Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1905-04-20
Washington LETTER.
WASHINGTON, D. O., April Is, 1905

One OF the severest tests OF which the
present administration has been, or will
be put, will be presented when the Presl-
dent returns and receives the protests of
the trans-continental railway companys
which are in arms over the destruction of
the monopoly they have long enjoyed as a
result of the monopoly of the Panama
Railway Company. Soon after that rail-
way was completed, its directors entered
into an agreement whereby they bound
themselves to transact business only with
certain steamship lines, notably the Pacific
Mail Steamship Company on the west coast,
and The Panama Steamship Company on the
east coast, which line it CONTROLS. In this
way transportation by way of the isthmus
was insured from competition and a monopoly
created which enabled the trans-continental
railroads within the United States to main
tain the high rates they have always charg-
ed, this conspiracy in restraint Of inter-
state commerce having been perfected by
the late Coils F. Huntington AS the
Panama railroad was without the United
States this government was power 'ess to
prosecute it for maintaining a trust in
violation of the Sherman law
Now that the Panama railroad has passed
to the ownership Of the United States, it 10
proposed to charge for transportation Of
freight and passengers only the actual cost
of transportation plus fair rate of profit
which shall be converted into a sinking
fund. But the more important feature of
the governments ownership, promises to
be the acceptance of freight and passengers
from all steamship and sailing lines which
now exist or which may be established,
regardless of what prices they may charge
for water transpoi tation. This means, of
course, that the rates between American
ports and the isthmus will be regulated by
free and fair competition and they will in
evitably be materially lowered from the
prices maintained when monopoly exist
ed. 1t is estimated by the railr ad lob
oiSotS; VIM nave OIL ettuN COiue ~ W dSulHS-
ton with the hope of protecting their eli
ents, that the free competition of steamship
companies and the Panama railway will
result in the lowering of freight rates be-
tween New York and San Francisco, via
Panam, from So ton, the rate now charged
to 81 a ton. Passenger rates, it is claimed,
will be lowered from $115 to sos, meals in
cluded. OF course the railroads will still
command the situation where time is
factor, but with freight which demands no
haste and with passengers who are willing
to take their time, the Panama route will
prove the favorite unless the railroads
lower their rates to accord with the new
water rate. The capacity of the Panama
railway will also be limited, but it has
been decided to double the track which will
somewhat offset that factor.
The railway lobbiests maintain that it
will plunge their clients into bankruptcy to
meet these rates. They do not say, how
eyer, that this would be the case only be-
cause of the extent to which the railway
stock has been watered. Nevertheless.
there will be strong pressure brought to
bear on the President to take some step
which will save the pampered railways from
the effects of fair competition, and there is
no doubt it will require great moral strength
on the part of the president to resist. Ii
the President proves invulnerable, then the
lobbiests will turn their attention to Con-
gress, and it is entirely possible that in that
quarter they may prove successful If,
however, the President and the Congress
prove true to the interests of the people.
the railways will doubtless be compelled
materially to lower their transcontinal
transportation rates.
The people of the United States are not
the only ones who have suffered from the
monopoly of the trans-isthman line, as is
shown by the protest of seven South Ameri-
can ministers who have filed a protest with
the State Department against the renewal
of contracts with South American steam
ship lines which they claim have been
robbiug the people of their respective
countries.
Apropos of the railway question, con-
siderable interest attaches to the hearings
which are to be given on the subject of rail-
way legislation by the Senate Committee on
Interstate Commerce, of which Senator
Elkins, of West Virginia. is chairman. The
members of this committee are Senators
Elkins, Cullom, Aldrich, Kean, Dolliver,
Foraker, Clapp, Willard, Tillman, Nc
Laurin, Carmack, Foster, of Louisiana, and
Newlands. The first of the meetings
called to deal with this subject under
authority of special Senate resolution.
will occur next Monday, and it is expected
that they will be held almost continuously
for several months. OF the above member
ship, Senator Aldrich is still in Europe.
M l1n. AT.t. 81 FT-sN =