William Howard Taft and the Panama Canal Tolls Question

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William Howard Taft (1857-1930). Letter 1912 July 27, Washington (D.C.) to Henry Drinker, Bethlehem, Pennsylvania

Panama Canal Tolls Question refers to a dispute between the United States and Great Britain regarding the charges for use of the Panama Canal based on the U.S. Panama Canal Act of 1912. Great Britain claimed that exempting U.S. ships from paying tolls in the Panama Canal was unfair and a violation of international treaties. Lehigh University President Henry S. Drinker led a conversation among the United States university presidents regarding whether building and owning the Canal should give the United States privilege to exempt its ships for not paying tolls. Several leading American university presidents replied to Drinker privately to express their opinions on the issue.

In this letter, Taft responds to Drinker's letter regarding the implementation of tolls for ships using the Panama Canal. Taft explains that “owning the canal and paying for it as we do, we have the right and power, if we choose, to discriminate in favor of our own ships.” He states that he would rather begin by charging tolls, experimenting with rates, and then reducing them if necessary. Henry Drinker was President of Lehigh University from 1905-1920. A lawyer and engineer, he was one of the founders of the American Institute of Mining & Metallurgical Engineers.

 

This letter is available on the digital library project I Remain.