Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 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 to
Continue Contracts. While Pacific
Coast Business Men Are
Demanding a Change.

New York, Oct. S.-Powerful infiu-
ences are being brought TO bear on
President Roosevelt TO induce him to
force the government to release the
grig 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 a 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 its use
would break the grip of the railway
monopoly, which exacted 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 fought the
isthmian canal project because it's oper-
alton might break the freight monopoly
which was so tremendously profitable
to them. When Coils r.. 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 his corpora
ton. The other one-seventieth is
owned by many persons, but the
largest holder of these shares is the
firm of Sullivan & Cromwell, which ne
gotiated the deal for the sale of the
canal.
Since the government became the
owner of the controlling interest in
this road it mas elected Tour of the
isthmian canal commissioners to df-
rectorships in the corporation. Nine
of the old directors remain on the
hnnn6 ThnA nfAnnEo q m fhn GO - ne
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 * spring. In the meantime
the government is supposed to n
the property by suggestion.
To Build More Ships.
Since Their The commission has prac-
tically decided to construct three new
vessels to be used between New York
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.
One faction of the commission is
disposed to go further and stand for
a policy which will give the Panama
railroad corporation very small returns
on the money invested. TIC this the
minority holders of shares object. They
claim that they have q right to their
present large profits. To sustain the
present percentage Of profits it is nec-
essary to continue present contracts.
One OF these contracts is with the
Pacific Mail Steamship The
steamers Of this line touch at import
ant Central American and Mexican
ports and reach San Francisco. It's
contract with the Panama Railroad
company gives il a monopoly of this
business.
cific 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 financial
circles, the Pacific Mail Steamship
company belongs to the Hartman
group of railway wners.
Mr.. Hartman n his friends are try
ing to force the canal commissioners
to continue the contracts with the
Panama Railroad which
gives to the Pacific Mai Steamship
company a monopoly of the Pacific
coast business. together with the cross
continent lines. The business men of
L~AtlfOrHfd are Trying 10 fOfce the canai
commissioners to take advantage of a
clause in the contracts which permits
them to ~abrogate these contracts after
certain notices are given.
Aiding a Monopoly.
If the contracts are kept alive the
government aids the transcontinental
lines to maintain their monopoly. If
the contracts are terminated ii means
that the government will aid in estab-
fishing important competition to the
transcontinental lines. The Pacific
Mail Steamship company is using all
the influence at its command to pre-
vent the canal commissioners from
terminating it's contracts. The COM
pan officials ia that their present
contracts are necessary for them to
maintain their business connections
with the Central American towns along
their route.
The president feels that while u pres
idential is in progress 1t is nc
time to consider so important a mat
ter on its merits.
The question will be brought up at q
meeting of the canal commissioners in
washington. If possible consideration