The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1904-10-14
UNCLE SAM PARTNER
IN BIG MONOPOLY
Railroad Interests Wantto Know
About Panama Railroads
Future.
KEY TO BIG SITUATION
Railroad Interests Want Government ia
Continue Contracts, While Pacific
Coast Business Men Are
Demanding a Change.

New York, Oct. S.-Powertu intiu-
ences are being brought to bear on
President Roosevelt to induce him to
force the government to release the
grip on the transcontinental transport
tation monopoly which it acquired
when it secured control by purchase of
the Panama Railroad company
With a working understanding be-
tween the Northern and Southern
transcontinental railway systems few
capitalists control the land transporta-
ton between the Missouri Valley and
the Pacific coast. This grip on the
cross continent traffic is strengthened
by contracts which the Pacific Mail
Steamship line has with the Panama
Railroad company.
Pressure at Washington.
The conflicting interests now bring
ing pressure to bear al Washington are
the commercial clubs Of San Francisco
and the representatives of the Southern
transcontinental railway lines. For
years the business men of the Pacific
coast have fought for the Panama
canal because they thought it's use
would break the grip of the railway
monoroly. which cxacted tribute on
every pound of freight and on every
passenger passing from the east to the
west and from the west to the east.
For the same number of years the
interested railway owners fought the
isthmian canal project because it's oper-
alton might break the freight monopoly
which was so tremendously profitable
to them. When Coils p. Huntington
of the Southern Pacific died. the organ
lied fight against the canal ceased and
the friends OF this projected waterway
succeeded in passing the necessary
legislation.
The railway interests still have a
slight hold on their monopoly through
the Panama Railroad company, and
they are trying to prevent the govern
ment from interfering with the rem
nant OF their authority. The business
men of the Pacific coast find that they
the not getting the advantages they ex-
pected through the government owner
ship of the Panama Railroad company,
and are trying to strike the transcon-
| tinental monopoly through the 18TH
milan Canal commission.
Governments Holdings in Road.
When the United States purchased
the Isthmian canal from the French
company it secured siXty-nine-sev-
entieths of the stock of this corpora
ton. The other one-seventieth is
owned by many persons, but the
largest holder Of these shares is the
firm of Sullivan G. Cromwell which ne
gotiatsd the deal for the sale of the
canal,
Since the government became the
owner Of the controlling interest in
| this road it mas elected four of the
isthmian canal commissioners TO di-
rrctorships In the corporation. Nine
of the old directors remain on the
board. The officers are the same as
before the purchase. 1t was reported
at the time that the isthmian canal
commissioners would not take full con-
troll until the annual meeting of the
| New York corporation which owns the
road and steamship lines. This is to
be held next spring. In the meantime
the government is supposed to manage
the property by suggestion.
To Build More Ships.
Since then the commission has prac-
tically decided to construct three new
and Panama. This indicates that the
policy of the government as represent
ed by the acts of the commission Is
to remain in the steamship and rail-
way business at least as long as the
canal is under construction.
disposed to go further and stand fol
a policy which will give the Panama
railroad corporation very small returns
on the money invested. To this the
minority holders of shares object. They
claim that they have a right to their
present large profits. To sustain the
present percentage of profits 1t Is nee
essary to continue present contracts.
One of these contracts is with the
Pacific Mail Steamship company. The
steamers of this line touch at import
ant Central American and Mexican
ports and reach San Francisco. Its
contract with the Panama Railroad
| business.
The majority of the shares in the Pa
ciHc Mail Steamship company are
owned by the Southern Pacific Railway
company The control of the Southern
Pacific rests with the Union Pacific
Or, to name the ownership of the rail
way lines, as understood in financia
circles. the Pacific Mail Steamship
company belongs to the Hartman
group of railway owners.
Mr.. Hartman and his friends are try
ing to force the canal commissioner.
to continue the contracts with The
Panama Railroad company. which
gives to the Pacific Mail Steamship
company a monopoly of the Pacific
coast business. together with the cross
continent lines. The business men o
California are trying to force the cana
commissioners to take advantage OF
clause in the contracts which permits
/ them to abrogate these contracts afte
certain notices are given.
Aiding Monopoly.
If the contracts are kept alive thu
1 government aids the transcontinenta
1 lines to maintain their monopoly. I
the contracts are terminated it mean
that the government will aid in estab
fishing important competition to tn
4 transcontinentai lines. The Pacih
Mail Steamship company Is using al
the influence at its command to pre-
4 vent the canal commissioners fror
pany officials say that their presen
Il maintain their business connection
with the Central American towns alon
their route.
The president feels that while pres
idential canvass is in progress it is n
time to consider so important a mat
ter on Its merits.
The question will be brought up at
q meeting of the canal commissioners
Washington. If possible considerable
of the matter will be postponed.
Il Woman Fatally Burned.
Cedar Rapids, Ia, Oct. S.--Mrs. Gel
trude Grant was burned to death b
an explosion OF kerosene, used to stal
Il a fire.
william Rice fell under Roc
Island train at vinton last night an
was probably fatally hurt.
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