The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-28
TRANSPORTATION NUT
IS HARD TO CRACK
Panama Railroad Problem as
Affecting TranscontlnentaI
Lines
Globe Special Washington Service,

1917 G Street
WASHINGTON, April 27.-High of
Metals and traffic managers all over
the country are interested in the future
acton OF the government in regard to
transportation across the isthmus of
Panama. There is no longer any ques-
ton that the isthmian canal commits
sion will double track the Panama rail-
road, greatly increasing the traffic ca
pacity of the line: but the future
steamship connections to be estab-
ished at Colon and Panama, the east
ern and western terminals, respectively.
are still a problem.
In private ownership, the Panama
railroad earned more than 80 per cent
Tor It's shareholders, and it goes with
OUT saying that the government viii
reduce freight rates. If steamship con-
nections should be established of a
nature enabling the carrying of through
freight between New York and San
francisco at corresponding reduc-
ton, there might be a perceptible eff
feet on the business Of the transcon-
tinental railway lines.
These conditions have been well I'M
derstood for several weeks, and signifi-
cant comment from many quarters has
not been lacking. The interest in
creases. however, as the time an
proaches when some definite announce
ment may be expected from the gov
erNnent. Many railroad men believe
that there Is no element of danger to
the transcontinental lines in the pres
ent situation. They are not scared II
appears, however, that I'm hearings held
pefore the house committee on inter-
state and foreign commerce in New
York some weeks ago, the following
dialogue took place:
Do Some Wiping Out
Mr.. Walker-The whole business of
the isthmus route can be increased.
Mr.. Mann-If you had two new YES
sells from Colon to New York. and
made proper rate. do you think those
vessels could get all the business they
could carry?
Mr. Walker-Without doubt.
Mr.. Mann-If we, the government.
should, in addition to that, put a line
on the Pacific, would we get more
business at a low rate, or would we
lose business by losing the Pacific Mail
line?
Mr.. Walker-If you put line on the
Pacific, and run 1t regularly. you can
wipe the transcontinental lines off the
face of the United States.
Mr.. Walker was the traffic manager
OF the Panama railroad and of the
Panama steamship line: Mr.. Mann is
in
nois. 1t is a matter of opinion even
among those who heard Mr.. Walkers
testimony as to whether he meant ex-
actly what he said. but the prevailing
opinion is that he spoke at least ac-
cording to his own conviction. although
MS judgment may not have been good
Business insignificant
The fact seems to be established that
the average of rates from New York
to San Francisco by way of the isthmus
is at present lower than the average
on the transcontinental railroads. 1t
has been claimed that the average tar
IN Is about 80 per cent lower; yet the
Panama railroad and its connections
have carried but an insignificant
amount of the total business. The
through traffic last year amounted to
396, 900 tons.
The time required for the through
shipment of freight by way of the
isthmus is probably longer on the av-
erage than the time required for ship
ment over the transcontinentaI rail-
roads. The Panama railroad people
count on about thirty days, when the
steamship connections are made
promptly. Many shipments by rail
across the continent require as long a
time as that, but much quicker time
can be made and has been made.
The managers of the Panama rail-
road have represented that one-third of
the through traffic between the Atlantic
and Pacific Seaboards goes by water
One-sixth of the total, they say. is car
ried by way of the isthmus of Panama,
and one-sixth more by way of the
straits of Magellan or Cape Horn This
claim, however, is based on figures
four or five years old, and IL is Ger
tain that there has been a tremendous
increase in the volume OF traffic The
fraction of the total which is carried
by way of the isthmus may not be as
large as II formerly was.
No Government Ships There
Former Fourth Assistant Postmaster
General Bristow, who was recently APP
pointed by the president to make an
investigation of the Panama railroad
and steamship situation. does not be-
lieve that there will be any lack of
transportation facilities between PAN
anna and San Francisco. 1t is evident,
also, although he has not made a di-
rect statement on the subject, that he
does not believe the Pacific Mail
Steamship company will make good its
threat of withdrawing it's ships. If
the threat should be carried out. il is
pretty certain that other American car
riers would take the place of these
vessels, and there is no likelihood that
the government viii put on ships for
this service.
If the government keeps out of the
business there is little rea-
son TO believe that there will be any
radical reduction in through rates from
New York to San Francisco. The
United States will, of course, make a
in the rates on the railroad.
but if the Pacific Mail remains in the
business between San Francisco and
Panama, that company will certainly
not reduce it's charges, and the gov
eminent will have no power to compel
a reduction, even IL IL should desire
to do so. It Is firmly believed by off,
Gals who have inquired into the stu
alton very carefully that the Pacific