The Providence news. (Providence [R.I.]) 1891-1906, 1905-04-26
OPPOSED TO
MONOPOLY
AT PANAMA

Washington, April 26-Secretary IaN
has made a declaration OF the greatest
Importance 10 railroads respecting the
policy OF the government relative to the
existing monopoly OF traffic across the
lsthmus OF Panama and the fixing OF
rates over the Panama railroad. ar bear
ing on the existing rates OF trans-oonu-
mental traffic.
The publication OF several interviews re-
Gently with the secretary himself, with
President shon.s ~ the Canal Commits
sion and with Chief Eng1neer Wallace has
led 10 much confusion In the public mind
OH these subjects, and the secretary con-
cludsd 10 publish \ letter he has Just
written as the best way OF making known
his own views anl purposes.
In this letter he makes II plain that
there is 10 be no discrimination whatever
between tho several steamship companies
in handling their business across the isth-
mus; that he does not anticipate any con-
siderable effect upon the trans-continental
traffic OF a rear-nngement OF the Panama
railrnad rates. but that this readJustment
will ne had regardless OF such effects. The
lNNifT ~ a. ADilpNe ih Roits
ONLY REASONABLE RETURNS.
my Dear Mr.. IIooker-I am in receipt
of sour letter os April 81 and have read
It with interest The policy OF the govern
ment In managing the Panama railroad In
T. charge such rates as will pay for the
carriage of the goods across the sthrnus
a reasonable return on the investment or
the government and nothing more.
ut will permit no discrimination against
or in favor Of any OF the connecting
steamship lines. II may he that this policy
will affect the trans-contnental rates as
TO those classes OF freight that can
stand the isthmus trip favorably for the
shipper
However. MT. Wallace. our chief engi-
neer and a railway manager OF expert
ence, thinks that the proposed changes
viii not have much influence on trans
continental rates, because he thinks that
but a small proportion OF that which goes
10 make up trans-continental freight can
be carried by the isthmus.
THE Panama Railroad company owns
three steamships, which ply between New
York and Colon. We shall make the rate
upon these ships as low az possible con-
sistent with paying a reasonable compen-
sation for the carriage and the invest
ment
I'VE shall run them merely FOR the pur-
pose Of preventing combination to raise
the rhtes for the delivery OF material for
the construction OF the canal from the
United States 10 the isthmus
WILL BREAK MoNoPoLIEs.
The government Is not running and
does not expect to run a line between
New York and San Francisco. or be-
tween San Francisco and New York;
hence the relation OF its policy 10 trans
continental rates is only indirect
The policy OF the Panama Railroad
company. therefore IN view Of its owner
ship Of the three steamships and the
docks al Colon and it's resulting ability
10 exclude from the New York and Colon
business any other steamship line has
been 10 monopolize the trade between
New York and Panama on the one side,
while its arrangements for exclusive
through billing between New York and
San Francisco with the Pacific Mail
Steamship company produced a mono
poly for the Pacific Mail trade on the
other side between Panama and San
Francisco on the north and n monopoly
for the Chilean and Pacific Steamship
companies from Panama to the south.
So far as the action OF the Panama
Railroad company can break up these
monopolies. IL is being taken.
Tho governments acquisition of the
railway line was not primarily for the
purpose OF affecting railway or ocean
rates, trsns-continental or otherwise n
was for the purpose OF acquiring an
instrument with which to construct the
canal, an instrument which was indis-
pensable 10 the accomplishment OF our
purpose within reasonable time