Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-14
A PAN -AMER|CAN LINE
Report of Commissioner
Charles M. Pepper.
PROJECT ENCOURAGED
OBSERVATIONS IN THE CoUN-
TRIES VISITED.
Trade Opportunities That Will Result
From the Accomplishment of the
Proposed Enterprise.

Roosevelt as commissioner to carry out the
recommendations Of the second interna-
tional American conference held in Mexico
two years ago with regard to the Pan-Amer-
lean railway, has submitted his report to
the State Department, by which it will be
transmitted to Congress. The second con-
ference created a permanent committee,
with headquarters in Washington, of which
ex-senator H. G. DAVIS is chairman and
Andrew Carnegie is a member. The other
members are the ambassador from Mexico
and the ministers from Peru and Guatemala.
Commissioner Pepper spent year in visit
ing the various countries, and was aided in
his work by the United States ministers. His
inquiries covered the general subject of
trade opportunities that would result from
railroad building as well as actual railway
construction.
The report says that the general project
Of an intercontinental line which ultimately
will place New York and Buenos Ayres in
thorough railway communication is receiv
ing much encouragement. At the present
time about 500 miles are lacking, and the
estimated cost of construction is placed at
$150,OOO, 600. This IS based on an average of
90 cents gold as the daily wage for labor,
with an efficiency of IS per cent COM
pared with similar labor in the United
States.
Five Specific Causes.
Commissioner Pepper gives five specific
causes which have contributed to advance
the intercontinental project. as well as rail-
way building in general. Some of the de-
velopments have taken place since the be-
ginning of the present year. The encourage
ing causes as specified in the report are:
First-Progress at both ends, as shown in
simultaneous action by Mexico on the north
and the Argentine Republic on the south to
extend their railway HEes SO that one will
reach the border Of Guatemala and the
other will pass the frontier of Bolivia.
Second-The settlement of disputed boun-
diaries and other questions which heretofore
have caused the countries to be Indifferent
to railway intercourse among themselves.
Notable instances of this are the delimita-
ton Of the boundary between Chile and the
Argentine Republic and the treaty ratified
by Brazil and Bolivia in February of this
year for the settlement of the Acre rubber
territory
Third-The law passed by the Chilean con-
gress for the tunnel through the Andes,
which will enable the g-deferred through
railway connection between Buenos Ayres
and Valparaiso TO be made.
Fourth-Legislatfon by several Of the re-
publics with a view to offering greater in
ducements for foreign capital to engage in
railway construction, and especially the law
passed by the Peruvian congress a few
weeks ago which establishes a permanent
railway guaranty fund of 100000 annual
ly out Of the proceeds of the tobacco tax.
Fifth-The definite determination of the
Panama canal question, which is expected
to be beneficial both in the stability which
will result from the influence of the United
States on the isthmus and from the over
flow of private capital into railway enter
prises.
Various Railway Enterprises.
Full accounts are given of the various
railway enterprises in the different coun-
l.
as the inducements to capital in the way of
government guarantees and subsidies and
exemption Of railway material from Gus
toms and internal taxation. Commissioner
Pepper comments on the friendly attitude
toward American investments, the growing
stability of the governments and their abil-
ity to carry out the guarantees.
A special chapter is devoted to markets
and trade Numerous instances are given
Of the ability of the United States to sup
ply South America and Central America
with steel rails. as well as with rolling
stock generally. The report praises the
adaptability of manufactures in the United
States in meeting the special needs of local
conditions and recites the marked prefer
ence shown for locomotives and cars of
American make. An illustration of this is
afforded in statistics from Brazil. Bridge
building material, the report says, can be
sold in South America as profitably as in
Egypt.
status of United States exports to South
America, and the grounds are given for
the belief that these be materially and
permanently increased. In the rivalry of
Great Britain and Germany the report
states that Germany has made Roadway,
but emphasizes the ability of the United
States to compete with Germany. Com
missioner Pepper says there is a reaction
from German cheap goods and the United
States can compete with Germany in sup
plying the better grade for which the de-
mand now exists.
The report will be translated into Spanish
by the bureau of American republics
The Intercontinental Survey.
Commissioner Pepper pays high tribute
to the intercontinental survey which was
made by three corps of engineers from
Guatemala to Bolivia in accordance with
the recommendation of the first Pan-Ameri-
can conference The surveys were finished
In 1898 and the report says that they have
been of very much practical value, having
been utilized in actual railroad construction
in Peru, Guatemala and other countries
In reviewing in detail the republics visit
ed Commissioner Pepper discusses the great
progress in Mexico and the actual railway
work that is still going on. Only 172 miles
are lacking to reach the border of Guate-
mala. Reference also is made to the inter-
oceanic lines from the Gulf of Mexico to
the Pacific. and it is stated that within two
years two through trun'- systems will be
completed President Diaz is praised for the
results which have been had from the rail-
way policy adopted quarter of century
ago Mexico now has 200 miles of rail-
ways, excluding electrical traction and sim
liar tramways, as against 1886 miles in 1873
Commenting on the investments of citizens
of the United States, the report says that
there has been an increase since two years
ago, when the report Of Consul General Bar
low placed the capital of Mexican railways
controlled in this country at 80 per cent Of
the total.
In Central America +.
Regarding the Central American republics,
| the commissioner says that most Of them
have national policies for building inter-
| oceanic lines to bring their Atlantic and
Pacific ports into communication, and these
| will serve as feeders for the Pan-American
route. He states that the demand for sup
| plies which will result from the Panama
| canal construction will encourage railroad
enterprises throughout Central America, and
| he suggests the probability of further ia
| cilities for meeting the needs Of interna-
| tional traffic.
In Guatemala the extension of the Cen
| trail railroad in November, 1903, has left
| only thirty miles open from the capital
| to Ayutla, on the northern border, and
| this section, II Is expected, will be huIt