The British Government expressed the fear that the United States, in remitting tolls on coastwise business, would assess the entire charges of maintenance of the canal upon the vessels of foreign trade and thus cause them to bear an unequal burden. This, the second objection was answered with the statement that, whereas the treaty gives the United States the right to levy charges sufficient to meet the interest of the capital expended and the cost of maintaining and operating the canal, the early years of its operation will be at a loss and, therefore, at a lower rate than Great Britain could ask under the treaty. The third objection was considered insignificant. The British Government, after laying down its objections to the American canal toll law, requested that the matter be submitted to The Hague tribunal for adjudication. The American Government declared that this course would not be just to the United States, since the majority of the court would be composed of men, the interests of whose countries would be identical with those of England in such a controversy. Before leaving office President Taft proposed that the matter should be submitted to the Supreme Court of the United States. The whole question was left in that situation when the change from the Taft to the Wilson administration took place. As to the merits of the controversy, there is no unanimity of opinion on either side of the Atlantic. Some British authorities entirely justify the American position, while some American authorities take the British position. It is probable that the controversy will require years for settlement. Before the canal was open for traffic there was much speculation as to what rate policies the railroads would adopt to meet the situation caused by the competition of the Panama Canal. If the same classes of goods are handled through the canal as across the United States, there will be more than 3,000 different articles on the tariff books of steamship lines using the canal. In his report on the effects of canal tolls on railroad rates, Prof. Emory R. Johnson expressed the opinion that the payment of tolls by ships engaged in coast trade would affect neither the rates of the regular steamship lines nor the charges of the transcontinental railroads. [Illustration: AN ELECTRIC TOWING LOCOMOTIVE IN ACTION] [Illustration: BLOWING UP THE SECOND DIKE SOUTH OF MIRAFLORES LOCKS]