The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-12-06
RAILROAD HlGHlTES
TO WORK FOR CANAL
POWERFUL INFLUENCES CHANGE
THEIR ATTITUDE TOWARD
The WATERWAY.
Morgan srd His Allied Interests Pro-
pose Now 70 Operate Steamships
in Conjunction With the Trans
Continental Railroads

WASHINGTON. Nov. 2I-Iniuen-
tial opposition 10 the construction 81
an isthmian canal, which for several
years has been instrumental in retsrd-
ing progress on the great enterprise.
has al last been Withdrawn The great
railroad magnates who hitherto have
regarded . waterway between the AZ
lantic and Pacific as endangering their
interests and have thrown all possible
obstacles in the way of its construc-
ton have now so shaded their business
affairs as TO become the most active
advocates Of the canal.
Messrs. Morgan, Hartman, Hill,
Gould. Vanderbilt and other directors
in the affairs of the uranscontinental
lines, mutually agreeing among them
selves upon plans 10 maintain rates
and promote harmony are now branch
ing out with the intention OF ultimately
controlling all transportation facilities
upon the sea as we'll as upon the land.
As steamship owners these railway
magnates no longer fear injurious com
petition by water and from the po-
sition OF opposing the construction OF
the canal they are now urging ii. As
the owners OF steamships they can d.
vide the transportation business most
proiitably. assigning TO the railroads
that which will pay best and to the
steamships the heavy. bulky, long
hauls
Mr. Morgan when he started TO OBJ
tain control of ocean tonnage went %
Europe, not so much to buy few
steamship lines as to look into the
Panama canal project with the object
OF buying 1t if it was found good in
vestment. Conferences with President
Loubet of France and directors OF the
canal company convinced him that the
title could not be readily obtained. and
the report of experts demonstrated the
canal was not a good business propo-
sition at the price set upon it. He
therefore abandoned the idea of work
ing for the construction of an isthmian
canal by the transportation companies
of the country. and with his colleagues
is directing every effort TO facilitate
the construction of canal by the gov
eminent.
These magnates Will line up in oppo-
sition to the passage of the subsidy
/. bill in the form in which it was pre-
scented to Congress last session. While
they would, as owners of steamships,
benefit in a degree from such a meas
ure they would rather forego the sub
sidy than to have it dangling as a
temptation for the construction and OPP
Grafton of rival lines. They do not
want the government to offer any en-
couragement to the shipping interests
that might result in producing compe-
tition.
They want. by controlling the freight
carried upon their railroads, to ami
hilate independent steamship compa-
MES. bankrupt them and force them
out of business. BY controlling rates
upon the ocean as well as upon the
land the great capitalists can produce
satisfactory profits. and are, therefore.
determined TO prevent, if they can,
the government encouraging compe-
rtition. They are not opposed. however,
to a subsidy to steamships in any
form. They are willing that it should
be offered TO steamships engaged in
the commerce with Latin America. At
present the trade between the United
States and the east coast of South
America is conducted by the way of
Europe, and this triangular course they
wish to have abolished.