Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-18
THE PANAMA RAILROAD
Action of the Directors at
Yesterdays Meeting.
CONTROLLING FACTORS
ARE THE 18TH HMIAN CANAL COM
MISSION OFFICIALS.
Road Has Been Paying 33 1-3 Per
Cent Dividends-Rates to
Be Reduced.

The action of the government yesterday
in deciding to double-track the Panama
railroad and construct additional steam
ships for service on the Atlantic and Pa
cific will serve i. is said, to renew and in
crease interest of transportation compa-
MES in the doings of the isthmian canal
commission. According to reports that
reach Washington, the transcontinental
railroads are fully alive to the fact that
big proposition is being presented in the
Panama railroad deal
They are realizing, it is said that case
of government ownership of transporta-
tion facilities is actually organized and
getting ready for increased business, open
to the general public and in active compe-
tition with the transcontinental railroads
That it is government ownership In it's
fullest sense there is no question.
Controlling Factors in Management.
The isthmian canal commission officials
are the controlling factors in the railroad
mana agement, serving without additional
compensation. The stock is owned by the
United States and every move will be made
by and under the authority of the United
States The double tracking of the rail-
road will be paid for out of funds OF the
United States appropriated by Congress
for the construction of the isthn>An canal
and the nag ana great seal u Tic CliitCu
States will cover every action.
At the meeting OF the directors OF the
Panama railroad in New YORK yesterday
President Shonts. who holds his ONCE by
virtue of his position on the isthmian canal
commission, stated that no action had yet
been taken in regard to the establishment
of rates for freight and passenger trafnc
on this new trans-oceanlc line. Ihat is the
subject of greatest interest 10 the 'rah.'-
continental railroad men. They want to
know how much the government proposes 10
cut the existing rate.
The Star pointed out last week the anxi-
ETY. of the railroad men on that subject due
to the knowledge that existing rates were
so eSorbitantly high and the consequent
profits so great 1t has often been charged
that the Panama railroad was working N
conjunction with the overland railroads or
this country, and the reason was, of course,
quite plain.
As the Panama route was so much cheap
er than the all-rail routes across the coun-
try there was no occasion for the Panama
railroad to do more than get all the freight
it could carry without cutting rates and
pocketing the difference in profits.
1t has been stated upon competent au-
thority that the Panama railroad paid as
high as 33 1-3 per cent regular dividends
yearly, with a special and unknown diVi-
dend in addition.
The Present Plan.
The present plan of the government is un-
derStood to be 10 conQuct inc fodo anu 'iie
connecting steamship lines upon the basis
of paying reasonable expenses and small
dividend, say per cent, which Will be In
the nature of sinking fund. OF course, II
this plan is followed, the freight and pas
senger rates will sink far below the charges
of the transcontinental lines.
Politicians beginning to sit up ana
take notice of the experiment in govern
ment ownership. 1t is what Mr.. Bryan has
been advocating and what the Hearst
Dunno wing of the democracy are now
reaching for municipalities and states
The fact that actual demonstration oil
government ownership upon great scale
is beine undertaken by a republican admin
istration is attracting the attention OF the
politicians who are wondering what the
effect NAV be upon the next campaign.