treaty-
Is not confined to belligerent opera
tions, but refers to the system of equal
right for which article 8 provides. Joijit
protection and equal treatment are the
only matters alluded to, to which that
neutralization must refer.
"It certainly was not the Intention
of the United States government," says
Sir Edward, "that any responsibility
for the protection of the canal should
attaoii to them in the future. Neutral
ization, therefore, must refer to the sys
tem of equal rights."
BOIWDARY DISPUTE CITED
The note declares that the situation
rvated by the substitution of the Hay-
Pmincffote treaty for the Olayton-
Bulwer treaty was Identical with that
resulting from the boundary waters
treaty of 1909 between Great Britain
and the United States, which, in brief,
provided that the boundary waters
.should be free and open to Commerce
'applying equally and without discrim
ination to the inhabitants, ships, ves
sels and boats of both countries
• • • but all such rules and regu
lations, all tolls charged shall apply
alike to the subjects or citizens of the
high contracting parties and they shall
b< placed on terma of equality in the
u.-e thereof."
It is alao lUMtrtod that a similar,
though more restricted provision ap
peared in the treaty of Washington,
and it is recalled "how strenuously the
United States protested, as a viola
tion of equal rights, against the sye
t«-m which Canada had introduced of a
rebate of a larg* portion of the tolls
of certain freights on the Welland
canal, and how. in the face of that pro
it M, the system was abandoned."
Referring to the third article of the
£I!ay-Pauncefote treaty, the note points
out that the Suez canal rules which
the treaty adopts for the Panama canal,
is that the waterVay shall be free and
open to the vessels of commerce and
war ot all nations observing the rules
on terms of entire equality, so that
there shall be no discrimination against
any such nation.
It Is said that the president's state
ment of the case 5s wholly at variance
•with the real provisions when he treats
the words "all nations" as excluding
' • r"nited States, because it had con
structed the canal on its own terri
tory and thereby acquired an absolute
right of ownership, including the right
to allow its own commerce the use of
the canal upon such terms as it caw fit.
"They (the British government) con
pi'ler." &ays Sir Edward, "that by
the Clayton-Bulwer treaty the United
States had surrendered the right to
construct the canal, and that by the
Hay-Pauncefote treaty they recognized
that right on the footing that the
ranal should be open to British and
I'nited States vessels on terms of equal
treatment. • • • If the rules set
the Hay-Pauncefote treaty se
cure to Great Britain no moro than
most favored nation treatment, the
value of' the consideration given for
superseding the Clayton-Bulwer treaty
is not apparent to his majesty's gov
ernment. Nor Is It easy to see in
what way the principle of article VIII
of the Clayton-Bulwer treaty, which
provides for equal treatment of Brit
ish and United States ships, ha
maintained."
The argument advanced in the United
States senate that the words "all na
tions" can not Include the United States,
which would, otherwise, be prevented
from using its own territory for re
victualing its warships or landing
troops, is briefly dismissed by the state
ment that it is completely overturned
by a reading of the Hay-Pauncefote
treaty In connection with the Suez
canal conventions.
As the United States did not own the
canal zone when the Hay-Pauncefote
treaty was made it did not Include the
Suez canal rules, which recognized the
I'M THE GUY
Copyright, 1912, by R. L. OoluOtrg.
right, of Turkey, the local sovereign
and of KgypW to take such measures as
might be necessary for the defense of
her possessions.
Sir Edward continues:
"Now that the United States has be
come the practical sovereign of the
canal his majesty's government may not
question its title to exercise belligerent
rights for its protection."
"COASTERS ACT IJVFAIR"
The next point made is that the ex
emption of American coastwise ship
ping from tolls would violate the sec
tion that the tolls should "be just and
equitable." Unless the whole volume
of shipping passing through the canal
is taken into account there are no
means of determining whether the tolls
charged upon any particular vessel rep
resents its fair proportion of the cur
rent expenditure properly chargeable
against the canal. There is no guar
antee that the vessels upon which tolls
are being levied are not being made to
bear more than their fair share of the
upkeep. Therefore the Brttlsh govern
ment is entitled to the demand on be
half of British shipping that all ves
sels passing through the canal, what
ever their flag or character, shall be
taken into account in fixing the amount
of the tolls."
Regarding the president's contention
that the effect of the British claim
would be to prevent the United States
from aiding its own commerce in a way
that all nations may do, it is said that
this is not true.
Equal treatment as specified in the
treaty is all that the British govern
ment claims. But it does not follow
that the United States may not be
barred by the treaty from granting a
subsidy to certain shipping in a par
ticular way if the effect would be to
impose upon British or other foreign
shipping an unfair share of the bur
den of the upkeep of the canal or to
create a discrimination or prejudice
British shipping rights*
Therefore it is held that the exemp
tion of the American coastwise ship
ping, as well as of Panama shipping,
clearly conflicts with the treaty guar
antees of equal treatment for British
and American ships and that interests
of foreign nations would thereby be
seriously injured In two respects.
CHEAPER TO RELOAD TO COASTER
First, in placing the entire cost of the
building of the canal upon foreign yes.
QUAKE RECORDS POINT
TO MEXICAN DISASTER
Santa Clara University Ma
chine Indicates Earth
Shock Far to South
SAX JOSE, Dec 9.—A record of a
distant earthquake was recorded on the
double horizontal seismograph of the
University of Santa Clara shortly after
midnight this morning, beginning at
12:39 o'clock and ending at 1:12:38. The
maximum shock was at 12:55.50. The
quake is believed to have been in
southern Mexico or Central America.
Seattle Feels Quake
SEATTLE, Wash. Dec. 9.— A strong
earthquake chock, 2,200 miles south of
Seattle, was recorded on the seismo
graph of the University of Washington
from 12:40 to 1:30 this morning. The
maximum Tibration was at 12:60, the
most violent shock at 1:02.
Mexican Coast Quake
TUCSON", Ariz., Pec. 9.—Severe earth
shocks, probably occurring on the west
coast of Mexico, were recorded at 2
o'clock this morning by the seismo
graph at the United States magnetic
observatory here- The tremors con
tinued with intensity for several min
utes.
Washington ■ Records Quake
WASHINGTON, Dec. 9.—An earth
quake shock, lasting 23 minutes and
apparently 1,800 miles from Washing
ton In a northwesterly direction, was
recorded on the seismograph at George
town university between 3:44 and 4:07
o'clock this morning. The tremors
were of considerable sererity. It is
thought that eruptions of the Alaskan
volcanoes may have broken out again.
THREATENS STOCKYARDS
Interstate Commerce Commission Seek*
to Restrict Chicago Buetness
WASHINGTON, Dec. 9.—On the theory
that Chicago stockyard business was
interstate commerce, the interstate com.
j meree commission began an action in
the commerce court to enjoin the Union
Stockyard*; and Transit company, the
Chicago Junction Railway company,
which operates the Transit company,
and the Chicago Junction Railways and
Union Stockyards company, which holds
the stock of the other two companies,
from engaging In interstate commerce
until they had filed tariffs with the
commission. It also asked to have the
j contract with the firms of packers can
| celed.
THE SAN FRANCISCO CALL. TUESDAY, DECEMBER 10, 1912.
- - ____-- . _. — ; : t
sels; and, second, in placing the Ameri
can coastwise trade in a preferential
position as regards other shipping.
Thus it might be that a cargo in
tended for a United States port beyond
the canal in either direction shipped on
a foreign vessel could be sent to Its
destination more cheaply by being
landed at a United States port before
reaching the canal and thence for
warded as coastwise trade.
American vessels also may combine
foreign commerce with coastwise trade,
thereby entering into direct competi- [
tion with foreign vessels while they re
tained rights of free passage
through the canal. These results would
fall more severely on British shipping
than on any other.
The British government does not
read the section of the Panama canal
act prohibiting owned or trust owned
ships from using the ."anal as apply
ing to or affecting British ships, but
it said that if this view is mistaken
"they must reserve their right to ex
amine the matter further and to raise
such contentions as may seem justi
fied."
PROTEST 01 RELUCTAXfK
In conclusion Sir lOdward reiterates
his government's assertion that pro
visions of the canal a«-t as to tolls
conflict with British treaty rights and
adds:
"But they recognize that many per
sons of note in the United States,
whose opinions are entitled to great
weight, hold that the provisions of the
act do not infringe the obligations by
which the United States is bound, ami
under tlr*Kf circumstanceg they desire
to state their perfect readiness to sub
mit the question to arbitration if the
government of the United States would
prefer to take this course. A reference
to arbitration would he rendered un
necessary If the government of the
United States should be prepared to
take such steps as would remove the
objections to the act which his majes
ty's? government has stated."
Finally, Sir Edward declares it is
with great reiuctfcnce that these ob
jections have been raised, that they had
been confined to the narrowest possible
limits, had recognized in the fulled
manner the right of the United States
to control the canal and that the Brit
ish government'looked with confidence
to the United? States not to impair ihe
safeguards granted to British shipping
by treaty.
CHICAGO IS SHAKEN;
ZIONITES ARE ALARMED
Freak Explosion Injures
Several Persons in Suburbs
and Causes Dismay
Special Dispatch to' The Call
CHrCAGO, Dec. !).—A freak explo
sion in the powder house at the stone
quarry of the A. C. O'Txiughlin com
pany in Bellwood Mattered windows
and shook buildings for a radius of
12 miles today. Several persons were
seriously hurt and six buildings be
longing to the quarry company were
destroyed.
Policy headquarter* were flooded
with telephone calls. A man in Zion
City wanted to know over the tele
phone if the world had come to an
end.
In Rogers Park in the north side of
the city a man thought his furnace
had exploded and he ran into the cel
lar. An Austrian woman was thrown
to the floor from a chair. A man tele
phoned from Englewood that a two
story building in which he lived, was
rocking like a cradle.
Following the closing out of a
famous Eastern piano factory,
we have secured for immediate
sale 22 superb pianos—highest
grade actions, double veneered
inside and out, every feature the
very finest. Guaranteed ten
years. These pianos have al
ways sold for $450—they're
worth every cent of it. While
this lot lasts we'll sell them for
$196 each,' but yop must come
quick. Eilers Music House,
975 Market street. Oakland
store, 1448 San Pablo avenue.
AUSTRIAN BONDS TAKEN
BY STANDARD OIL BfINK
Kuhn, Loeb & Co. Join With
National City of New York
in $25,000,000 War Loan
co n « toned From Pagf 1
nia and its truculent attitude generally
toward Servla is taken here to Indicate
that Vienna does not intend to consent
to any t<>rms which do not give Austria
all It wants. Hence in best Informed
circles there is not a. very, optimistic
feeling in regard to the peace outlook.
No explanation is forthcoming of the
i sudden resignution of the*Austro-Hun
garian minister of war. General Auffen
berg, and the chief of the general staff.'
(Genera! Schemua. They have said their
action was due Ho personal reasons, but
coming at this time It can not be doubt
jed that it will have a wide significance.
It had been expected that In event of
war (Jeneral yon Hoetzendorff would be
appointed chief of 6taff. and hie ap
pointment now to succeed General
Bchemua, coupled with the news of the
renewal of the dreibund and that Aus
tria and Hungary have negotiated tem
porary loans of $50,000,000, can not but
have a disquieting effect on the inter
national situation.
It is supposed that Austria wishes to
exert a strong influence over the com
ing conference proceedings in London
and especially to prevent the entry of
Turkey Into the Balkan federation.
The Austrian war party is inflamed
against Russia, in the belief that the
defiant Russian attitude Is due to the
Franco-Russian alliance, and some Aus
trian newspapers are urging that un
less Russia ceases mobilizing, the pow
ers comprising the triple alliance should
fall upon France and crush her before
Russia is able to intervene.
However the crisis may end, the war
fever is having a disastrous effect on
Austro-Hungarian trade. A complete
financial stagnation prevails through
out Gallcia, where the various banks
recently have paid out more than $40,
--000,000 to nervous depositors, without
stemming the run.
A MERICAN BANKERS
H TAKE VIENNA LOAN
VIENNA, Dec. 9.—lmportant changes
have taken place in the Austro-
Ilungarlan war department. General
Aiiffenberpr. the minister of war, re
signed today. General Krobatin, under
secretary in the war office, has been
appointed his successor.
, General Scheau, chief of the general
staff, who recently paid a significant
visit to Berlin and conferred with Count
Yon Moltke. chief of the general stuff
of the German army, has resigned. Tie
hns been succeeded by General Yon
Hoetzendorf, who held- the same post
several years ago.
The Austrian, governnppnt has nego
tiated with a syndicate, headed by the
Austrian postal savings bank, and in
cluding Kuhn, Loeb & Co. and the Na
tional City bank of New York, for an
Issue of 4 1-2 treasury bonds to the
amount of $25,000,000, which will be
taken at 97, redeemable at par In IS
months and two years.
RUMANIA PREPARES
TO TAKE UP RIFLE
P>T CHARKST, Rumania, Dec. 9.—King
Charles of Rumania in his speech from
the throne at the assembly of the Ru
manian parliament today asked the leg
islators to give the Rumanian govern
ment the support necessary for the ful
fillment of the hopes of the nation in
the forthcoming changes brought about
by the Ralkan war. He significantly
remarked that the country's confidence
in the Rumanian army fully was jus
tified, and the troops would be found
ready to fulfill their mission.
DAMAGE SUITS SETTLED
Pacific Gen and Electric Company Par*
Damage* for Death
Special Dispatch to The Cell '
SAN JOSE, Dec. 9. —Bringing to an
abrupt one pending suit
for damages' and forestalling another,
the Pacific Gas and Electric company
compromised today with Mrs. Judith
C Hilton, whose husband, Jesse W.
Hilton, city foreman of construction,
met a tragic death last February while
'•trouble shooting" on an arc circuit.
Mrs. Hilton brought suit a month ago
in behalf of her children, asking $20,
--000 damages and was preparing to file
a second in which she would appear
as the plaintiff. The company agreed
to pay the children $2,500 and Mrs.
Hilton $5,000.
YES! YES! YES!
Delicious, strictly pure Candies are
known as Pig & Whistle, 130 Post st.
—Advt.
MAN WANTS JAXO Per.
9.—Lonio Michael Jgkobaaiek has
the superior court to cb&ngc his name to
Busirk.
KEEP CITIZENS HOME JULY FOURTH
Celebration Will Do It; Also Draw Crowd
San Francisco, Dec 8.
Editor Call: Your many articles on "Boosting" are meeting? with
orr.eat favor from all quarters and esperially from the merchants. We
have a suggestion to offer in the way of a P'ourth of July celebration
We have been informed by a railway official that in the vicinity of
200,000 of our citizens left San Francisco during the fourth, fifth and
sixth of July, this year. The official also advised us that very few from
the interior came to San Francisco for the reason that there was no
celebration here. Why not give San Francisco an opportunity to keep
our own population at home, as well as bring in a large number from
the interior next year, July 4, 5 and 6, 1913.
Here is our suggestion, and each section, by its improvement club or
association, should work up its own entertainment:
July 4, morning (down town) —Military parade from Presidio.
July 4, afternoon (down town) —Fire department and police parade.
July 4, North Beach—Free swimming race, boat and yacht races.
July 4, Stadium—Free football game.
July 4, Ingleside—Free horse, auto or motor races.
July 4, Mission—Free boxing contest of four round goes.
July 4, Presidi«-»-Free aeroplane exhibitions.
July 4. Western Addition—Free running races and Olympic games.
July 4, South San Francisco-—Free balloon ascensions.
You will observe that we have suggested that all the exhibitions
should be FREE to the publtc. This in itself would be a great induce
ment and, In our opinion, if well advertised through the daily press, our
citizens will find eomethkig to interest them at .home. It should bring
into the, city thousands of visitors from the Interior. The cost to each
section could not be Very much, and we think it worth the effort. We
need more visitors from the country and we think our plan would be
the means of getting: them to the city and it would be an easy matter
to bring thousands of dollars to this city Instead of allowing it to go
elsewhere. I* AND M. ALEXANDER.
UTILITY CORPORATIONS
ARE IN GREAT MERGER
California Railroad and
Power Company Will
Take Over U. R.
SpecUl Dispatch to Tbe Call
NEW YORK. Dec. 9.—The United
Railways Investment company has
about completed plans for combining
its California railroads with the power
companies supplying- such railroads
with power, including , in the combina
tion of other companies tributary
thereto. It is submitting these plans
to its stockholders for approval by
which the California Railroad and
Power company will be organized to
accomplish the result.
This company, either through dlrf-t
ownership or through Its subsidiary
companles. will own all the outstand
ing capital stock of the United Rail
roads of San Francisco,.which has ap
proximately 80,000 developed horse
power; also all the stocks of other
smaller companies engaged in the
power, lighting, water and gras busi
ness of California.
Under these plans It Is provided that
the United Railways Investment com
pany shall receive $6,874,000 of 7 per
cent preferred stock and $40,000,000 of
common stock of the California Rail
way ami Power company, being all the
preferred and common stocks presently
to be issued by the California company.
It is proposed also that the California
company shall authorize an issue of
prior preference 7 per cent cumulative
stock, of which $3,000,000 presently will
be issued on contract, for the sale has
been made with K. H. Rollins & Sons.
The proceeds of this stock will be used
for the purchase of $2,000,000 par value
of notes of the United Railways of San
Francisco and to complete the payment
of the purchase, price of the stocks of
the Coast Valley Gas and Electric com
pany.
CLEARING HOUSE SYSTEM
IS UNDER INVESTIGATION
Baltimore Capitalist Testifies lit Money
Trust Inquiry that froverunent
Should Not Control
WASHINGTON, Dec. 9.—A general de- I
fense of the clearing house system of j
banking and a decided stand against '
government regulation of clearing ;
houses were made today by Waldo New- j
comer, manager of the Baltimore clear- j
ing house, before the house money j
trust investigating committee.
The committee took up the clearing
house situation in Baltimore. Repre- i
sentatives of two banks which had been j
refused conditional membership in the i
association appeared.
Manager Newcomer explained that the j
WARNING
TO VOTERS!
Do not be deceived. Take the opinion of those who place human
rights above corporation greed and vote NO on Amendment No. 34, thus
safeguarding the interests of Municipal Ownership.
As an example of what will happen in future negotiations for the
purchase of public utilities by the city as proposed by Amendment No.
34, we need only review our city's attempt to negotiate the purchase of
Spring Valley. Years have been wasted and Spring Valley is still
strongly entrenched with price going up.
The city will add the Union Street Railway to its municipal system
next year if you vote NO on Amendment No. 34. If you do otherwise,
a re-settlement franchise will be granted and public ownership defeated.
Public ownership of utilities will help reduce taxes tbrough earnings
and insure good service.
Vote NO on Amendment No. 34.
PUBLIC OWNERSHIP ASSOCIATION,
By'G W. EASTIN, President,
"**W RUDOLPH SPRECKELS.
banks were not admitted because, as
conditional members, they would not be
bound by the rules of the association as
to out of town check exchange charges
and other rates, and would be In a posi
tion to compete at an advantage with
the other members of the association
bound by the rules.
Reduced
Round Trip Rates
for
Christmas and
New Year's
Holidays
From
San Francisco
To
Los Angeles . . $18.70
Santa Barbara . . 14.55
San Jose .... 1.70
Sacramento . . • 3.35
Marysville . . . . 5.00
Willows .... 6.10 '
Stockton .... 3.15
Fresno 7.70
Bakersfield ... 11.90
On same reduced basis between all stations in California
Christmas Sale Dates: Dec. 21-25. Return lAm\t. Jan. 2.
New Year's Sale Dates: Dec. 28-31. Return L-imit. Jan. 3.
where one-way fare is $10 or more.
Southern Pacific
SAN FRANCIsrn: Flood Building. P«lee«* Hntrt. F*rrr Stetion. Phone Ke*rny tt#6.
Third and Townnend Streets Station. Phone Kearny I*o.
OAKLAND: Thirteenth and Broadway. T'hone pakland 162.
Sixteenth Street Station. Phone Oakland 1458.
ERIE GAVE ARCHBALD'S
AID $30,500, EXPERT SAYS
Engineer Swears Partner
Got $4,500 Option on
Slack Worth $35,000
WASHINGTON. Dec. 9.—James H.
Rlttenhouse of Scranton, Pa-, an expert
mining engineer who surveyed the
Katydid slack bank of Scranton under
direction of Wrisley Brown of the de
partment of justice., testified today la
the impeachment trial of Judge Ardh
bald of the commerce court that the
Erie railroad could have gotten $35,000
for the coal out of the refuse Instead
of the $4,500 for which they agreed to
give an option to E. J. Williams, busi
ness associate of Judge Archbald.
The testimony of the mining engineer
was introduced by the house managers
in an effort to show that through Judge
Archbalds influence Williams had ob
tained the option at $4,500 for tlje Erie's
share of the dump, when the real value
of the property to the railroad was
much greater.
The positive statement that he had
been offered an option to purchase an
interest in the Katydid slack dump by
Williams in the office of Judge Arch
bald at Scranton, several days after
Judge Archbald had infor-aed him that
Williams had no authority to sell, was
made by Thomas H. Jones of Scranton.
The witness said Williams had offered
to sell his Interest in the dump for
$25,000 and accompanied him to the
office of Judge Archbald.

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