Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-11
TO BREAK UP MONOPOLY
RELATIVE TO 18TH
MAN TRANSPORTATION.
Memorandum of Ministers From South
and Central America Submitted e
to Secretary Taft.

Among the suggestions to Secretary Taft
contained in the memorandum of the min
listers representing the west coast South
and Central American republics, relative to
transportation across the Isthmus of Pan
ana, are the following:
The propriety of reducing railroad tariff
rates: the reduction of freight and pas
senger rates between Colon and New York;
that ships of all nations and cargoes of all
origins have the same facilities; that the
work of building the canal be not allowed
to entirely absorb the Panama railroad, but
that the railroad be utilized as heretofore
for the transportation of freight across the
isthmus.
The memorandum states that the isthmus
has offered two great obstacles to the
exchange of products between the eastern
coast of the United States and the Latin
American countries. One of these Is the
land barrier which the United States is
about to remove, the other has been the
monopoly of the railroad line, which can
be remedied, as the United States is now
owner of the railroad 1t states that the
present railroad rates are prohibitory.
An Alleged Trust.
The ministers say further:
although the navigation companies on
the Pacific do not belong to the Panama
Railroad Company, this company has ar
ranged matters so that the northern coast
may be served exclusively by the Pacific
Mail Steamship Company and the southern
coast by steamship companies formed in
to a trust. viz, the Pacific Steam Naviga-
ton Company and the South American
Steamship Company"
The memorandum reads:
''These lines, as a matter of course, take
advantage of this privilege to exact as high
rates as possible The working of this
monopoly is very plain. The Panama Rail-
road Company grants transit facilities only
to the combined companies above referred
to, while it binders and closes all doors to
other ships outside of the combination ar
irving at Colon or Panama.
For example: Not long ago large ex-
porting New York firm sent q cargo steam
er to Colon. Besides the difficulties of Sc
curing a pier, the cargo, when unloaded,
remained on the piers of Colon for several
weeks without transshipment. 1t is useless
to say that the interested parties stopped
sending any more steamers TO Colon.
owing to the same monopoly, the Pa
cific Steam Navigation Company and the
South American Steamship Company had to
abandon the extension of their traffic up
to San Francisco, Cal, leaving the field ex-
clusveIy to the Pacific Mail Steamship
Company, which has under it all the traffic
of the coast of Central America
High Rates on Mail.
1t is pointed out that the Panama Rail-
road Company charges 40 cents per pound
on mail crossing through the isthmus, which
has caused some of the southern republics
to impose an extra charge of 1 cent for
each half-ounce letter postage by that
route.
Greater rapidity of communication is
urged, and the ministers promise to call the
attention of their governments to this
point, recommending to them that if 1t is
possible they enter into an agreement to
insure at least two fast trips monthly be-
tween Valparaiso and Panama, stopping at
the principal ports en- route, and like i'm
provement on the Central American coasts.
They add:
1--WE will also recommend to our govern
ments the propriety of lowering the freight
and passenger rates on the steamers ow the
Pacific, although we believe that this will
be obtained through competition incident to
the abolishnlent Of the monopoly of the
isthmus."