The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-04-16
SHONTS DECLARES
RAILROAD RATES
WILL NOT Be CUT
Chairman of the Panama
Commission Assures
Traffic Managers.
POWER OF GOVERNMENT
Holds in Hands Key to the
lranScontinental Tariff
Schedules.

Railroad rate regulation, of a drastic
nature, at least so far as it affects
transcontinentaI business, will be in
the power of the Government after
next Monday. This power, according
to Chairman Shonts, of the Panama
Canal Commission, Will not, however,
be exercised.
Mr. Shonts and the members of the
commission will go to New York Mon
day and attend the reorganization
meeting of the Panama Railroad Com
pany. On the strength of the Govern
ment control of the railroad they will
be members of the board Of directors.
and Mr.. Shonts will become president
of the Panama railroad.
In an interview yesterday afternoon
Mr.. Shonts was asked what action
would be taken at the meeting, and
whether new rate schedules would be
proposed, the existence of which would
force down the competing rates of
trunk lines across the Continent.
Will Not Enter Competition.
You may say positively" said Mr.
Shonts, that the Government owner
ship of the Panama line will IN no way
affect the business of railroads in the
United States. The Government has
taken over the Panama railroad as a
means of assisting in the construction of
the canal. not as an undertaking IL com
petition with the railroads of this coun-
try.
Il do not think the rates at present
charged on general merchandise for the
trans-isthnlian haul will be altered The
Government doesn't propose TO run the
railroad in opposition to systems own
cd privately III the United States.
The control Of the line. however
places in the hands of the Government
a powerful instrument which could be
used at any time - force down trans
continental rates n case they should be-
come exorbitant. No such action as pres
ent seems necessary
Sets Question at Rest.
This statement, coming from one who
is probably closer than any one in
Washington to President Roosevelt s
canal policy. apparently sets at rest the
apprehension OF the railroad interests
that heavy cuts in rates on tho isthmus
are contemplated. Representatives of
the lines that would have been affected
have been in Washington foj- the past
two weeks. suffering, apparently, from
little less Than panic.
These representatives pointed out that
the present charge per ton from Colon
to Panama could be cut in iaIf and still
maintain a profitable operation OF the
railroad. After July II, the Pacific Mail
Steamship Company monopoly of the
railroad business from Panama to San
Francisco will cease, the present con-
tract expiring on that date.
With lines now owned by the COM
pany. and contemplated by the Govern
ment. the la. ter will soon be prepared
to accept general shipments from New
York to San Francisco, via the isthmus,
and when the railroad is double tracked
the route will sustain a heavy volume OF
business.
Traffic Men Afraid.
The traffic men were afraid the Gov
eminent might handle such freight al
the rate OF about 81 ton, whereas the
Francisco overland is now about So a
ten.
Mr.. Shonts was asked if Joseph l.
Bristow, who was appointed by the
President a special commissioner to in
Quire into the rate proposition, would
appear at the directors meeting Mon
day. Mr. Shonts said he didn't know
Mr.. Bristow returned here from a jour
ney of inquiry to Panama and San
Francisco few days ago, and his find
ings have been communicated 10 Sec
Tetary Taft and the commission. What
ever action could be taken by the Gov
ernment on his report would have to be
voiced through the board of directors OF
the Panama Railroad Company.