The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1905-04-17
Panama Tariffs to
Continue as at
Present.
Chairman ShontS Gains
Fears Of Tran .CODti-
mental Officials.
Government Will bot Enter Into Com
petition With Llnss in the
United States.
Special Dispatch to The call.

| CALL BUREAU, POST BUILDING,
WASHINGTON, April l6-f state
nlents made by Canal Commissioner
! Shonts are to be relied upon, the Cow
eminent does not intend TO run
amuek" among the trans-continental
railroads on the subject of freight rates
on the Panama Railroad This highway
viii tomorrow pass absolutely under
the control of the Federal Government
and Commissioner Shonts, by virtue of
his position, will become its president.
| A few days ago the presidents of
| some of the trans continental railroads
| hastened to Washington to checkmate
any move that would Interfere with
| their dividends They have been con-
i trolling rates between the Atlantic and
Pacific seaboards for so many years
without hindrance that federal control
of this short line of road, permitting
all steamships to trans-ship across the
| isthmus at identical rates, loomed up
/ as a menace TO the dividend paying
power of their roads.
The visit 20 Washington appears to
have been fruitful in results, for in
a seni-official interview, Chairman
Shonts announces that the railroads
reed have Eofhssig 70 fear.
You may say positively said
Shonts, that Government ownership OF
the Panama railroad will in no way
i effect the railroad business of 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 in
| competition with the railroads of this
| country.
Il don't think the rates at present
charged on general merchandise for
l. -
The Government does not propose to
run a railroad in opposition to systems
owned privately in the United States.
! Control of the line. however. places in
! the hands of the Government power
full instrument, which could be used
| at any time to force down trans-conti-
i rental rates in case they should be-
come exorbitant. No such action at
present seems necessary
NEW YORK, April 16.-Secretary OF
War Taft. who is here to attend the
annual meeting of the directors of the
Panama Railroad Company in this city
/ Tomorrow had this to say tonight on
i the affairs of the railroad company:
THE meeting will result in complete
reorganization of the company. The
| Government is now in control of the
the United States to control the affairs
! of the company in the work in con-
! structing the canal. We desire the af-
fairs of the road conducted in harmony
with the commission which will have
! charge of the general construction
work. With this end in view the di-
rectors of the Panama Railroad Com
pany, at the meeting on Monday. will
| elect Theodore P. Shonts. the new
! chairman of the Panama Canal Com
4 mission, president of the Panama Rail-
road Company.
with Mr.. Shonts at the head of the
| company it is certain that its affairs
will be conducted most satisfactorily.
| His experience as a practical railroad
man will enable him to operate this
railroad just as the Panama Canal
| Commission may desire, while the work
of construction is in progress The
entire official board of the company
will be comprised of either members
! of the commission or men who are in
terested in the work of constructive
the canal BY official board 1 mean
the officers and directors of the COM
{! pany.
I'VE expect to have this road in
readiness at the time the work of the
canal construction is begun and man
aged in manner so as to facilitate
this great task