The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1905-04-22
CUT OF so PER CENT
GOVERNMENT REDUCES RATES
! YIN PANAMA.
u win Probably f1ean Great Shak-
Ing Up OF TranSc0nftnents0
freight and Passenger Rates.
panama Road to Be Double
Tracked.

Seattle, April 19.-f the avowed pol
10y Of the war department is carried
out in the operation Of the Panama
railroad and it's steamship connections,
transcontinental rates, both freight
and passenger, will receive such q
shaking up as has not been known fo1
many years, if ever.
The latter part Of last month Gen.
Joseph l.. Bristow, special commits
sioner Of President Roosevelt, arrived
in Seattle, and for couple Of days ad-
dressed himself to acquiring informa-
ton that he was to incorporate into q
report to President Roosevelt and Sec-
rotary Taft, bearing upon the CONNER
cial relations Of the cities Of the Coast
with the Panama railroad, and the
contract Of the Pacific Mail line. he
also pursued his inquiries at other
cities on this Coast.
The result of his and other reports
to Secretary Taft was the announce
ment of q policy that will probably
set rate makers to thinking.
Correspondence reached Seattle yes
terday that Secretary Taft had an.
nounced that the intention OF the gov
eminent was to make q reduction Of
something more than so per cent In
traffic rates via the isthmus. The cor
respondence further predicts that this
will deal an unexpected blow to the
transcontiDental railroads, and that
the effecs of the cut can hardly be esti-
mated.
Facts Briefly Stated.
The facts, as briefly as can be stat
ed, are that on Monday the United
States came into full and active con.
troll Of the Panama railroad, following
the annual meeting Of the directors Of
the road, and that now, instead Of
owning only the controlling shares, its
possession is absolute, every share Of
stock having passed into the hands Of
the United States, including the steam.
ships plying between New York and
Colon and forming an extension be.
tween the road and Atlantic coast
ports.
According to Secretary Taft one OF
the first acts of the new directorate
will be to put the reduced rates into
effect, all Of which will be in ACCORD.
anoe with the recommendations Of the
congressional committee in February,
based upon its Investigations at that
time, as to the operation Ut the Pana.
ma railroad. The committee reported
its recommendations that the govern.
ment retain and operate the road, and
also cut in two the existing tariff rates.
Under the outgoing management OF
the Panama Railroad Company, which
has worked in harmony under q Traffic
agreement with the transcontinental
railroads, freight rates from New York
to San Francisco via Panama varied
from S. to $12 ton. Secretary Taft'a
plan is to make fat rate open to ev.
ybody Of not more than 81 a ton, and
perhaps as low as So ton, according
to the Wall Street Journal. Passenger
rates from New York to Panama are
now-flrst class-$85 to 800, and
New York to San Francisco, $115.
These rates will probably be fixed in
the new schedule at $45 to Panama
and $65 to San Francisco. Even at
these low rates it is stated that the
railroad and steamships will earn all
fixed charges and a small dividend on
the capital stock, 81, 900. 900.
Great Effect Expected.
1t is expected that these reduced
rates will have great effect upon
transcontinental business, and in sup
port Of this belief it 10 said that spec
ulation as to the possible report Of the
committee and its adoption by the gov
eminent, took q queer turn. Shipments
to be placed as soon as the new rates
become effective are already 80 large
that the Panama railroad company,
prior to Monday, when it was absorbed
by the government, had engaged four
extra steamers, or, in other words,
doubled it's capacity. Chief Engineer
Wallace has reported that in anticipa-
ton Of this increased business, the
road will be double tracked and orders
have already been placed for number
Of heavy freight locomotives and sew
eral hundred cars.
It is also stated that the government
is now inclined to follow the recon-
mendations Of the congressional com.
mittee that the government install it's
own line OF steamers on the Pacific be-