The Washington times., 1903-08-23
Secretary RootIs MakingDe-
termined Efforts to Have
Efficient Transportation
Service Instituted There.
PROVINCIAL GOVERNMENT
TO GUARANTEE INTEREST
Aid of Powerful Financial
Interests in Wall Street
Has Been Invoked to
Handle the Bonds.

New York date line the Press" this
morning prints the following:
Among other paragraphs printed upon
one of the slips furnished by financial
news agency to subscribers there ap-
peared yesterday afternoon one stating
that Secretary Root was considering
with some favor the proposition that an
efficient and therefore considerable rail
way system be constructed in the Philip
pines. and that the Secretary is OF the
opinion that the Government should
guarantee either interest or revenue suf-
heiently TO make it possible TO finance
the bonds issued to pay for the construc-
ton
This statement is approximately cor
rect. 1t. however, conceals much more
than 1t gives. for instead of a tentative
or perfunctory interest in this proposi-
tion. Secretary Root looks upon it as
one of the utmost consequence. and be-
lieves that IL may be well supported by
the Administration in view Of the polit-
ical, the administrative, we'll as the
commercial prosperity which it will be
sure TO stimulate and maintain.
Some time last winter. Secretary Root
ference with him at Washington, an in
vitation that was al the earliest possi-
BILE moment accepttl. Secretary Root
then said to Sir William that his sue
cess IN the development of a sufficient
railway system for the island of Cuba
and the methods that we have adopted
10 bring ultimate prosperity both 10 that
railroad and TO the people of Cuba had
appealed very strongly not only to imam
ciers. but also TO members of the Ad-
ministration.
The railroad is completed. but some
time must pass before there can begin
to be received revenue sufficient to meet
the obligations of the railway corpora
tion and to provide fair dividend upon
the investment. The same methods were
adopted, far as the conditions were
similar. which were characteristic Of the
construction OF the Canadian Pacific by
Sir William and the opening up OF the
adjacent country to agriculture.
So. toe, when our own Western rail-
roads were built. many OF them preceded
agricultural development The owners
were compelled TO wait until the land
was titled and began TO be productive. In
Cuba Sir William worked out the plan
whereby small tracts of sixty acres ad-
Joining the railroad were so surveyed
that each tract had direct approach to
the nearest railway station, and these
tracts the railroad corporation is selling
TO the Cubans on time and for a small
price. The farmers expect TO cultivate
the sugar cane; the railroad will get the
business OF transporting IL to the near
est mill. ard it is expected that within
a few years many thousand acres hither-
TO uncultivated will be found rcmunerat-
ing the small farmer and furnishing
good traffic for the railroad.
Railway Would Aid Rulers.
Secretary Root had first in mind when
he was considering the exploitation of
railroads in the Philippines the political
or administrative advantages. II there
were sufficient railway communication
between Manila or other large cities,
and the interior it would be possible
quickly TO move troops and, therefore,
10 suppress insurrection. Besides that,
the railroads would unity the population
OF the island just as the construc-
tion Of the Pacific Railroad IN the
early SOS unified the population of the
Atlantic and the Pacific
In the next place, Secretary Root was
convinced that the development OF the
archipelago, especially the two larger
Islands. was dependent upon the open
ing Of the interior TO swift communica
tion with the coast He was certain that
the building Of railroads would speedily
be followed by such prosperity as would
or itself make it possible easily to
maintain peace.
IN his conversation with Sir William
Van Horne. the fact was brought out
that the Federal law does not permit
any one individual or corporation to
obtain title TO more than $500 acres Of
land. For that reason, It was i1npos-
slble TO finance a railway proposition
using lands as the basis for security.
and on the other hand, 1t would be i'm
possible 10 do what Sir William had
done in Cuba II was clearly recog-
nized that there must be some sponsor
ship on the part OF the Government.
and Secretary Root admitted that he
would be IN favor OF a guarantee by the
Government OF a certain percentage Of
interest which would make IL possible
by that that this guarantee should be
entered into by the United States. but
should, in fact, be a contract made by
the Philippine government with any
railroad corporation.
AS result OF this FIRST meeting. II was
agreed that competent engineers should
be sent 70 the Philippines Immediately.
men who were In the employ Of Sir
William Van Horne, and who would be
presumed 70 be in the Philippines in his
interest. But they we're really in the
employ OF the War Department; their
expenses and remuneration. IL being un-
derstood. were to be met from funds
which could be lawfully used for that
purpose. These engineers returned late
In the spring or early summer with ex-