The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-07-11
PANAMA RAILROAD
is BADLY MANAGED
Mr.. Bristow Reports on His In
vestigations
CHARGES ARE EXCESSIVE
Recommends That Line Be Re
squIpped with Double Track and
Modern Rolling Stock and
Better Port Facilities.

Washington, July e.--The report or j. 1.
Brlstow, who was appointed as special
commissioner to investigate trade condi-
lions and other matters affecting tho
Panama Railroad and Steamship company
was made public today,
The report discusses from several points
of view the question of what policy
should be pursued by the government in
the management OF tho railroad and
makos a number of important recommen-
dations. Among these are tho continuance
of the railroad as a commercial line with
improved facilities for handling CONF
merce. including double tracking and re-
eauipping the line with modern rolling
stock. the enlargement of It's port Ia
cilities; the retention Of the steamship
line between New York and Colon; the
cancellation of the contracts with the Pa
cific Mail Steamship company and the
South American. and the opening of the
ports of Colon and Panama to all steam
ship lines on equal terms; and in certain
contingencies the establishment by the
railroad of steamship lines between Colon
and gulf ports, and Panama and I'M
portant United States Pacific coast ports.
It is also recommended that in traffic
conditions. American steamship lines be
favored as far as consistent with the
treaty obligations of the United States.
Mr. Bristow spent several months in
his investigation, visiting the Isthmus
of Panama, important ports on the west
ern coast of the isthmus of Tehauntepec
and the Pacific coast of the United
States. His report reviews the entire his
tory of the railroad and discusses ale
cations that its local freight and passen-
ger charges were excessive, and its traffic
contracts with steamship lines monopo-
listic
The abstract of Mr.. Bristow's report
is as follows:
Mr.. Brlstow's Report.
In making this investigation I have
visited New York. the isthmus of Panama
and the important ports on the western
coast of Central America, the Isthmus
of Tehauntepec Mexico Vera Cruz Mex
leo City, all the important ports ON the
Pacific coast of the United States and
on the Gulf of Mexico. I have also cor
responded with all the American consuls
and consular agencies on the west coast
of Mexico. Central and South America.
The Panama Railroad company was or
ganized under the laws of the state of
New York in 1919, and began the con
struction of the railroad across the 18TH
mus the same year. The road. AZ miles
long, was completed in 1855.
The concession from the government
o.
then called, gave to the Panama Railroad
company the exclusive right to build d
railroad across the isthmus, and provided
that no canal should he constructed
without the company's 81 consent. In 1881,
when the French company undertook
to construct canal, they secured con-
troll of the railroad by purchasing sixty
eight-seventeths of the' stock, for which
they paid about sl7,0OOlO00. When the
United States purchased the property
of the French Canal company, among the
assets was this railroad stock.
At the time of its acquisition by the
United States government, the road had
a bonded indebtedness of $2.372000 and
the concession required the payment of
an annual indemnity ,of $250,Oo0 to the
Colombian government.
From 1853 to 1881, the latter being the
date of It's sale to the French. the aver
age annual dividend was a fraction under
16 per cent From 1881 until it was ac-
quired by the United States, the average
annual dividend was Traction under )
per cent
The equipment of thetroad is old and
out of date.
The railroad practically Gowns all of the
land on which Colon. itss Atlantic termi-
nus, is built, and has three wooden
wharves there II also has three wood
en- wharves at Panama and steel pier
at La Boca For twelve years 1t has
operated a line of steamers Sbetween New
York and Colon Six ships are now in
use-three owned and three ,chartered
Complaints.
AT the time this investigation began
complaints had been made that the rail
roads local freight and passenger charges
We're excessive
That 1t had traffic contracts with the
Pacific Mail Steamship company, and
with two South American lines. that were
monopolistic in their character, and in
furious to commerce
That 1t had maintained a monopoly fol
its own steamers on the Atlantic side
That shipments via Panama We're care
lessly handled, resulting In heavy loss
by damage and theft.
That owing to lack of facilities there
was a congestion of freight on the 18TH
mus.
That commercial business was made
secondary to canal business, greatly to
the injury of commerce.
Local Rates.
focal rates We're formerly excessive,
but a new schedule, adopted February l.
1875. appears TO be reasonable, and has
resteyed. to a great measure. the cause
Of this complaint.
Pacific Mail Contract.
The contract with the Pacific Mail
Steamship company gave 1t the eXclu-
siye privilege of through bills of laidins
to and from all Pacific ports north OF
Panama and that company agreed TO give
through bills of lading only by the Pana-
ma route. Both parties agreed to CO.
onerate in the making of rates and in
protecting each against competition from
other steamship lines.
Representatives of the Central American
countries of Costa Rica, Nicaragua and
Guatemala complain that the Pacihc Mail
charges excessive rates. that the con-
tract is an impeachment TO commerce be-
tusen their respective countries and tn
limited states and that there is discrim-
nation in rates in favor OF europe as
against the United States
Coffee is the principal proouct Oh tne
Central American countries Inc iase
on ton of 1000 lSilogrammes, or ""
no.,nds of clean coffee from all Contra
American ports, with one exception &c
N.w York is SIS 40. while that TO Europe
,s ZIG * The coffee-producing areas OF
these Central American countries are
usually from thirty-five to one hounore.
mites from the coast, to which the cor
H.. is transported by rail for shipment
The cost of transporting the conee owe