Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1905-09-12
owns A RAILROAD
Uncle Sam Inaugurated Govern.
msnt Control by Pana-
ma Purchase.
EXPERIMENT IS SUCCESSFUL
Hnted That Steamship Line Up the
Pacific Coast May Also Be
Secured.

1
| lneditated, probably, a direct test of
the expediency of government owner
| ship of public utilities was inaugurated
| by the purchase of the Panama rail-
| way and its subsidiary steamship line
as collateral adjuncts of the govern
| ments canal enterprise. says Leslie ].
Perry. writing from Panama to the st.
Louis Globe-Democrat. Undeniably
| the railway is economically inseparable
| from the canal in the constructive
, stage. TAis can hardly be held to be
| the case with the New York Colon
| steamship line. Yet the government
pertinaciously clings to the latter, and
| by purchase has recently added to the
| line two large and speedy ships at
cost of $1,35Gc5OO.
1t is only the spectator right here
| on the ground who can fully COM
| prehend the tremendous power the gov
eminent has taken into its hands by
!. this incidental entry into the field of
commerce.
This national ownership of a ridicu
lous little railroad only forty-seven
miles long, remote as it is from the
United States, makes the country in
fact powerful competitor of seven
transcontinental railways. including
the Canadian Pacific, having not less
than $4,000 miles of main track. Their
stocks and bonds are scattered in the
hands of thousands of private Amer
lean citizens. For, ridiculously short
as ii is, the Panama railway, too, Is a
transcontinental line to d degree 1t is
true. as Mr.. Bristow states in his re-
cent report, that the relation it sus-
! tains to commerce is different from
that of any other transportation COM
pany"-that is, with reference merely
TO the construction of the canal by
government Nevertheless ii Is direct
and effective. AS n common carrier,
fixing rates the same as any other COM
pany, Its relations are not different in
any other particular.
The chief object in the purchase of
both tie railway and the steamship
lines was the transportation of the
canal freights, but anybody who fire.
quents the Colon and Panama wharfs
quickly observes that u very large pro-
portion of the ship cargOes and railway
freights are for private account. 1t Is
has made u good thing by taking over
these lines. They both pay "A large
return above the cost of maintenance.
which will be much greater when the
facilities for handling the mass of
freights Offering are increased in ac-
cordance with the liberal plans already
being carried out. The purchase Of the
two steamers above mentioned is sig
nificant of the governments Infections
in this regard as well as probable de-
termination to permanently maintain
it's present single relation tOwaSd our
transcontinental commerce as well as
foreign commerce with the Pacific
coast of South America.
AS for the Panama railway, it is
actually swamped with both passenger
and freight traffic. 1t runs five passen-
ger trains each way daily. Each looks
like an excursion train, such a rush Of
passengers is there, both first and Sec
ond class. The natives and canal en-
plOyees are great tSavelers. 1t Is not
unusual to see d dozen persons stand
ing in the coach aisle
Fare Was x25.
Under the original Panama railroad
company the fare from Aspinwall
(Colon) to Panama was SO, gold. Just
think of paying $50 railroad fare from
Washington to Baltimore or New York
to West Point! De Lesseps reduced
the fare to IS, gold-still enough. In all
conscience, for forty-seven mile ride.
Our commission promptly reduced this
rate to 81. gold. and in May last to
$40, or cents per mile. The old
rate of SO. Snd even IS. was pure rob-
berry. The passenger had no recourse
there was no competing line. He could
not get across the isthmus on an OK
cart nor afoOt rln addition, the pas
senger had tosIAy cents per pound
on bis baggage, an onero4s imposition
still maintained.
TO date. then. government ownership
works well. The administration evil
IDENTIFY feels very cOmplacent over the
results thus far. although the nations
going into trade was incidental to its
paternal project of canal building for
the benefit of mankind in general. "un-
beknownst" 10 itself, as it We're But
whether accidental or Intentional. its
transportation venture pays well, and
perhaps under the glowing impulse of
success the administration may con-
clude to 60 farther afield
In the Panama railroad big club
has been placed In the governments
hands. 1t may choose to use it. Its
commanding position as a transconti-
mental line is undeniabIe. The Brls-
tow report shows that the administra-
ton fully appreciates its new power.
Suppose the president should conclude
TO bring II into play In the threatened
struggle with the railroads over rates9
Perhaps the energetic enlargement
of the BANANA roads capacity means
just that thing. 1t is TO be double
tracked. TO have large additions to its
rolling stock, and its terminal facilities
are TO be doubled. These improve