The San Francisco call., 1905-04-26
Panama Rail Tariffs, to
Be Rearlanged Regardless
of the Effect Upon the
Transcontinental Railroads
GOVERNMENT EXPECTS
TO REAP NO PROFIT
Line Across the Isthmus
VIII Charge No More
Than Is Necessary to
Pay Operating Expenses

WASHINGTON, April 25.-Secretary
Taft has made a decision that is of the
greatest Importance to railroad inter
est, respecting the policy of the Gov
ernment relative to the existing
monopoly of traffic across the Isthums
Of Panama and the fixing of rates over
the Panama Railroad. as bearin- on
the existing rates on transcontinental
traffic.
Secretary Taft makes it plain that
there is to be no discrimination what
ever as between the several steamship
companies in handling their business
across the isthmus. He does not ex-
pect any considerable effect upon
transcontinental traffic from a re-
arrangement of Panama railroad rates.
but that readjustment will be had re-
gardless of such effect. In a letter an
nouncing his policy the Secretary says:
The policy of the Government in managing
the Panama Railroad is to charge such rates
as Will pay for the carriage of the goods
the investment of the Government and nothing
more 1t will permit no discrimination against
or In favor of any of the connecting steamship
lines. 1t may be that thrs policy will affect
the transcontinental rates on those classes of
freight that can stand the isthmus trip. favor
able Tor the shipper. However. Mr.. Wallace,
our chief engineer and railway man OF expe-
rience, thinks that the proposed changes will
not have much influence on transcontinental
tion Of that which goes to make UP trans
continental freight be carried by the 18th
merchandise carried is to be a considerabIe
period In the tropics exclude the possibility of
carrying many kinds
FEDERAL STEAMSHIP RATES.
The Panama Railroad Company owns three
steamships. which ply between New York and
Colon We shall make the rate upon these
ships as low as possible consistent with pay
ing reaonable compensation for the car
merely for the purpose of preventing a COM
bination to raise the rates from the United
States to the isthmus on material that Is to be
used in the construction OF the canal.
The Government is not running and does
not expect TO run line between New York
and San Francisco or between San Francisco
and New York.
The policy Of the Panama Railroad Company
heretofore. in view of It's. ownership of three
ships and the docks at Colon and its resulting
ability to exclude from the New York and
Colon business any other steamship line, has
rk and Panama, on the one side. while its
arrangement for exclusive through billing be-
Pacific Mail Steamship Company produced a
monopoly for the Pacific Mail on the other. be-
north, and monopoly for the Chilean and
Pacific Steamship companies from Panama to
the south. So far as the action of the Pana-
ma Railroad Company can break up the mon
opoy 1t is being taken.
The Government acquisition of the railway
line was not primarily for the purpose OF af-
fecting railway rates, transcontnen-
tai or otherwise 1t was for the purpose OF
acquiring an instrument with which TO con-
struct the canal an instrument absolutely in
dispensable for the accomplishment OF our
purpose within a reasonable time. The in
cident that must hold the railroad under
a franchise requiring to do a commercial
business is what imposes upon US the obii-
cation to do what we can to make just rates
and prevent discrimination and this we shall
do II this ameliorates conditions we shall be
very glad. II 1t does not 1t will not be In
our power to do more
PREDICTIONS ARE WASTED.
The effect of changes in rates and trade
to make a prediction as to the result One
should study the local conditions which pre-
vail at Panama and at the many ports be-
tween Panama and San Francisco, In Mexico
and Central America and should estimate the
exact operation Of our coastwise laws. which
prevent the Intervention Of foreign shipping
Francisco and New York before expressing
orinion as to the effect Of the Governments
operation of the Panama Railroad upon the
rate between our west and east coasts
An attempt has been made here to estab-
lish an American line competing with the
Pacific Mail line between San Francisco and
Railroad Company. 1t proved to be dis
astrous failure and was followed by renewal
of the discriminating contract which Is to
terminate In July next
1t is possible that the time Is now ripe
for the establishment Of American competition
with the Pacific Mail between San Francisco
and Panama Certainly the Government in
operating the Panama Railway will do nothing
to hinder 1t. Nevertheless II IS possible that
has with respect to Mexican and Central
American trade and It's ownership OF a dock
at sotS SolG saes may WHICH viii do ali ths
business and fix the rates without entoyins
any discrimination in its favor by the Panama
nrevent this except by running a line from
Panama to San Francisco for the purpose.
which It cannot do.