The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-04-26
PANAMA ROAD TO
BREAK MONOPOLY
Secretary Taft Says Government
Will Do All It Can to Make
Rates just.

Washington, April 6-Secretary
Taft has made decision of the greatest
Importance to railway interests regard
ing the policy of the government rela-
tive to the existing monopoly OF traffic
across the Isthmus of Panama and the
fixing of rates over the Panama railway
as bearing on the existing rates of
transcontinental traffic.
The publication of several interviews
recently with the secretary himself,
with representatives of the canal COM
mission and with Engineer Wallace, has
led to much confusion in the public
mind on these subjects, and the score
tary decided to make known his own
views and purposes. He makes it plain
whatever as between the several steam
ship companies in handling their bust
ness across the isthmus. He says:
Show No Discrimination.
The policy Of the government In man
aging the Panama railway Is to charge
such rates as will pay for the carriage
Of the goods cross the isthn1us, a reason
able return on the investment of the gov
eminent and nothing more. 1t will per-
NIT no discrimination against or in favor
of any Of the connecting steamship lines.
1t may be that this policy will affect the
transcontinental rates, as to the classes
of freight that can stand the isthmus trip,
favorably for the shipper.
The Panama Railway company owns
three steamships which ply between New
York and Colon. We shall make the rate
upon these ships as low as possible, con-
sistent with paying a reasonable compen-
sation for the carriage and the invest
ments., We shall run them merely for the
purpose of preventing a combination to
raise the, rates for the delivery of mate
rial for the construction of the canal from
the United States to the isthmus.
=: To. Break Up Monopoly. $500.
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. hence the
relation. of its policy to transcontinental
"a ties Is only indirect. The policy of the
Panama Railway company, heretofore, in
view. Of its ownership of the three ships
and the docks at. Colon and it's resulting
ability to exclude from the New York and
Colon business any other steamship line,
has been to monopolize the trade between
New York and Panama, on the one side,
while its arrangement for exclusive
thru billing between New York and
San Francisco with the Pacific Mail
Steamship company, produced monopoly
side between Panama and San Francisco
on the north, and a. monopoly for the
Chilean and Pacific Steamship companies
from Panama to the south. e..
AS far as the action Of the Panama Rail-
way company can break UP the monopolies
action is being taken. The government
requisitioned the railway line for the pur-
pose Of acquiring an instrument with
which to construct the canal, an instru-
ment absolutely indispensable to the ac-.
sonable time. - =. o.. =. =: y
=. Make Just Rates. * s.
Z We shall do what we can to make Just
rates and prevent discrimination. II it
be in our power to do more -. - Sc. =
The effect OF changes in rate and trade
conditions Is so elusive that it Is hardly
safe to make a prediction as to the re-
suit. One should study the logical condi-
tons which prevail at Panama and at the
many ports between San Francisco, In
Mexico and in Central America, and
should estimate the effect Of our coast
wise laws, which prevents the interview
ton in the trade going via the 1sthmus
between San Francisco and New York.
before expressing an opinion as to the ef-
fects Of the governments operation of the
Panama railway on the trade between our
east and west coasts. It is possible 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 dc nothing to
hinder it.